As filed with the Securities and Exchange Commission on July 9, 2008
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)
CHRISTINE MANNA
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, 2008
ITEM 1: REPORT TO STOCKHOLDERS
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NEW YORK
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. (212) 830-5200
===============================================================================
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, 2008.
As of April 30, 2008 the Fund had net assets of $400,366,335.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
[GRAPHIC OMITTED]
Michael P. Lydon
President
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
EXPENSE CHART
FOR THE SIX MONTHS ENDED APRIL 30, 2008
(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, 2007 through April 30, 2008.
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 11/1/07 4/30/08 During the Period Expense Ratio (a)
-----------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,010.40 $4.30 0.86%
-----------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.59 $4.32 0.86%
expenses)
-----------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Class B Shares Value 11/1/07 4/30/08 During the Period Expense Ratio (a)
-----------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,011.40 $3.30 0.66%
-----------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.58 $3.32 0.66%
expenses)
-----------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Advantage Shares Value 11/1/07 4/30/08 During the Period Expense Ratio (a)
-----------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,009.60 $5.10 1.02%
-----------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.79 $5.12 1.02%
expenses)
-----------------------------------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (November 1, 2007 through April
30, 2008), multiplied by 182/366 (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, 2008
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Tax Exempt Commercial Paper (2.00%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 New York Metropolitan Transportation Authority
LOC ABN AMRO Bank N. A. 08/12/08 3.05% $ 5,000,000 P-1 A-1+
3,000,000 New York State Environmental Quality
LOC Bayerische Landesbank / Landesbank Hessen 07/03/08 1.85 3,000,000 P-1 A-1+
----------- ------------
8,000,000 Total Tax Exempt Commercial Paper 8,000,000
----------- ------------
Tax Exempt General Obligation Notes & Bonds (c) (25.02%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Altmar-Parish-Williamstown CSD Oswego County, NY BAN 07/18/08 3.70% $ 3,001,845
1,134,423 Bethlehem CSD Albany County, NY CSD BAN 07/31/08 3.72 1,135,182
7,000,000 Board of Cooperative Education Services Sole Supervisory District
Counties of Cattaraugus, Allehany, Erie & Wyoming, NY RAN 06/30/08 2.95 7,003,394
8,000,000 Clarence CSD Erie County, NY TAN - Series 2007 06/26/08 3.71 8,003,480
2,720,500 Clarence CSD Erie County, NY BAN - Series 2007 07/24/08 3.71 2,722,270
10,000,000 Commack Union Free School District Suffolk County, NY TAN 06/30/08 3.66 10,005,398
5,500,000 Copiague Union Free School District Suffolk County, NY TAN 06/27/08 3.75 5,502,946
4,500,000 East Ramapo CSD Rockland County, NY CSD RAN - Series 2007 06/19/08 3.70 4,501,741
2,400,000 Eastchester Union Free School District Westchester County, NY BAN 07/11/08 3.71 2,402,421
