As filed with the Securities and Exchange Commission on July 6, 2007
Investment Company Act File Number 811-3955
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
NEW YORK DAILY TAX FREE INCOME FUND, INC.
(Exact name of registrant as specified in charter)
600 FIFTH AVENUE
NEW YORK, NY 10020
(Address of principal executive offices) (Zip code)
ANTHONY PACE
C/O REICH & TANG ASSET MANAGEMENT, LLC
600 FIFTH AVENUE
NEW YORK, NEW YORK 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-830-5200
Date of fiscal year end: April 30
Date of reporting period: April 30, 2007
ITEM 1: REPORT TO STOCKHOLDERS
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600 FIFTH AVENUE, NEW YORK, NY 10020
(212) 830-5200
NEW YORK
DAILY TAX FREE
INCOME FUND, INC.
===============================================================================
Dear Shareholder:
We are pleased to present the annual report of New York Daily Tax Free Income
Fund, Inc. (the "Fund") for the year ended April 30, 2007.
The Fund had net assets of $384,379,793 and 2,313 active shareholders as of
April 30, 2007.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/S/ Steven W. Duff
Steven W. Duff
President
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
EXPENSE CHART
FOR THE SIX MONTHS ENDED APRIL 30, 2007
(UNAUDITED)
===============================================================================
As a shareholder of the Fund, you incur the following ongoing costs: management
fees and other Fund expenses. You may also incur distribution and/or service
(12b-1) fees. This example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period November 1, 2006 through April 30, 2007.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use information in this line, together with
the amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading entitled "Expenses Paid During the Period" to estimate
the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees that you may incur in other
mutual funds. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds.
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Beginning Account Ending Account Value Expenses Paid Annualized
Class A Shares Value 11/1/06 04/30/07 During the Period Expense Ratio (a)
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,013.80 $4.24 0.85%
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Hypothetical (5% return before $1,000.00 $1,020.58 $4.26 0.85%
expenses)
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Beginning Account Ending Account Value Expenses Paid Annualized
Class B Shares Value 11/1/06 04/30/07 During the Period Expense Ratio (a)
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,014.80 $3.30 0.66%
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Hypothetical (5% return before $1,000.00 $1,021.52 $3.31 0.66%
expenses)
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Beginning Account Ending Account Value Expenses Paid Annualized
Victory Shares Value 11/1/06 04/30/07 During the Period Expense Ratio (a)
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,013.90 $4.19 0.84%
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Hypothetical (5% return before $1,000.00 $1,020.63 $4.21 0.84%
expenses)
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Beginning Account Ending Account Value Expenses Paid Annualized
Advantage Shares Value 11/1/06 04/30/07 During the Period Expense Ratio (a)
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,013.00 $5.09 1.02%
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Hypothetical (5% return before $1,000.00 $1,019.74 $5.11 1.02%
expenses)
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(a) Expenses are equal to the Fund's annualized expense ratios multiplied by the
average account value over the period (November 1, 2006 through April 30, 2007),
multiplied by 181/365 (to reflect the most recent fiscal half-year).
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
APRIL 30, 2007
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Put Bonds (c) (4.31%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 7,670,000 ABN AMRO Munitops Certificates Trust-Series 2002-33 (Port Authority
of New York and New Jersey Consolidated Bonds, 128th Series)
Insured by FSA 11/29/07 3.70% $ 7,670,000 VMIG-1
8,900,000 New York State Environmental Quality GO - Series 1998G
LOC Westdeutche Landesbank AG 07/12/07 3.58 8,900,000 VMIG-1 A-1+
- ----------- ------------
16,570,000 Total Put Bond 16,570,000
- ----------- ------------
Tax Exempt Commercial Paper (4.37%)
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$ 5,000,000 New York Metropolitan Transportation Authority
LOC ABN AMRO Bank N. A. 06/15/07 3.65% $ 5,000,000 P-1 A-1+
1,800,000 New York State Dormitory Authority (Columbia University)
- Series 1997 05/10/07 3.65 1,800,000 P-1 A-1+
7,000,000 New York State Dormitory Authority (Columbia University)-Series C 05/10/07 3.65 7,000,000 A-1+
3,000,000 New York State Environmental Quality
LOC Bayerische Landesbank / Landesbank Hessen 05/23/07 3.62 3,000,000 P-1 A-1+
- ----------- ------------
16,800,000 Total Tax Exempt Commercial Paper 16,800,000
- ----------- ------------
Tax Exempt General Obligation Notes & Bonds (d) (9.24%)
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$ 2,250,000 Albany, NY BAN 07/12/07 3.90% $ 2,251,491
2,100,000 Liverpool, NY CSD BAN 08/16/07 3.70 2,101,779
5,500,000 Livingston County, NY BAN 11/02/07 3.58 5,518,030
10,000,000 Marcellus, NY CSD BAN 07/20/07 3.84 10,013,918
3,200,000 Monroe & Orleans Counties, NY RAN (Board of Cooperative Educational
Services, NY Second Supervisory District) 06/29/07 3.85 3,203,234
2,400,000 Otsego County, NY City School District of the City of Oneonta 06/27/07 3.75 2,401,353
3,000,000 Seneca County, NY Seneca Falls CSD BAN 06/21/07 3.78 3,001,513
4,500,000 Warren County, NY Glens Falls City School District 06/19/07 3.68 4,504,773
2,500,000 Whitney Point, NY CSD BAN 08/10/07 3.73 2,500,463
- ----------- ------------
35,450,000 Total Tax Exempt General Obligation Notes & Bonds 35,496,554
- ----------- ------------
Variable Rate Demand Instruments (e) (80.23%)
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$10,000,000 ABN AMRO Munitops Certificate Trust 2005-60
(New York State Thruway Authority - Series G) (d)
Insured by FSA 08/01/13 3.97% $ 10,000,000
3,995,000 ABN AMRO Munitops Certificate Trust - Series 2002-31
Insured by MBIA Insurance Corp. 11/15/10 3.97 3,995,000 VMIG-1
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The accompanying notes are an integral part of these financial statements.
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===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (e) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 BB & T Municipal Trust Floater - Series 1002 07/01/18 4.02% $ 2,000,000 VMIG-1
5,300,000 Clinton County, NY Industrial Development Agency
LOC KeyBank, N.A. 07/01/17 3.94 5,300,000 VMIG-1
1,900,000 Dutchess County, NY IDA (Marist College) - Series 2005 A
LOC Bank of New York 07/01/35 3.90 1,900,000 A-1+
1,120,000 Dutchess County, NY IDA Civic Facilities RB
(Trinity - Pawling School Corporation)
LOC Allied Irish Banks, PLC 10/01/32 3.89 1,120,000 VMIG-1
12,155,000 Eagle Tax - Exempt Trust - Series 963206
(New York State Urban Development Corporation) 07/01/16 3.98 12,155,000 A-1+
2,000,000 Eagle Tax-Exempt Trust-Series 20015101 (Puerto Rico Infrastructure
Financing Authority Special Obligation Bonds 2000 - Series A)
Collateralized by SLGS Securities 10/01/34 3.96 2,000,000 A-1+
2,000,000 Eagle Tax - Exempt Trust - Series 2006 0107 Class A COPs
(The Port Authority of New York and New Jersey Consolidated Bonds
143rd Series) 04/01/36 4.00 2,000,000 A-1
2,195,000 Erie County, NY IDA (Hauptman - Woodward Project) - Series 2004
LOC KeyBank, N.A. 03/01/24 4.01 2,195,000 P-1 A-1
5,000,000 Floating Rate Trust Receipts - Series 2006-K1 (New York State
Dormitory Authority, Columbia University RB - Series 2006A) 07/01/26 3.95 5,000,000 VMIG-1
7,000,000 Floating Rate Trust Receipts - Series L29 (New York State Dormitory
Authority, St. Lukes - Roosevelt Hospital Center - Series 2005)
Collateralized by FHA 08/15/25 3.98 7,000,000 A-1
1,000,000 Forest City New Rochelle, NY
(Revenue Certificates of Trust) - Series 2003
LOC Wachovia Bank, N.A. 06/01/11 3.94 1,000,000 VMIG-1
2,800,000 Jay Street Development Corporation, Courts Facility Lease RB
(New York City Jay Street Project) - Series A-4
LOC Depfa Bank PLC 05/01/22 4.00 2,800,000 VMIG-1 A-1+
2,785,000 Lehman Municipal Trust Receipts
Insured by AMBAC Assurance Corporation 07/01/36 4.08 2,785,000 VMIG-1
2,000,000 Long Island Power Authority, NY RB (Electric System)
LOC Westdeutche Landesbank AG 05/01/33 4.07 2,000,000 VMIG-1 A-1+
600,000 Long Island Power Authority, NY RB (Electric System)
LOC Bayerische Landesbank / Landesbank Baden - Wurttemberg 05/01/33 3.88 600,000 VMIG-1 A-1
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESMENTS (CONTINUED)
APRIL 30, 2007
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (e) (Continued)
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$ 2,500,000 Monroe County, NY IDA (Depaul Properties, Inc. Project)
- Series 2006
LOC KeyBank, N.A. 06/01/26 3.94% $ 2,500,000 VMIG-1
2,495,000 Morgan Stanley Floating Rate Trust Certificates - Series 2004-950
(New York City, NY Trust for Cultural Resources RB - Series 2004)
Insured by FGIC 02/01/34 3.96 2,495,000 VMIG-1
2,100,000 Nassau County, NY IDA
(Cold Spring Harbor Project) - Series 1999 01/01/34 3.99 2,100,000 A-1+
4,500,000 New York City, NY GO - Fiscal 1994, Series H-4
Insured by AMBAC Assurance Corporation 08/01/15 3.94 4,500,000 VMIG-1 A-1+
5,590,000 New York City, NY GO - Fiscal 1995, Series B-9
LOC JPMorgan Chase Bank, N.A. 08/15/23 3.88 5,590,000 VMIG-1 A-1+
2,350,000 New York City, NY GO - Fiscal 1995, Series F-3
LOC JPMorgan Chase Bank, N.A. 02/15/13 3.90 2,350,000 VMIG-1 A-1+
11,060,000 New York City, NY GO - Fiscal 2004, Series A-3
LOC BNP Paribas 08/01/31 3.90 11,060,000 VMIG-1 A-1+
10,000,000 New York City, NY GO - Fiscal 2006, Series F-3
LOC Royal Bank of Scotland PLC 09/01/35 3.94 10,000,000 VMIG-1 A-1+
12,000,000 New York City, NY GO - Fiscal 1996, Series J-2
LOC Westdeutsche Landesbank AG 02/15/16 3.88 12,000,000 VMIG-1 A-1+
400,000 New York City, NY GO - Series A-5
LOC KBC Bank 08/01/16 4.07 400,000 VMIG-1 A-1+
1,500,000 New York City, NY GO - Series A-7
LOC JPMorgan Chase Bank, N.A. 08/01/20 4.00 1,500,000 VMIG-1 A-1+
1,700,000 New York City, NY GO - Series A-8
LOC JPMorgan Chase Bank, N.A. 08/01/17 4.07 1,700,000 VMIG-1 A-1+
1,200,000 New York City, NY GO - Series C
LOC JPMorgan Chase Bank, N.A. 10/01/23 3.96 1,200,000 VMIG-1 A-1+
1,300,000 New York City, NY HDC
(Columbus Apartment Project) - Series 1995A
Guaranteed by Federal National Mortgage Association 03/15/25 3.87 1,300,000 A-1+
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The accompanying notes are an integral part of these financial statements.
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===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (e) (Continued)
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$ 2,400,000 New York City, NY HDC MHRB
(Manhattan Court Development) - Series 2004 A
LOC Citibank, N.A. 06/01/36 3.94% $ 2,400,000 A-1+
1,000,000 New York City, NY Housing Development Agency
(West 48th Street Development) - Series A
Guaranteed by Federal National Mortgage Association 01/15/34 3.93 1,000,000 A-1+
8,025,000 New York City, NY IDA
LOC Bank of New York 03/01/34 3.90 8,025,000 A-1+
2,610,000 New York City, NY IDA Civic Facilities RB
(American Society Technion Project) - Series 2003
LOC Allied Irish Banks, PLC 10/01/33 3.89 2,610,000 VMIG-1
3,865,000 New York City, NY IDA Civic Facilities RB
(Convent Sacred Heart School) - Series 2002
LOC Wachovia Bank, N.A. 11/01/32 3.94 3,865,000 VMIG-1
1,275,000 New York City, NY IDA Civic Facilities RB
(Epiphany Community Nursery School Project) - Series 1997
LOC Bank of New York 05/01/11 3.93 1,275,000 VMIG-1
1,030,000 New York City, NY IDA Civic Facilities RB
(MSMC Realty Corporation Project) - Series 2001
LOC JPMorgan Chase Bank, N.A. 01/01/31 3.90 1,030,000 VMIG-1 A-1+
16,400,000 New York City, NY IDA Special Facility RB - Series 1997 B
(Korean Airlines Company Limited Project)
LOC HSBC Bank USA, N.A. 11/01/24 3.97 16,400,000 VMIG-1 A-1+
1,360,000 New York City, NY IDA IDRB(Abigal Press, Inc. Project)-Series 2002
LOC JPMorgan Chase Bank, N.A. 12/01/18 4.15 1,360,000 A-1+
5,000,000 New York City, NY Transitional Finance Authority-Series 2003 3-E 11/01/22 3.98 5,000,000 VMIG-1 A-1+
3,660,000 New York City, NY Transitional Finance Authority-Series 2003 3-B 11/01/22 4.08 3,660,000 VMIG-1 A-1+
1,040,000 New York City, NY Transitional Finance Authority
Insured by FGIC 01/15/15 3.96 1,040,000 A-1+
10,000,000 New York Clipper Tax Exempt Certificate Trust 11/01/20 3.96 10,000,000 VMIG-1
7,000,000 New York Metropolitian Transit Authority
Transportation RB - Series 2205G-2
LOC BNP Paribas 11/01/26 4.10 7,000,000 VMIG-1 A-1+
3,415,000 New York State Dormitory Authority
(Hospital Insured Mortgage RB) - Series 2004-M2 02/15/13 3.95 3,415,000 VMIG-1
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (e) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,250,000 New York State Dormitory Authority RB - Series 1492
Insured by GNMA 02/15/41 3.96% $ 2,250,000 A-1
5,000,000 New York State Dormitory Authority RB - Series C
(Catholic Health System Obligation)
LOC HSBC Bank US 07/01/22 3.95 5,000,000 VMIG-1
1,500,000 New York State Energy Research and Development Authority
(Con Edison Company) - Series 2004 C-3
LOC Citibank, N.A. 11/01/39 3.93 1,500,000 VMIG-1 A-1+
1,000,000 New York State Energy Research & Development Authority
Electric Facilities RB
(Long Island Lighting Company Project) - Series 1997 A
LOC Royal Bank of Scotland PLC 12/01/27 3.93 1,000,000 VMIG-1
2,700,000 New York State Energy Research and Development Authority
(Con Edison Company) - Subseries 2005 A-2
LOC Wachovia Bank, N.A. 05/01/39 3.88 2,700,000 VMIG-1 A-1+
7,800,000 New York State, Housing Finance Agency RB
LOC BNP Paribas 03/15/26 3.90 7,800,000 A-1+
3,900,000 New York State, Housing Finance Agency RB
Colleteralized by Federal National Mortgage Association 05/15/36 3.99 3,900,000 VMIG-1
8,300,000 New York State, Housing Finance Agency RB
LOC Lloyds PLC 12/01/39 3.90 8,300,000 VMIG-1
5,000,000 New York State Housing Finance Agency RB
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/33 3.93 5,000,000 VMIG-1
9,000,000 New York State Housing Finance Agency RB
(100 Maiden Lane) - Series 2004 A
LOC Bank of New York 11/01/37 3.95 9,000,000 VMIG-1
5,000,000 New York State Housing Finance Agency RB
(350 West 43rd Street Project) - Series 2004 A
LOC Landesbank Hessen -Thuringen Girozentrale 11/01/34 3.95 5,000,000 VMIG-1
1,750,000 New York State Housing Finance Agency RB
(Archstone Westbury) - Series 2004 A
LOC JPMorgan Chase Bank, N.A. 11/01/36 3.93 1,750,000 VMIG-1
11,000,000 New York State Housing Finance Agency
(Normandie Court II Project) - Series 1999 A
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/29 3.93 11,000,000 VMIG-1
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The accompanying notes are an integral part of these financial statements.