13,750,000 Elmira City School District Chemung County, NY BAN 03/19/09 2.08 13,829,574
2,850,000 Hornell City School District Steuben County, NY RAN - Series 2007 06/19/08 3.70 2,852,022
5,000,000 Hudson Falls CSD Washington County, NY BAN - Series 2007 06/27/08 3.74 5,003,823
1,983,647 Lakeland CSD of Shrub Oak Westchester County, NY BAN 12/19/08 2.25 1,992,924
2,500,000 Livingston County, NY BAN 02/13/09 1.82 2,517,951
10,000,000 Middle Country CSD Suffolk County, NY TAN 06/30/08 3.63 10,005,885
2,572,537 North Syracuse CSD Onondaga County, NY BAN - Series 2007 08/22/08 3.65 2.577,129
2,500,000 Oneonta, NY CSD BAN 07/09/08 2.99 2,504,874
1,600,000 Pawling, NY CSD BAN 12/12/08 3.00 1,607,150
4,500,000 Pearl River Union Free School District Rockland County, NY 06/26/08 3.71 4,503,579
1,490,000 Plainedge Union Free School District Nassau County, NY TAN 07/30/08 3.72 1,491,004
6,000,000 Tompkins-Seneca-Tioga, NY (Board of Cooperative Educational
Services Sole Supervisory District) RAN 06/30/08 3.88 6,003,539
1,018,719 Victor CSD Ontario, Monroe & Wayne Counties, NY - Series 2007 06/15/08 3.65 1,019,266
----------- ------------
100,019,826 Total Tax Exempt General Obligation Notes & Bonds 100,187,397
----------- ------------
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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 (d) (72.85%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 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 11/01/10 2.43% $ 7,670,000 VMIG-1
6,000,000 BB & T Municipal Trust Floater Certificates - Series 1007
LOC Branch Banking And Trust Company 12/18/27 2.55 6,000,000 VMIG-1
1,370,000 BB & T Municipal Trust Floater Certificates - Series 4000
(Relating to Louisiana Public Facilities Authority Equipment and
Capital Facilities Pooled Loan Program RB - Series 2003A)
LOC Branch Banking And Trust Company 07/01/18 2.53 1,370,000 VMIG-1
5,000,000 Clinton County, NY IDA Civic Facility RB (Champlain Valley
Physician's Hospital Medical Center Project) - Series 2006 A
LOC KeyBank, N.A. 07/01/17 2.35 5,000,000 VMIG-1
5,000,000 Clinton County, NY IDA Civic Facility RB (Champlain Valley
Physician's Hospital Medical Center Project) - Series 2007 A
LOC KeyBank, N.A. 07/01/42 2.40 5,000,000 A-1
1,900,000 Dutchess County, NY IDA Civic Facility RB (Marist College
Civic Facility Project) - Series 2005 A
LOC Bank of New York Mellon 07/01/35 2.20 1,900,000 A-1+
12,155,000 Eagle Tax-Exempt Trust - Series 963206
(New York State Urban Development Corporation Project)
Collateralized by U.S. Government Securities 07/01/16 2.43 12,155,000 A-1+
5,800,000 Eagle Tax - Exempt Trust - Series 20070157 Class A Certificates
(New York City Municipal Water Finance Authority
Water and Sewer System RB - Fiscal 2006 Series A) 06/15/39 2.41 5,800,000 A-1
2,050,000 Erie County, NY IDA (Hauptman-Woodward Project) - Series 2004
LOC KeyBank, N.A. 03/01/24 2.49 2,050,000 P-1 A-1
2,890,000 Erie County, NY IDA Civic Facility RB
(Aspire of Western New York, Inc. Project) - Series 2008 (c)
LOC KeyBank, N.A. 01/01/18 2.49 2,890,000
5,000,000 Floating Rate Trust Receipts - Series 2006-K1 (New York State
Dormitory Authority, Columbia University RB - Series 2006A) 07/01/26 2.82 5,000,000 VMIG-1
900,000 Forest City New Rochelle, NY RB Certificate Trust - Series 2003
LOC Wachovia Bank, N.A. 06/01/11 2.50 900,000 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, 2008