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===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (e) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 4,000,000 New York State Housing Finance Agency RB
(Taconic West 17th Street Project) - Series 2006 A
LOC Landesbank Baden - Wurttemberg 11/01/39 3.95% $ 4,000,000 VMIG-1
5,000,000 New York State Housing Finance Agency State Personal Income
Tax RB (Economic Development & Housing) - Series 2005 C
Insured by FGIC 03/15/33 3.88 5,000,000 A-1+
2,900,000 New York State Local Government Assistance Corporation
- Series 1995 G
LOC Bank of Nova Scotia 04/01/25 3.88 2,900,000 VMIG-1 A-1+
3,500,000 Newburgh, NY IDA Civil Facility RB (Community Development
Properties Dubois St. II Inc. Project) - Series 2005-A
LOC KeyBank, N.A. 10/01/30 3.99 3,500,000 VMIG-1
3,825,000 Ononadaga County, NY IDA
(Ononadaga Community College) - Series 2005 A
LOC Citizens Bank, N.A. 12/01/30 3.96 3,825,000 A-1+
10,445,000 ROCs II-R Trust - Series 2019 (New York City Transitional Finance
Authority - Series 2003 E)
Insured by MBIA Insurance Corp. 02/01/20 3.97 10,445,000 VMIG-1
3,000,000 ROCs II-R Trust - Series 458 (New York State Thruway Authority,
General Highway and Bridge Trust Fund Bonds - Series 2005 B)
Insured by AMBAC Assurance Corp. 04/01/20 3.97 3,000,000 VMIG-1
5,000,000 Societe Generale Municipal Securities Trust Receipts
- Series 1997 SGB 25 (New York City, NY Municipal Water Finance
Authority RB - 1997B)
Insured by MBIA Insurance Corp. 06/15/23 3.95 5,000,000 A-1+
1,900,000 St. Lawrence County, NY IDA Civic Facility RB
LOC KeyBank, N.A. 12/01/31 3.99 1,900,000 VMIG-1 A-1
5,000,000 TOCs-Series 2000-1 (Puerto Rico Infrastructure Financing Authority
Special Obligation Bonds 2000 - Series A)
Collateralized by SLGS Securities 04/01/27 3.93 5,000,000 A-1+
5,000,000 TOCs Trust - Series 2001-2 (Puerto Rico Public Improvement
GO Bonds of 2001)
Insured by FSA 07/01/19 3.93 5,000,000 A-1+
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (e) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 4,000,000 Suffolk County, IDA Civic Facility RB
LOC KBC Bank 12/01/36 3.94% $ 4,000,000 A-1+
- ----------- ------------
308,395,000 Total Variable Rate Demand Instruments 308,395,000
- ----------- ------------
Variable Rate Demand Instrument - Private Placement (e) (0.78%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Orange County, NY IDA IDRB (1986 Blaser Real Estate Inc. Project)
LOC Union Bank of Switzerland AG 09/01/21 5.36% $ 3,000,000 P-1 A1+
- ----------- ------------
3,000,000 Total Variable Rate Demand Instrument - Private Placement 3,000,000
- ----------- ------------
Total Investments (98.93%) (Amortized cost $380,261,554+) $380,261,554
Cash and Other assets, Net of Liability (1.07%) 4,118,239
------------
Net Assets (100.00%) $384,379,793
============
+ Aggregate cost for federal income tax purposes is identical.
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The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
FOOTNOTES:
(a) Unless the securities are assigned their own ratings, the ratings are those
of the bank whose letter of credit guarantees the issue or the insurance
company who insures the issue. All letters of credit and insurance are
irrevocable and direct pay covering both principal and interest. Ratings
are unaudited.
(b) In addition, certain issuers may have a line of credit, a liquidity
facility, a standby purchase agreement or some other financing mechanism to
ensure the remarketing of the securities. This is not a guarantee and does
not serve to insure or collateralize the issue.
(c) The interest rate shown reflects the security's current coupon, unless
yield is available.
(d) The maturity date indicated for the put bonds is the next put date.
(e) Securities that are not rated which the Fund's adviser has determined to be
of comparable quality to those rated securities in which the fund invests.
(f) Securities payable on demand at par including accrued interest (usually
with seven days' notice) and, if indicated, unconditionally secured as to
principal and interest by a bank letter of credit. The interest rates are
adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
KEY:
BAN = Bond Anticipation Note IDRB = Industrial Development Revenue Bond
COPs = Certificates of Participation LOC = Letter of Credit
CSD = Central School District MHRB = Multi-Family Housing Revenue Bond
FGIC = Financial Guaranty Insurance Company RAN = Revenue Anticipation Note
FHA = Federal Housing Administration RB = Revenue Bond
FSA = Financial Security Assurance ROCs = Reset Option Certificates
GO = General Obligation SLGS = State and Local Government Series
GNMA = Government National Mortgage Association TOCs = Tender Option Certificates
HDC = Housing Development Corporation
IDA = Industrial Development Authority
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE:
- ------------------------------------------------------------------
State Value % of Portfolio
- ------------------------------------------------------------------
New York $368,261,554 96.84%
Puerto Rico 12,000,000 3.16
- ------------------------------------------------------------------
Total $380,261,554 100.00%
- ------------------------------------------------------------------
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The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2007
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)................................ $ 380,261,554
Cash................................................................................. 1,764,048
Accrued interest receivable.......................................................... 3,062,353
Prepaid expenses..................................................................... 19,589
---------------
Total assets.............................................................. 385,107,544
---------------
LIABILITIES
Payable to affiliates*............................................................... 222,548
Accrued expenses..................................................................... 172,485
Dividends payable.................................................................... 328,105
Other payable........................................................................ 4,613
---------------
Total liabilities......................................................... 727,751
---------------
Net assets........................................................................... $ 384,379,793
===============
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3).............................. $ 384,387,402
Accumulated net realized loss........................................................ (7,609)
---------------
Net assets........................................................................... $ 384,379,793
===============
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Class A Shares.............................. $218,850,091 218,855,384 $1.00
Class B Shares.............................. $32,597,375 32,598,164 $1.00
Victory Shares.............................. $60,513,666 60,515,130 $1.00
Advantage Shares............................ $72,418,661 72,420,413 $1.00
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
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The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2007
===============================================================================
INVESTMENT INCOME
Income:
Interest.................................................................. $ 15,302,943
-----------------
Expenses: (Note 2)
Investment management fee................................................. 1,286,925
Administration fee........................................................ 900,848
Distribution fee (Advantage Shares)....................................... 310,418
Shareholder servicing fee (Class A)....................................... 556,856
Shareholder servicing fee (Victory Shares)................................ 96,829
Shareholder servicing fee (Advantage Shares).............................. 172,455
Custodian expenses........................................................ 28,855
Shareholder servicing and related shareholder expenses+................... 251,260
Legal, compliance and filing fees......................................... 136,296
Audit and accounting...................................................... 178,012
Directors' fees and expenses.............................................. 40,018
Other expenses............................................................ 24,130
-----------------
Total expenses........................................................ 3,982,902
Less: Expenses paid indirectly (Note 2).............................. (11,958)
Fees Waived (Note 2)........................................... (203,997)
-----------------
Net expenses ............................................................. 3,766,947
-----------------
Net investment income........................................................ 11,535,996
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments............................................. 4,432
-----------------
Increase in net assets from operations....................................... $ 11,540,428
=================
+ Includes class specific transfer agency expenses of $145,940, $19,096 and
$24,228 for Class A, Class B and Victory Shares, respectively.