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,665,000 Lehman Municipal Trust Receipts
Floating Rate Trust Receipts - Series 2005 M-2
(Dormitory Authority of the State of New York Hospital Insured
Mortgage RB 2004 Series A)
Insured by FSA 02/15/13 5.45% $ 3,665,000 VMIG-1
3,300,000 Lehman Municipal Trust Receipts Series 2007 Floating Rate
Trust Receipts - Series P69W (New Hampshire State Housing
Finance Authority Single Family Mortgage Acquistion RB) 07/01/39 3.18 3,300,000 VMIG-1
3,575,000 Long Island Power Authority, NY Electric System
Subordinated RB Subseries 2
LOC State Street Bank & Trust Company/Westdeutsche Landesbank 05/01/33 2.70 3,575,000 VMIG-1 A-1+
1,900,000 Metropolitan Transportation Authority, NY
Transportation RB - Series 2005E-1
LOC Fortis Bank 11/01/35 2.20 1,900,000 VMIG-1 A-1+
13,000,000 Metropolitan Transportation Authority, NY
Transportation RB - Series 2005E-2
LOC Fortis Bank 11/01/35 2.35 13,000,000 VMIG-1 A-1+
3,000,000 Monroe County, NY IDA Civic Facilities RB
(Depaul Properties, Inc. Project) - Series 2006
LOC KeyBank, N.A. 06/01/26 2.35 3,000,000 VMIG-1
2,000,000 Morgan Stanley Floating Rate Trust Certificates - Series 2006-1492
(Dormitory Authority of the State of New York RB
Cabrini of Westchester Project, Series 2006A)
Collateralized by GNMA Securities 02/15/41 2.46 2,000,000 A-1
5,095,000 Nassau County, NY IDA IDRB
(The Jade Corporation Project) - Series 2007
LOC Wilmington Trust Company 08/01/32 2.53 5,095,000 VMIG-1
3,400,000 Newburgh, NY IDA Civil Facility RB (Community Development
Properties Dubois St. II Inc. Project) - Series 2005A
LOC KeyBank, N.A. 10/01/30 2.45 3,400,000 VMIG-1
1,000,000 New York City, NY Capital Resource Corporation RB
(Loan Enhanced Assistance Program) - Sereis 2006A
LOC Bank of America 01/01/26 2.39 1,000,000 VMIG-1
1,400,000 New York City, NY GO - Fiscal 1994, Series A-5
LOC KBC Bank 08/01/15 2.29 1,400,000 VMIG-1 A-1+
400,000 New York City, NY GO - Fiscal 1994, Series A-5
LOC KBC Bank 08/01/16 2.29 400,000 VMIG-1 A-1
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The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 4,575,000 New York City, NY GO - Fiscal 1994, Series A-6
LOC Landesbank Hessen - Thuringen Girozentrale 08/01/19 2.70% $ 4,575,000 VMIG-1 A-1+
8,770,000 New York City, NY GO - Fiscal 1994 Series A-9
LOC JPMorgan Chase Bank, N.A. 08/01/18 2.65 8,770,000 VMIG-1 A-1+
1,900,000 New York City, NY GO - Fiscal 1994, Series B-9
LOC JPMorgan Chase Bank, N.A. 08/15/23 3.00 1,900,000 VMIG-1 A-1+
700,000 New York City, NY GO - Fiscal 1995 , Series F-2
LOC Depfa Bank PLC 02/15/12 2.35 700,000 VMIG-1 A-1+
4,000,000 New York City, NY GO - Fiscal 1995, Series F-3
LOC Morgan Guaranty Trust Company 02/15/13 2.42 4,000,000 VMIG-1 A-1+
5,650,000 New York City, NY GO - Fiscal 2003 Series C-5
LOC Bank of New York Mellon 08/01/20 2.45 5,650,000 VMIG-1 A-1+
6,060,000 New York City, NY GO - Fiscal 2004, Series A-3
LOC BNP Paribas 08/01/31 2.60 6,060,000 VMIG-1 A-1+
1,770,000 New York City, NY GO - Fiscal 2004 Series A-6
LOC Landesbank Baden - Wurttemberg 08/01/31 2.45 1,770,000 VMIG-1 A-1+
2,505,000 New York City, NY GO - Fiscal 2004 Series H-2
LOC Bank of New York Mellon 03/01/34 2.46 2,505,000 VMIG-1 A-1+
1,075,000 New York City, NY GO - Fiscal 2006 Series E-3
LOC Bank of America 08/01/34 2.37 1,075,000 VMIG-1 A-1+
5,000,000 New York City, NY GO - Fiscal 2006 Series F-3
LOC Royal Bank of Scotland PLC 09/01/35 2.20 5,000,000 VMIG-1 A-1+
700,000 New York City, NY GO - Fiscal 2006 Series I-3 04/01/36 2.53 700,000 VMIG-1 A-1+
3,000,000 New York City, NY GO - Fiscal 2006 Series I-8
LOC Bank of America 04/01/36 2.55 3,000,000 VMIG-1 A-1+
2,400,000 New York City, NY HDC Multi-Family Mortgage RB
(Manhattan Court Development) - 2004 Series A
LOC Citibank, N.A. 06/01/36 2.63 2,400,000 A-1+
6,300,000 New York City, NY HDC Multi-Family Mortgage RB
(Urban Horizons II-A) - 2005 Series A
LOC Citibank, N.A. 01/01/38 2.55 6,300,000 A-1+
1,000,000 New York City, NY HDC Multi-Family Mortgage RB
(West 48th Street Development) - 2001 Series A
Guaranteed by Federal National Mortgage Association 01/15/34 2.52 1,000,000 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, 2008
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 4,000,000 New York City, NY HDC Multi-Family Rental Housing RB
(90 West St) - 2006 Series A
Guaranteed by Federal National Mortgage Association 03/15/36 2.60% $ 4,000,000 A-1+
980,000 New York City, NY IDA Civic Facility RB
(Epiphany Community Nursery School Project) - Series 1997
LOC Bank of New York Mellon 05/01/11 2.58 980,000 VMIG-1
4,285,000 New York City, NY IDA Civic Facility RB
(Jamaica First Parking, LLC Project) - Series 2001
LOC JPMorgan Chase Bank, N.A. 03/01/31 2.20 4,285,000 A-1+
7,995,000 New York City, NY IDA Civic Facility RB
(Jamaica First Parking, LLC Project) - Series 2004
LOC JPMorgan Chase Bank, N.A. 03/01/34 2.20 7,995,000 A-1+
3,865,000 New York City, NY IDA Civic Facility RB (The Convent of the
Sacred Heart School of New York Project) - Series 2002
LOC Wachovia Bank, N.A. 11/01/32 2.37 3,865,000 VMIG-1
1,246,400 New York City, NY IDA IDRB (Abigal Press, Inc. Project)-Series 2002
LOC JPMorgan Chase Bank, N.A. 12/01/18 3.50 1,246,400 A-1+
8,300,000 New York City, NY IDA Liberty RB
(FC Hanson Office Associates, LLC Project) - Series 2004
LOC Lloyds PLC 12/01/39 2.20 8,300,000 VMIG-1
1,150,000 New York City, NY Transitional Finance Authority
New York City Recovery Bonds Fiscal 2003 Series 1, Subseries 1B 11/01/22 2.65 1,150,000 VMIG-1 A-1+
2,250,000 New York City, NY Transitional Finance Authority
New York City Recovery Bonds Fiscal 2003 Series 3, Subseries 3B 11/01/22 2.66 2,250,000 VMIG-1 A-1+
490,000 New York City, NY Trust for Cultural Resources RB
(The Museum of Broadcasting) - Series 1989
LOC KBC Bank 05/01/14 2.35 490,000 VMIG-1 A-1+
4,900,000 New York State Dormitory Authority RB
(Catholic Health System Obligated Group) - Series 2006C
LOC HSBC Bank US 07/01/22 2.38 4,900,000 VMIG-1
5,000,000 New York Dormitory Authority RB (Cornell Univeristy)-Series 2008B 07/01/37 2.48 5,000,000 VMIG-1 A-1+
6,700,000 New York State Dormitory Authority RB
(St Luke's Roosevelt Hospital Center) - Series 2005
Insured by FHA 08/15/25 2.85 6,700,000 A-1
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The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 New York State Energy Research & Development Authority
Electric Facilities RB
(Long Island Lighting Company Project) - Series 1997A
LOC Royal Bank of Scotland PLC 12/01/27 2.75% $ 1,000,000 VMIG-1
1,850,000 New York State Energy Research & Development Authority
Facilities RB (Consolidated Edison Company of New York, Inc.
Project) - Series 2004 C-2
LOC Citibank, N.A. 11/01/39 2.50 1,850,000 VMIG-1 A-1+
1,500,000 New York State Energy Research & Development Authority
Facilities RB (Consolidated Edison Company of New York, Inc.