- -------------------------------------------------------------------------------
The accompanying notes arwe an integral part of these financial statements.
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED APRIL 30, 2007 AND 2006
===============================================================================
2007 2006
INCREASE (DECREASE) IN NET ASSETS ------ ------
Operations:
Net investment income......................................... $ 11,535,996 $ 8,890,533
Net realized gain (loss) on investments....................... 4,432 13,482
---------------- ----------------
Increase in net assets from operations........................ 11,540,428 8,904,015
Dividends to shareholders from net investment income*:
Class A....................................................... (7,502,067) (5,713,754)
Class B....................................................... (960,061) (1,081,238)
Victory Shares................................................ (1,313,346) (822,999)
Advantage Shares.............................................. (1,760,522) (1,272,542)
---------------- ----------------
Total dividends to shareholders............................. (11,535,996) (8,890,533)
Distributions to shareholders from realized gain (loss) on investments:
Class A....................................................... -0- (4,822)
Class B....................................................... -0- (692)
Victory Shares................................................ -0- (827)
Advantage Shares.............................................. -0- (1,253)
---------------- ----------------
Total distributions to shareholders........................... -0- (7,594)
Capital share transactions (Note 3):
Class A....................................................... (66,400,934) 2,109,963
Class B....................................................... (732,412) (6,502,006)
Victory Shares................................................ 21,001,609 (6,473,806)
Advantage Shares.............................................. 5,737,883 (4,883,520)
---------------- ----------------
Total capital share transactions............................ (40,393,854) (15,749,369)
---------------- ----------------
Total increase (decrease)................................. (40,389,422) (15,743,481)
Net assets:
Beginning of year............................................. 424,769,215 440,512,696
---------------- ----------------
End of year................................................... $ 384,379,793 $ 424,769,215
================ ================
Undistributed net investment income............................... $ -0- $ -0-
================ ================
* Designated as exempt-interest dividends for federal income tax purposes.
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
===============================================================================
1. Summary of Accounting Policies
New York Daily Tax Free Income Fund, Inc. (the "Fund") is a non-diversified,
open-end management investment company registered under the Investment Company
Act of 1940. The Fund is a short-term, tax exempt money market fund. The Fund
has four classes of stock authorized, Class A, Class B, Victory and Advantage
New York Tax Exempt Liquidity Fund Shares ("Advantage Shares"). The Class A,
Victory and Advantage Shares are subject to a service fee pursuant to the
Distribution and Service Plan. The Advantage Shares are also subject to an
additional distribution fee pursuant to a Shareholder Servicing Agreement. The
Class B shares are not subject to a service fee. Additionally, the Fund may
allocate among its classes certain expenses to the extent allowable including
transfer agent fees, government registration fees, certain printing and postage
costs, and certain administrative and legal expenses. Class specific expenses of
the Fund are limited to shareholder servicing fees, distribution fees and
transfer agent expenses. Income, expenses (other than expenses attributable to a
specific class), and realized and unrealized gains or losses on investments are
allocated to each class of shares based on its relative net assets. In all other
respects, all share classes represent the same interest in the income and assets
of the Fund. The Advantage Shares commenced operations on November 22, 2002.
The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America for investment
companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost, which approximates market value.
Under this valuation method, a portfolio instrument is valued at cost and
any discount or premium is amortized on a constant basis to the maturity of
the instrument. If fluctuating interest rates cause the market value of the
Fund's portfolio to deviate more than 1/2 of 1% from the value determined
on the basis of amortized cost, the Board of Directors will consider
whether any action should be initiated. The maturity of variable rate
demand instruments is deemed to be the longer of the period required before
the Fund is entitled to receive payment of the principal amount or the
period remaining until the next interest rate adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable (if any) income to its shareholders.
Therefore, no provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from net investment income (excluding long-term capital gains and
losses, if any, and amortization of market discount) are declared daily and
paid monthly. Net realized capital gains, if any, are distributed at least
annually and in no event later than 60 days after the end of the Fund's
fiscal year.
d) Use of Estimates -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
1. Summary of Accounting Policies (Continued)
e) General -
Securities transactions are recorded on a trade date basis. Interest
income, including accretion of discount and amortization of premium, is
accrued as earned. Realized gains and losses from securities transactions
are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management LLC (the "Manager"), equal to an annual
rate of .30% of the Fund's average daily net assets.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .21% of the Fund's average daily net assets.
Pursuant to the Fund's Distribution Plans adopted under Securities and Exchange
Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc. (the
"Distributor"), an affiliate of the Manager, have entered into a Distribution
Agreement and a Shareholder Servicing Agreement, with respect to the Class A,
Victory and Advantage Shares of the Fund. For its services under the Shareholder
Servicing Agreement, the Distributor receives from the Fund a fee equal to .20%
of the Fund's average daily net assets with respect to the Class A and Victory
Shares and a service fee of .25% with respect to the Advantage Shares. In
addition, for its services under the Distribution Agreement, the Distributor
receives .45% per annum in distribution fees of the Advantage Shares' average
daily net assets. There were no additional expenses borne by the Fund pursuant
to the Distribution Plan.
For the year ended April 30, 2007 the Distributor voluntarily waived the
following fees:
Distribution fees - Advantage Shares $ 35,400
Shareholder servicing fees - Advantage Shares 168,597
---------
Total fees waived $ 203,997
=========
The Distributor has no right to recoup prior waivers.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$7,000 per annum, plus a fee of $1,375 per Board of Directors meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $179,988 paid to Reich & Tang
Services, Inc., (the "Transfer Agent") an affiliate of the Manager, as
shareholder servicing agent for the Fund. Pursuant to the Transfer Agency
Agreement, the Transfer Agent receives a fee of $17.40 per account per year or a
minimum of 0.05% of the monthly average net assets of the Class A, Class B and
Victory shares of the Fund. For the year ended April 30, 2007, these fees
amounted to an annual rate of 0.05% of the monthly average net assets of the
Class A, Class B and Victory shares of the Fund.