Project) - Series 2004 C-3
LOC Citibank, N.A. 11/01/39 2.75 1,500,000 VMIG-1 A-1+
2,400,000 New York State Housing Finance Agency RB
(101 West End Avenue Project) - Series 2000A
Guaranteed by Federal National Mortgage Association 05/15/31 2.55 2,400,000 VMIG-1
2,000,000 New York State Housing Finance Agency RB
(125 West 31st Project) - Series 2005A
Guaranteed by Federal National Mortgage Association 05/15/38 2.70 2,000,000 VMIG-1
5,000,000 New York State Housing Finance Agency RB
(350 West 43rd Street Project) - Series 2004A
LOC Landesbank Hessen -Thuringen Girozentrale 11/01/34 2.52 5,000,000 VMIG-1
7,800,000 New York State Housing Finance Agency RB
(Archstone Westbury Apartments Project) - Series 2004A
LOC Bank of America 11/01/36 2.75 7,800,000 VMIG-1
3,900,000 New York State Housing Finance Agency RB
(Capitol Green Apartments Housing) - 2006 Series A
Guaranteed by Federal National Mortgage Association 05/15/36 2.62 3,900,000 VMIG-1
3,750,000 New York State Housing Finance Agency RB
(Kew Gardens Hills Housing Project) - 2006 Series A
Guaranteed by Federal National Mortgage Association 05/15/36 2.60 3,750,000 VMIG-1
4,000,000 New York State Housing Finance Agency RB
(Taconic West 17th Street Project) - 2006 Series A
LOC Landesbank Baden - Wurttemberg 11/01/39 2.54 4,000,000 VMIG-1
5,000,000 New York State Housing Finance Agency RB
(The Victory Housing Project) - 2001 Series A
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/33 2.70 5,000,000 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, 2008
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 7,700,000 New York State Housing Finance Agency Service Contract RB
- Series 2003B
LOC BNP Paribas 03/15/26 2.60% $ 7,700,000 A-1+
5,100,000 New York State Local Government Assistance Corporation
- Series 1995D
LOC Societe Generale 04/01/25 2.35 5,100,000 VMIG-1 A-1+
7,495,000 New York State Local Government Assistance Corporation
- Series 1995F
LOC Societe Generale 04/01/25 2.45 7,495,000 VMIG-1 A-1+
1,240,000 Onondaga County, NY IDA Civic Facility RB
(YMCA of Greater Syracuse, Inc. Project) - Series 2003A
LOC Citizens Bank, N.A. 11/01/25 2.49 1,240,000 P-1 A-1+
3,730,000 Onondaga County, NY IDA Civic Facility RB
(Ononadaga Community College Housing Development
Corporation Project) - Series 2005A
LOC Citizens Bank, N.A. 12/01/30 2.39 3,730,000 A-1+
3,375,000 Ostego County, NY IDA Civic Facility RB
(Templeton Foundation Project) - Series 2007A (c)
LOC Key Bank, N.A 06/01/27 2.49 3,375,000
3,500,000 Palm Beach County, FL RB (Raymond F. Kravis Center for
Performing Arts, Inc Project) - Series 2002
LOC Northern Trust Company 07/01/32 2.50 3,500,000 VMIG-1
1,900,000 St. Lawrence County, NY IDA Civic Facility Revenue Refunding RB
(Claxton-Hepburn Medical Center Project) - Series 2006
LOC KeyBank, N.A. 12/01/31 2.45 1,900,000 VMIG-1 A-1
4,000,000 Suffolk County, NY IDA Civic Facility RB Series 2006
(St. Anthony's High School Civic Facility)
LOC KBC Bank 12/01/36 2.42 4,000,000 A-1+
2,200,000 TOCs -Series 2000-1 (Puerto Rico Infrastructure Financing Authority
Special Obligation Bonds 2000) - Series A
Collateralized by State & Local Government Securities 04/01/27 2.41 2,200,000 A-1+
3,000,000 TOCs - Series 2001-2 (Puerto Rico Public Improvement
GO Bonds of 2001)
Insured by FSA 07/01/19 2.44 3,000,000 A-1+
1,500,000 Town of Riverhead, NY IDA RB
(Altaire Pharmaceuticals, Inc. Facility) - Series 1998 (c)
LOC Bank of New York Mellon 10/01/13 2.65 1,500,000
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The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
===============================================================================
Ratings (a)
----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 4,700,000 Triborough Bridge & Tunnel Authority, NY Subordinate Revenue
Refunding Bonds (MTA Bridges & Tunnels) - Series 2000AB
Insured by FSA 01/01/19 2.60% $ 4,700,000 VMIG-1 A-1
----------- ------------
291,676,400 Total Variable Rate Demand Instruments 291,676,400
----------- ------------
Variable Rate Demand Instrument - Private Placement (d) (0.75%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Orange County, NY IDA IDRB (1986 Blaser Real Estate Inc. Project)
LOC Union Bank of Switzerland AG 09/01/21 3.41% $ 3,000,000 P-1 A-1+
----------- ------------
3,000,000 Total Variable Rate Demand Instrument - Private Placement 3,000,000
----------- ------------
Total Investments (100.62%) (Amortized cost $402,863,797+) $402,863,797
Liabilities in excess of cash and other assets (-0.62%) (2,497,462)
------------
Net Assets (100.00%) $400,366,335
============
+ Aggregate cost for federal income tax purposes is identical.
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. 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.
(b) The interest rate shown reflects the security's current coupon, unless
yield is available.
(c) 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.
(d) 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.
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The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008
===============================================================================
KEY:
BAN = Bond Anticipation Note IDA = Industrial Development Agency
CSD = Central School District IDRB = Industrial Development Revenue Bond
FHA = Federal Housing Administration LOC = Letter of Credit
FSA = Financial Security Assurance RAN = Revenue Anticipation Note
GNMA = Government National Mortgage Association RB = Revenue Bond
GO = General Obligation TAN = Tax Anticipation Notes
HDC = Housing Development Corporation TOCs = Tender Option Certificates
Breakdown of Portfolio Holdings by State:
-------------------------------------------------------------------------
State Value % of Portfolio
-------------------------------------------------------------------------
Florida $3,500,000 0.87%
Louisiana 1,370,000 0.34
New Hampshire 3,300,000 0.82
New York 383,493,797 95.19
Puerto Rico 5,200,000 1.29
Multiple-State securities 6,000,000 1.49
-------------------------------------------------------------------------
Total $402,863,797 100.00%
-------------------------------------------------------------------------
-------------------------------------------------------------------------------
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, 2008
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)................................ $ 402,863,797
Due from Transfer Agent.............................................................. 586,643
Accrued interest receivable.......................................................... 3,304,916
Prepaid expenses..................................................................... 13,595
---------------
Total assets................................................................... 406,768,951
---------------
LIABILITIES
Payable to affiliates*............................................................... 211,587
Due to Custodian..................................................................... 5,837,135
Accrued expenses..................................................................... 156,161
Dividends payable.................................................................... 196,584
Other payable........................................................................ 1,149
---------------
Total liabilities.............................................................. 6,402,616
---------------
Net assets........................................................................... $ 400,366,335
===============
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 4).............................. $ 400,372,663
Accumulated net realized loss........................................................ (6,328)
---------------
Net assets........................................................................... $ 400,366,335
===============
Net asset value, per share (Note 4):
Class Name Net Assets Shares Outstanding Net Asset Value
Class A Shares.............................. $273,457,567 273,463,043 $1.00
Class B Shares.............................. $15,849,501 15,849,818 $1.00
Advantage Shares............................ $111,059,267 111,061,491 $1.00
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
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, 2008
===============================================================================
INVESTMENT INCOME
Income:
Interest.................................................................. $ 12,776,401
-----------------
Expenses: (Note 2)
Investment management fee................................................. 1,153,453
Administration fee........................................................ 807,417
Distribution fee (Advantage Shares)....................................... 408,849
Shareholder servicing fee (Class A)....................................... 427,951
Shareholder servicing fee (Victory Shares)................................ 109,479
Shareholder servicing fee (Advantage Shares).............................. 227,138
Custodian expenses........................................................ 19,555
Shareholder servicing and related shareholder expenses+................... 213,079
Legal, compliance and filing fees......................................... 101,801
Audit and accounting...................................................... 121,023
Directors' fees and expenses.............................................. 45,038
Other expenses............................................................ 14,729
-----------------
Total expenses........................................................ 3,649,512
Less: Expenses paid indirectly ...................................... (5,162)
Fees Waived ................................................... (256,908)
-----------------
Net expenses ............................................................. 3,387,442
-----------------
Net investment income........................................................ 9,388,959
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments............................................. 1,281
-----------------
Increase in net assets from operations....................................... $ 9,390,240
=================
+ Includes class specific transfer agency expenses of $117,722, $12,763 and
$27,335 for Class A, Class B and Victory Shares, respectively.