For the year ended April 30, 2007, the breakdown of expenses paid indirectly by
the Fund was as follows:
Custodian expenses $ 11,816
Shareholder servicing and related shareholder expenses 142
=========
Total $ 11,958
=========
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
3. Compensating Balance Agreement
Reich & Tang and the Bank of New York have entered into a compensating balance
arrangement, which would allow the Fund to compensate the Bank for any
overdrafts by maintaining a positive cash balance the next day. Conversely, on
any day the Fund maintains a positive balance it will be allowed to overdraw the
account as compensation. In both cases Federal Reserve requirements, currently
10%, will be assessed. Therefore, all overdrafts must be compensated at 100% of
the total and all positive balances will allow for an overdraft of 90% of the
total.
4. Capital Stock
At April 30, 2007, 20,000,000,000 shares of $.001 par value stock were
authorized. Transactions in capital stock, all at $1.00 per share, were as
follows:
Year Year
Ended Ended
April 30, 2007 April 30, 2006
--------------- --------------
Class A
- -------
Sold...................................... 1,460,063,703 1,159,330,082
Issued on reinvestment of dividends....... 5,221,475 3,197,390
Redeemed.................................. (1,531,686,112) (1,160,417,509)
--------------- --------------
Net increase (decrease)................... (66,400,934) 2,109,963
=============== ==============
Class B
- -------
Sold...................................... 152,017,566 140,490,280
Issued on reinvestment of dividends....... 956,167 1,074,155
Redeemed.................................. (153,706,145) (148,066,441)
--------------- --------------
Net increase (decrease)................... (732,412) (6,502,006)
=============== ==============
Victory Shares
- --------------
Sold...................................... 78,711,451 59,988,952
Issued on reinvestment of dividends....... 1,313,682 821,363
Redeemed.................................. (59,023,524) (67,284,121)
--------------- --------------
Net increase (decrease)................... 21,001,609 (6,473,806)
=============== ==============
Advantage Shares
- ----------------
Sold...................................... 173,247,949 143,309,455
Issued on reinvestment of dividends....... 1,746,111 1,255,414
Redeemed.................................. (169,256,177) (149,448,389)
--------------- --------------
Net increase (decrease)................... 5,737,883 (4,883,520)
=============== ==============
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
5. Tax Information
The tax character of distributions paid during the years ended April 30, 2007
and 2006 were as follows:
2007 2006
------------ ------------
Tax-exempt income............................... $ 11,535,996 $ 8,890,533
Long-term capital gains......................... -0- 7,594
------------ ------------
Total distributions............................. $ 11,535,996 $ 8,898,127
============ ============
At April 30, 2007, the Fund had unused capital loss carry forwards of $7,609
available for Federal Income Tax purposes to be applied against future gains, if
any. If not applied against future gains, $7,609 will expire in 2014.
During the year ended April 30, 2007, the Fund utilized $4,432 of its carried
forward capital losses.
At April 30, 2007, the Fund had no ordinary distributable earnings.
In July 2006, the Financial Accounting Standards Board (the "FASB") issued
Interpretation No.48, "Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109" ("the Interpretation"). The
Interpretation establishes for all entities, including pass-through entities
such as the Fund, a minimum threshold for financial statement recognition of the
benefit of positions taken in filling tax returns (including whether an entity
is taxable in a particular jurisdiction) and requires certain expanded tax
disclosures. FIN 48 is effective for fiscal years beginning after December 15,
2006. On December 22, 2006, the Securities and Exchange Commission notified the
industry that the implementation of the Interpretation must be incorporated no
later than the last day on which a Net Assets Value is calculated preceding the
Fund's 2007 semi-annual report. Management has begun to evaluate the application
of the Interpretation to the Fund, and is not in a position at this time to
estimate the significance of its impact, if any, on the Fund's financial
statements.
6. Concentration of Credit Risk
The Fund invests primarily in obligations of political subdivisions of the State
of New York and, accordingly, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 76% of these investments are
further secured, as to principal and interest, by credit enhancements such as
letters of credit, municipal bond insurance, and guarantees issued by financial
institutions. The Fund maintains a policy of monitoring its exposure by
reviewing the credit worthiness of the issuers, as well as that of the financial
institutions issuing the credit enhancements, and by limiting the amount of
holdings with credit enhancements from one financial institution.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
7. Financial Highlights
For the Year Ended April 30,
--------------------------------------------------------------
Class A Shares
- ---------------- 2007 2006 2005 2004 2003
--------- -------- ------- ------- --------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income.................................... 0.027 0.019 0.007 0.002 0.006
Net realized and unrealized gain (loss) on investments... -- 0.000 -- -- 0.000
-------- -------- -------- -------- --------
Total from investment operations......................... 0.027 0.019 0.007 0.002 0.006
Less distributions from:
Dividends from net investment income..................... (0.027) (0.019) (0.007) (0.002) (0.006)
Net realized gain (loss) on investments.................. -- (0.000) -- -- (0.000)
-------- -------- -------- -------- --------
Total distributions...................................... (0.027) (0.019) (0.007) (0.002) (0.006)
-------- -------- -------- -------- --------
Net asset value, end of year................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................................... 2.73% 1.93% 0.70% 0.21% 0.59%
Ratios/Supplemental Data
Net assets, end of year (000's)................................ $218,850 $285,247 $283,134 $296,871 $324,086
Ratios to average net assets:
Expenses (a)............................................. 0.87% 0.86% 0.86% 0.83% 0.82%
Net investment income.................................... 2.69% 1.91% 0.70% 0.21% 0.59%
Expenses paid indirectly................................. 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
7. Financial Highlights (Continued)
For the Year Ended April 30,
--------------------------------------------------------------
Class B Shares
- ---------------- 2007 2006 2005 2004 2003
--------- -------- ------- ------- --------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income.................................... 0.029 0.021 0.009 0.004 0.008
Net realized and unrealized gain (loss) on investments... -- 0.000 -- -- 0.000
-------- -------- -------- -------- --------
Total from investment operations......................... 0.029 0.021 0.009 0.004 0.008
Less distributions from:
Dividends from net investment income..................... (0.029) (0.021) (0.009) (0.004) (0.008)
Net realized gain (loss) on investments.................. -- (0.000) -- -- (0.000)
-------- -------- -------- -------- --------
Total distributions...................................... (0.029) (0.021) (0.009) (0.004) (0.008)
-------- -------- -------- -------- --------
Net asset value, end of year................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................................... 2.93% 2.14% 0.90% 0.41% 0.79%
Ratios/Supplemental Data
Net assets, end of year (000's)................................ $ 32,597 $ 33,330 $ 39,831 $ 51,411 $ 46,966
Ratios to average net assets:
Expenses (a)............................................. 0.68% 0.67% 0.66% 0.63% 0.61%
Net investment income.................................... 2.90% 2.14% 0.88% 0.40% 0.77%
Expenses paid indirectly................................. 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
7. Financial Highlights (Continued)
For the Year Ended April 30,
--------------------------------------------------------------
Victory Shares
- ---------------- 2007 2006 2005 2004 2003
--------- -------- ------- ------- --------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income.................................... 0.027 0.019 0.007 0.002 0.006
Net realized and unrealized gain (loss) on investments... -- 0.000 -- -- 0.000
-------- -------- -------- -------- --------
Total from investment operations......................... 0.027 0.019 0.007 0.002 0.006
Less distributions from:
Dividends from net investment income..................... (0.027) (0.019) (0.007) (0.002) (0.006)
Net realized gain (loss) on investments.................. -- (0.000) -- -- (0.000)
-------- -------- -------- -------- --------
Total distributions...................................... (0.027) (0.019) (0.007) (0.002) (0.006)
-------- -------- -------- -------- --------
Net asset value, end of year................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................................... 2.74% 1.93% 0.70% 0.21% 0.59%
Ratios/Supplemental Data
Net assets, end of year (000's)................................ $ 60,514 $ 39,512 $ 45,985 $ 53,616 $ 79,783
Ratios to average net assets:
Expenses (a)............................................. 0.87% 0.86% 0.86% 0.83% 0.82%
Net investment income.................................... 2.71% 1.91% 0.70% 0.21% 0.59%
Expenses paid indirectly................................. 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
7. Financial Highlights (Continued)
November 22, 2002
(Commencement of
Years Ended April 30, Offering) to
-----------------------------------------
Advantage shares 2007 2006 2005 2004 April 30, 2003
- ----------------- -------- -------- -------- -------- -----------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- ---------
Income from investment operations:
Net investment income.................................... 0.025 0.018 0.006 0.001 0.001
Net realized and unrealized gain (loss)
on investments........................................ -- 0.000 -- -- 0.000
-------- -------- -------- -------- ---------
Total from investment operations......................... 0.025 0.018 0.006 0.001 0.001
-------- -------- -------- -------- ---------
Less distributions:
Dividends from net investment income..................... (0.025) (0.018) (0.006) (0.001) (0.001)
Net realized gain(loss) on investments................... -- (0.000) -- -- (0.000)
-------- -------- -------- -------- ---------
Total distribution....................................... (0.025) (0.018) (0.006) (0.001) (0.001)
-------- -------- -------- -------- ---------
Net asset value, end of period.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== =========
Total Return................................................ 2.58% 1.79% 0.61% 0.15% 0.15%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........................... $ 72,419 $ 66,680 $ 71,563 $ 36,685 $ 57,249
Ratios to average net assets:
Expenses, net of fees waived (b)......................... 1.02% 1.01% 0.95% 0.89% 0.90%(c)
Net investment income.................................... 2.55% 1.77% 0.63% 0.14% 0.33%(c)
Expenses paid indirectly................................. 0.00% 0.00% 0.00% 0.00% 0.00%(c)
Distribution and shareholder servicing fees waived....... 0.30% 0.31% 0.36% 0.39% 0.37%(c)
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
===============================================================================
To the Board of Directors and Shareholders of
New York Daily Tax Free Income Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of New York Daily Tax Free Income
Fund, Inc. (the "Fund") at April 30, 2007, 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 periods
presented, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at April
30, 2007 by correspondence with the custodian, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
June 22, 2007
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION
(UNAUDITED)
===============================================================================
ADDITIONAL INFORMATION ABOUT PORTFOLIO HOLDINGS
The Fund is required to file its complete schedule of portfolio holdings with
the Securities and Exchange Commission ("SEC") on Form N-Q for its first and
third fiscal quarters. The Fund's Form N-Q is available without charge on the
SEC's website (http://www.sec.gov) or by calling the Fund toll free at (800)
433-1918. You can also obtain copies of the Fund's Form N-Q by visiting the
SEC's Public Reference Room in Washington, DC (please call the SEC at (800)
732-0330 for information on the operation of the Public Reference Room).
INFORMATION ABOUT PROXY VOTING
Information regarding the Fund's proxy voting record for the 12 month period
ending June 30 of each year is filed with the SEC on Form N-PX no later than
August 31 of each year. The Fund's Form N-PX is available without charge, upon
request, by calling the Fund at (800) 433-1918 and on the SEC's website
(http://www.sec.gov). The Fund does not presently invest in voting securities
and has therefore not adopted proxy voting policies and procedures.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT
New York Daily Tax Free Income Fund, Inc.
On March 8, 2007, the Board of Directors approved the continuance of the
Investment Management Contract. In determining whether to approve the
continuance of the Investment Management Contract, the Directors considered the
following information:
1) The nature,extent and quality of services provided by the Manager.
The Directors reviewed in detail the nature and extent of the services provided
by the Manager under the terms of the Fund's Investment Management Contract and
the quality of those services over the past year. The Directors noted that the
services include managing the investment and reinvestment of the Fund's assets;
the provision of reports to the Board regarding changes in portfolio holdings,
important developments affecting the entities whose securities are included in
the Fund's portfolio, and the money market industry and the economy in general;
and the compensation of all officers, directors and employees of the Fund who
are officers of the Manager or its affiliates. The Board also observed that the
Manager provides various administrative services to the Fund pursuant to the
terms of a separate Administrative Services Contract and considered the nature,
extent and quality of services provided under that agreement as well. The
Directors evaluated these factors based on their direct experience with the
Manager and in consultation with counsel to the independent Directors and Fund
counsel. The Directors concluded that the nature and extent of the services
provided under the Investment Management Contract were reasonable and
appropriate in relation to the management fee, that the level of services
provided by the Manager had not diminished over the past year and that the
quality of services continues to be high. The Directors reviewed the personnel
responsible for providing advisory services to the Fund and concluded, based on
their experience and interaction with the Manager, that (i) the Manager was able
to retain quality portfolio managers and other personnel; (ii) the Manager
exhibited a high level of diligence and attention to detail in carrying out its
advisory responsibilities under the Investment Management Contract; (iii) the
Manager was responsive to requests of the Directors; and (iv) the Manager had
kept the Directors apprised of developments relating to the Fund and the
industry in general. The Directors also focused on the Manager's reputation and
long-standing relationship with the Fund and, in particular, the experience of
the Manager in advising money market funds. The Directors also noted the high
quality of services provided by the Manager under the Administrative Services
Contract.
2) The performance of the Fund and the Manager.
The Directors reviewed the investment performance of the Fund, both on an
absolute basis and as compared to various Lipper peer group categories on a
gross basis for the one-month, one-, three-, five- and ten-year periods ended
October 31, 2006. The peer group categories included: (i) an asset-based peer
group of New York tax-exempt money market funds, as classified by Lipper, as the
peer group for the Fund's Class A shares ("expense group 1"); (ii) a competitors
class peer group, representing other New York tax-exempt funds that are
considered to be competitors of the Fund's Class A shares with similar
distribution channels ("expense group 2"); and (iii) a peer group of all funds
in the Lipper universe with similar load-type to the Fund regardless of asset
size ("expense universe"). These peer groups are collectively referred to as the
"Peer Groups." The Manager advised the Board that it does not advise or
subadvise: (i) other funds with a similar investment policy to the Fund's; or
(ii) other types of accounts, such as institutional and pension accounts, with a
similar investment policy to the Fund's. The Directors used the Fund's
performance against the Peer Groups to provide objective comparative benchmarks
against which they could assess the Fund's performance. The Directors considered
those comparisons as helpful in their assessment as to whether the Manager was
obtaining for the Fund's shareholders the performance that was available in the
marketplace given the Fund's
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, continued
2) The performance of the Fund and the Manager., continued
investment objectives, strategies, limitations and restrictions. In particular,
the Board noted that the gross performance of the Fund against all the Peer
Groups was satisfactory and that the Fund's ranking against the Lipper
performance universe (which includes all funds in the expense universe) was in
the 4th quintile for the one-month and three-year periods, 5th quintile for the
one-year period, 3rd quintile for the five-year period and the 2nd quintile for
the ten-year period (lst quintile being the highest).
In connection with its assessment of the performance of the Manager, the
Directors considered the Manager's financial condition and whether it has the
resources necessary to continue to carry out its obligations under the
Investment Management Contract. The Directors took into account, in this regard,
the payments made by the Manager from its own resources to securities brokers,
banks and financial institutions or other industry professionals or
organizations whose customers are shareholders of the Fund ("Participating
Organizations") in connection with distribution assistance and shareholder
servicing provided by the Participating Organizations. The Directors concluded
that the Manager had the financial resources necessary to continue to perform
its obligations under the Investment Management Contract and to continue to
provide the high quality services that it had provided to the Fund to date.