-------------------------------------------------------------------------------
The accompanying notes are 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, 2008 AND 2007
===============================================================================
2008 2007
INCREASE (DECREASE) IN NET ASSETS ---------------- ----------------
Operations:
Net investment income......................................... $ 9,388,959 $ 11,535,996
Net realized gain (loss) on investments....................... 1,281 4,432
---------------- ----------------
Increase in net assets from operations........................ 9,390,240 11,540,428
Dividends to shareholders from net investment income*:
Class A....................................................... (5,227,876) (7,502,067)
Class B....................................................... (698,412) (960,061)
Victory Shares................................................ (1,411,155) (1,313,346)
Advantage Shares.............................................. (2,051,516) (1,760,522)
---------------- ----------------
Total dividends to shareholders............................. (9,388,959) (11,535,996)
Capital share transactions (Note 4):
Class A....................................................... 54,607,659 (66,400,934)
Class B....................................................... (16,748,346) (732,412)
Victory Shares................................................ (60,515,130) 21,001,609
Advantage Shares.............................................. 38,641,078 5,737,883
---------------- ----------------
Total capital share transactions............................ 15,985,261 (40,393,854)
---------------- ----------------
Total increase (decrease)................................. 15,986,542 (40,389,422)
Net assets:
Beginning of year............................................. 384,379,793 424,769,215
---------------- ----------------
End of year................................................... $ 400,366,335 $ 384,379,793
================ ================
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 no-load,
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 had four classes of stock authorized, Class A, Class B,
Victory and Advantage New York Tax Exempt Liquidity Fund Shares ("Advantage
Shares"). The Victory shares were liquidated on April 1, 2008. The Class A,
Victory and Advantage Shares are subject to a service fee pursuant to the Fund's
Shareholder Servicing Agreement. The Advantage Shares are also subject to an
additional distribution fee pursuant to a Distribution 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 to specific classes,
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 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 will be calculated based on the longer of the period
remaining until the next readjustment of the interest rate or the period
remaining until the principal amount can be recovered through demand.
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.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
===============================================================================
1. Summary of Accounting Policies (continued)
e) Representations and Indemnifications -
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Fund
that have not yet occurred. However, based on experience, the Fund expects the
risk of loss to be remote.
f) 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 0.30% of the Fund's average daily net assets.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of 0.21% of the Fund's average daily net assets.
Pursuant to the Fund's Distribution and Service 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 0.20% of the Fund's average daily net assets with respect only to
the Class A and Victory Shares and a service fee of 0.25% with respect to the
Advantage Shares. In addition, for its services under the Distribution
Agreement, the Distributor receives 0.45% 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, 2008 the Distributor voluntarily waived the
following fees:
Distribution fees - Advantage Shares $ 249,297
Shareholder servicing fees - Advantage Shares 7,611
----------
Total fees waived $ 256,908
==========
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.
For the year ended April 30, 2008, certain Directors and Officers had
investments representing less than 0.01% of the Fund which are considered
immaterial.
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (continued)
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees pursuant to the Transfer Agency
Agreement between Reich & Tang Services, Inc. and the Fund. Reich & Tang
Services, Inc., an affiliate of the Manager, as transfer agent and dividend
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, 2008 these fees amounted to:
Amount %
--------- -----
Class A shares............................. $ 107,016 0.05%
Class B Shares............................. 12,437 0.05%
Victory Shares............................. 27,335 0.05%
---------
Total Transfer Agency Fees................. $ 146,788
=========
3. Compensating Balance Agreement
The Manager and the Bank of New York Mellon (the "Bank") have entered into a
compensating balance arrangement, effective November 1, 2006, with the Fund,
which allows 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 the Federal Reserve requirements, currently 10%, will be assessed on
the end of day balances. 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. On April 30, 2008, the Fund was overdrawn by $5,837,135.