3) The cost of the advisory services and the profits to the Manager
and its affiliates from the relationship with the Fund.
In connection with the Directors' consideration of the level of the management
fee, the Directors considered a number of factors. The Directors compared the
level of the management fee for the Fund against the advisory fees charged to
funds in the Peer Groups and the Fund's combined management-administrative fees
against fees covering both advisory and administrative services charged to the
funds in the Peer Groups. The Directors also considered comparative total fund
expenses of the Class A shares of the Fund and the Peer Groups. The Directors
used this combined fee information and total expense data as a guide to help
assess the reasonableness of the Fund's management fee, although they
acknowledged that it was difficult to make precise comparisons with other funds
since the exact nature of services provided under the Peer Group fund agreements
is often not apparent. The Directors also viewed the Peer Group fee information
as a whole as useful in assessing whether the Manager was providing services at
a cost that was competitive with other, similar funds. In assessing this
information, the Directors considered both the comparative contract rates as
well as the level of the management fees after waivers and/or reimbursements.
The Board noted that the contract rates of the Fund's management fee and
combined fees (management and administrative) were reasonable when compared to
the Peer Groups. The Board also acknowledged that the differences in expense
ratios as between the various shares classes of the Fund was primarily due to
the differences in 12b-1 fees payable by the classes in connection with the
distribution channels through which each class was sold. The Directors also
noted that the Manager did not advise or sub-advise any other registered
investment companies or other types of accounts, such as institutional or
pension accounts, with a similar investment policies to the Fund. The Directors
concluded that the level of the management fee was reasonable in light of these
factors.
The Directors also considered the profitability to the Manager and its
affiliates arising out of their relationships with the Fund. In this regard the
Directors reviewed profitability data that was distributed at the meeting
relating to the Manager and its affiliates for the year ended December 31, 2005,
and were provided with a verbal update as to the range of profitability as of
December 31, 2006. The Manager assured the Board that final profitability data
would be distributed to the Board as soon as it was finalized. The Directors
considered revenues received by the Manager under the Investment Management
Contract and Administrative Services Contract as well as revenues received by
the Manager's affiliates under the 12b-1 Plans and related agreements, Transfer
Agency Agreement and
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, continued
3) The cost of the advisory services and the profits to the Manager
and its affiliates from the relationship with the Fund, continued
revenues derived from Reich & Tang's cash management business (e.g. checking and
debit card services that are offered by Reich & Tang to Fund shareholders
through certain Participating Organizations). The Directors concluded that the
profitability of the Fund to the Manager and its affiliates was reasonable.
4) The extent to which economies of scale will be realized as the Fund
grows and whether fee levels reflect those economies of scale.
With respect to the Directors' consideration of economies of scale, the
Directors discussed with the Manager whether economies of scale would be
realized by it in its management of the Fund at higher asset levels. The
Directors also discussed with the Manager whether certain of the Manager's costs
would increase if asset levels rise and observed that as assets rise, the
Manager and its affiliates may be required to pay increased fees to
Participating Organizations. The Directors also reviewed the Peer Group data to
assess whether the Peer Group funds had advisory or administrative fee
breakpoints and, if so, at what asset levels. The Directors concluded that they
were unable to assess at this time whether economies of scale would be realized
if the Fund were to experience significant asset growth. In the event there were
significant asset growth in the future, the Directors determined to reassess
whether the management fee appropriately took into account any economies of
scale that had been realized as a result of that growth.
5) Other Factors.
In addition to the above factors, the Directors acknowledged the importance of
the ability of the Manager's affiliate, the distributor, to market the Fund
through its distribution networks, including its customer service and
administration system with banks and bank customers.
Based on a consideration of all these factors in their totality, the Directors,
including all of the disinterested Directors, determined that the Fund's
management fee was fair and reasonable with respect to the quality of services
that the Manager provides and in light of the other factors described above that
the Directors deemed relevant. The Directors based their decision on evaluations
of all these factors as a whole and did not consider any one factor as
all-important or controlling. The disinterested Directors were also assisted by
the advice of independent counsel in making this determination.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================
Directors and Officers Information
April 30, 2007(1)
- ---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
- --------------------- Position(s) Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
- ---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
- ------------------------------------ --------------- ------------------------------- ----------------- -----------------
Disinterested Directors:
- ------------------------------------ --------------- ------------------------------- ----------------- -----------------
- ---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
Edward A. Kuczmarksi, Director 1984 Certified Public Accountant Director of Director/Trustee
Age 57 and Partner of Hays & Company fourteen of the Empire
LLP since 1980. portfolios Builder Tax
Free Bond Fund
and ISI Funds
- ---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
- ---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
Caroline E. Newell, Director 1984 Director of the Park Avenue Director of one Trustee of the
Age 66 Church Day School since portfolio Empire Builder
2001. Director of Le Chateau Tax Free Bond
des Enfants and the American Fund
School in Switzerland, both
since 1990.
- ---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
- ---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
John P. Steines, Director 1984 Professor of Law, New York Director of one Trustee of the
Age 58 University School of Law portfolio Empire Builder
since 1980. Tax Free Bond
Fund
- ---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
Directors and Officers Information
April 30, 2007(1) (continued)
- ------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
- ----------------- Position(s) Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
- ------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
- ------------------------------ -------------- --------------------------------------------- ---------------- ------------
Interested
Directors/Officers:
- ------------------------------ -------------- --------------------------------------------- ---------------- ------------
- ------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
Steven W. Duff, President Manager and President of Reich & Tang Asset Director/Trustee None
Age 53 and Management, LLC ("RTAM, LLC"), a registered and/or Officer
Director(4) Since 1994 Investment Adviser and President of the of Eighteen
Mutual Funds Division of RTAM, LLC. portfolios
Associated with RTAM, LLC since 1994. Mr.
Duff is also President and Director/Trustee
of eight other funds in the Reich & Tang
Fund Complex, Director of Pax World Money
Market Fund, Inc., Principal Executive
Officer of Delafield Fund, Inc. and
President and Chief Executive Officer of
Tax Exempt Proceeds Fund, Inc. Mr. Duff
also serves as a Director of Reich & Tang
Services, Inc. and President and Director
of Reich & Tang Distributors, Inc.
- ------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
- ------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
Richard De Vice Executive Vice President and Chief Financial N/A N/A
Sanctis, Age 50 President Since 2005 Officer of RTAM LLC. Associated with RTAM,
Treasurer LLC since 1990. Mr. De Sanctis is Vice
and President of ten other funds in the Reich &
Assistant Tang Fund Complex, Vice President and
Secretary 1992 to 2004 Assistant Secretary of Cortland Trust, Inc.
and serves as Executive Vice President,
Chief Financial Officer and Director of
Reich & Tang Services, Inc. and Reich & Tang
Distributors, Inc. Prior to December 2004,
Mr. De Sanctis was Treasurer and Assistant
Secretary of eleven funds in the Reich &
Tang Fund Complex and Vice President,
Treasurer and Assistant Secretary of
Cortland Trust, Inc.
- ------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
- ------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
Molly Flewharty, Vice Senior Vice President of RTAM, LLC. N/A N/A
Age 56 President Since 1986 Associated with RTAM, LLC since 1977. Ms.
Flewharty is also Vice President of eleven
other funds in the Reich & Tang Fund
Complex. Ms. Flewharty also serves as
Senior Vice President of Reich & Tang
Distributors, Inc.
- ------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================
Directors and Officers Information
April 30, 2007(1) (continued)
- ------------------ ----------- -------------- --------------------------------------------- --------------- -------------
- ----------------- Position(s) Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
- ------------------ ----------- -------------- --------------------------------------------- --------------- -------------
- ------------------------------ -------------- --------------------------------------------- --------------- -------------
Interested
Directors/Officers:
- ------------------------------ -------------- --------------------------------------------- --------------- -------------
- ------------------ ----------- -------------- --------------------------------------------- --------------- -------------
Rosanne Holtzer, Chief Senior Vice President, Compliance Officer N/A N/A
Age 42 Compliance and Assistant Secretary of RTAM, LLC.
Officer Since 2005 Associated with RTAM, LLC since 1986. Ms.
Secretary Holtzer is also Chief Compliance Officer,
Assistant Since 2001 Secretary and Assistant Treasurer of eleven
Treasurer other funds in the Reich & Tang Fund
Since 1998 Complex. Ms. Holtzer also serves as Senior
Vice President, Assistant Secretary &
Compliance Officer of Reich & Tang
Distributors, Inc. and Senior Vice
President, Assistant Secretary & Chief
Compliance Officer of Reich & Tang
Services, Inc.
- ------------------ ----------- -------------- --------------------------------------------- --------------- -------------
- ------------------ ----------- -------------- --------------------------------------------- --------------- -------------
Michael Lydon, Vice Executive Vice President and Chief N/A N/A
Age 43 President Since 2005 Operations Officer of RTAM, LLC.
Associated with RTAM, LLC since January
2005. Mr. Lydon was Vice President at
Automatic Data Processing from July 2000 to
December 2004. Prior to July 2000, Mr.
Lydon was Executive Vice President and
Chief Information Officer of RTAM, LLC.
Mr. Lydon is also Vice President of eleven
other funds in the Reich & Tang Fund
Complex. Mr. Lydon also serves as
Executive Vice President and Chief
Operations Officer for Reich & Tang
Distributors, Inc. and Reich & Tang
Services, Inc.
- ------------------ ----------- -------------- --------------------------------------------- --------------- -------------
- ------------------ ----------- -------------- --------------------------------------------- --------------- -------------
Dana E. Messina, Vice Executive Vice President of RTAM, LLC. N/A N/A
Age 50 President Since 1986 Associated with RTAM, LLC since 1980. Ms.
Messina is also Vice President of eight
other funds in the Reich & Tang Fund
Complex. Ms. Messina also serves as
Executive Vice President of Reich & Tang
Distributors, Inc.
- ------------------ ----------- -------------- --------------------------------------------- --------------- -------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
Directors and Officers Information
April 30, 2007(1) (continued)
- ------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
- ----------------- Position(s) Term of Principal Occupation(s) Number of Other
Name, Address(2), Held with Office During Past Portfolios in Directorships
and Age Fund and Length of 5 Years Fund Complex held by
Time Overseen by Director
Served(3) Director
- ------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
- ----------------------------- ------------- ---------------------------------------------- ---------------- -------------
Interested
Directors/Officers:
- ----------------------------- ------------- ---------------------------------------------- ---------------- -------------
- ------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
Anthony Pace, Treasurer Vice President of RTAM, LLC since September N/A N/A
Age 41 and 2004. Mr. Pace was a Director of a Client
Assistant Service Group at GlobeOp Financial Services,
Secretary Since 2004 Inc. from May 2002 to August 2004 and
Controller/Director of Mutual Fund
Administration for Smith Barney Funds
Management LLC and Salomon Brothers Asset
Management Inc. from
1998 to May 2002. Mr. Pace is also Treasurer
and Assistant Secretary of eleven other funds
in the Reich & Tang Fund Complex.
- ------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
(1) The Statement of Additional Information includes additional information
about New York Daily Tax Free Income Fund, Inc. (the 'Fund")
directors/officers and is available, without charge, upon request by
calling the Fund's transfer agent at (800) 433-1918.
(2) The address for each of the above directors/officers of the Fund is Reich &
Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.
(3) Each Director will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Director and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Director resigns or retires, or a Director is
removed by the Board of Directors or shareholders, in accordance with the
Fund's Articles of Incorporation, as amended, and Amended and Restated
By-Laws. Each officer will hold office for an indefinite term until the
date he or she resigns or retires or until his/her successor is elected and
qualifies.
(4) Steven W. Duff is deemed an interested person of the Fund due to his
affiliation with RTAM, LLC, the Fund,s investment adviser.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK
DAILY
- ------------------------------------------------------- TAX FREE
This report is submitted for the general information INCOME
of the shareholders of the Fund. It is not authorized FUND, INC.
for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective
prospectus, which includes information regarding the
Fund's objectives and policies, experience of its
management, marketability of shares, and other
information.
- -------------------------------------------------------
New York Daily Tax Free Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
Custodian
The Bank of New York
2 Hanson Place, 7th Floor
Brooklyn, New York 11217
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc. Annual Report
600 Fifth Avenue April 30, 2007
New York, New York 10020
Distributor
Reich & Tang Distributor, Inc.
600 Fifth Avenue
New York, New York 10020
NY 04/07A
ITEM 2: CODE OF ETHICS
The registrant has adopted a Code of Ethics applicable to its Principal
Executive and Senior Financial Officers.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board of Directors has determined that there is an audit
committee financial expert serving on its audit committee, Edward A. Kuczmarski,
who is "independent," as defined in the instructions to this Item.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES
FYE 04/30/2007 FYE 04/30/2006
4(a) Audit Fees $ 31,500 $ 30,300
4(b) Audit Related Fees $ 0 $ 0
4(c) Tax Fees $ 3,600 $ 3,581
4(d) All Other Fees $ 0 $ 0
4(e)(1) The audit committee has adopted pre-approval policies and procedures
whereby the audit committee has pre-approved the provision of certain enumerated
tax services to the registrant by the registrant's principal accountant to the
extent the fee is less than $5,000 per occurrence.
4(e)(2) None.
4(f) Not applicable.
4(g) $3,600 and $49,500, respectively, were the amount of non-audit fees that
were billed by the registrant's accountant for services rendered to (i) the
registrant, and (ii) the registrant's investment adviser and any control person
of the adviser that provides ongoing services to the registrant for the fiscal
year ended April 30, 2007. $3,581 and $45,000, respectively, were the amount of
non-audit fees that were billed by the registrant's accountant for services
rendered to (i) the registrant, and (ii) the registrant's investment adviser and
any control person of the adviser that provides ongoing services to the
registrant for the fiscal year ended April 30, 2006.
4(h) The registrant's audit committee has considered whether its principal
accountant's provision of non-audit services that were rendered to the
registrant's investment adviser, and any control persons of 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
Not applicable.
ITEM 6: SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 9: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
ITEM 10: CONTROLS AND PROCEDURES
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and
have concluded that the registrant's disclosure controls and procedures
were effective in ensuring that information required to be disclosed by
the registrant in this Form N-CSR was recorded, processed, summarized
and reported on a timely basis.
(b) There were no changes in the registrant's internal controls over
financial reporting that occurred during the second fiscal quarter
covered by this report that have materially affected, or are reasonably
likely to affect, the registrant's internal controls over financial
reporting.
ITEM 11: EXHIBITS
(a)(1) Code of Ethics.
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
U.S.C. ss.1350.
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.
(Registrant) NEW YORK DAILY TAX FREE INCOME FUND, INC.
By (Signature and Title)* /s/Anthony Pace
Anthony Pace, Treasurer and Assistant Secretary
Date: July 6, 2007
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 (Signature and Title)* /s/Steven W. Duff
Steven W. Duff, President
Date: July 6, 2007
By (Signature and Title)* /s/Anthony Pace
Anthony Pace, Treasurer and Assistant Secretary
Date: July 6, 2007
* Print the name and title of each signing officer under his or her signature.