For the year ended April 30, 2008, the breakdown of expenses paid indirectly by
the Fund were as follows:
Custodian expenses................................... $ 5,162
==========
4. Capital Stock
At April 30, 2008, 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 Ended Year Ended
April 30, 2008 April 30, 2007
-------------- --------------
Class A
--------
Sold...................................... 1,084,289,751 1,460,063,703
Issued on reinvestment of dividends....... 4,402,508 5,221,475
Redeemed.................................. (1,034,084,600) (1,531,686,112)
-------------- --------------
Net increase (decrease)................... 54,607,659 (66,400,934)
============== ==============
Class B
-------
Sold...................................... 81,610,499 152,017,566
Issued on reinvestment of dividends....... 727,401 956,167
Redeemed.................................. (99,086,246) (153,706,145)
-------------- --------------
Net increase (decrease)................... (16,748,346) (732,412)
============== ==============
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
===============================================================================
4. Capital Stock (continued)
Year Ended Year Ended
April 30, 2008 April 30, 2007
-------------- --------------
Victory Shares
--------------
Sold...................................... 95,967,144 78,711,451
Issued on reinvestment of dividends....... 1,410,959 1,313,682
Redeemed.................................. (157,893,233) (59,023,524)
--------------- --------------
Net increase (decrease)................... (60,515,130) 21,001,609
=============== ==============
Advantage Shares
----------------
Sold...................................... 234,751,597 173,247,949
Issued on reinvestment of dividends....... 2,046,062 1,746,111
Redeemed.................................. (198,156,581) (169,256,177)
--------------- --------------
Net increase (decrease)................... 38,641,078 5,737,883
=============== ==============
5. Tax Information
The tax character of distributions paid during the years ended April 30, 2008
and 2007 were as follows:
2008 2007
------------ ------------
Tax-exempt income............................... $ 9,388,959 $ 11,535,996
At April 30, 2008, the Fund had unused capital loss carry forwards of $2,302
available for Federal Income Tax purposes to be applied against future gains, if
any. If not applied against future gains, $2,302 will expire in 2014.
During the year ended April 30, 2008, the Fund utilized $5,307 of its carried
forward capital losses.
At April 30, 2008, as permitted under federal income tax regulations, the Fund
elected to defer $4,026 of post-October net capital losses. At April 30, 2008,
the Fund had no ordinary distributable earnings.
The Fund has adopted Financial Accounting Standards Board ("FASB")
Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an
interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 requires
management to determine whether a tax position of the Fund is more likely than
not to be sustained upon examination by the applicable taxing authority,
including resolution of any related appeals or litigation processes, based on
the technical merits of the position. The tax benefit to be recognized is
measured as the largest amount of benefit that is greater than fifty percent
likely of being realized upon ultimate settlement which could result in the Fund
recording a tax liability that would reduce net assets. FIN 48 must be applied
to all existing tax positions and open tax years upon initial adoption and the
cumulative effect, if any, is to be reported as an adjustment to net assets.
Based on its analysis, management has determined that the adoption of FIN 48 did
not have an impact to the Fund's financial statements upon adoption. However,
management's conclusions regarding FIN 48 may be subject to review and
adjustment at a later date based on factors including, but not limited to,
further implementation guidance expected from the FASB, and on-going analyses of
tax laws, regulations and interpretations thereof.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
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 69% 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. New Accounting Pronouncements
In September 2006, FASB issued Statement of Financial Accounting Standards No.
157, Fair Value Measurements ("SFAS157"). SFAS 157 defines fair value,
establishes a framework for measuring fair value, and expands disclosures about
fair value measurements. SFAS 157 applies to reporting periods beginning after
November 15, 2007. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statements.
8. Financial Highlights
Year Ended April 30,
--------------------------------------------------------------
Class A Shares
---------------- 2008 2007 2006 2005 2004
--------- -------- ------- ------- --------
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.................................... 0.025 0.027 0.019 0.007 0.002
Net realized and unrealized gain (loss) on investments... 0.000 -- 0.000 -- --
-------- -------- -------- -------- --------
Total from investment operations......................... 0.025 0.027 0.019 0.007 0.002
Less distributions from:
Dividends from net investment income..................... (0.025) (0.027) (0.019) (0.007) (0.002)
Net realized gain (loss) on investments.................. -- -- (0.000) -- --
-------- -------- -------- -------- --------
Total distributions...................................... (0.025) (0.027) (0.019) (0.007) (0.002)
-------- -------- -------- -------- --------
Net asset value, end of year................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................................... 2.50% 2.73% 1.93% 0.70% 0.21%
Ratios/Supplemental Data
Net assets, end of year (000's)................................ $273,458 $218,850 $285,247 $283,134 $296,871
Ratios to average net assets:
Expenses (a)............................................. 0.86% 0.87% 0.86% 0.86% 0.83%
Net investment income.................................... 2.44% 2.69% 1.91% 0.70% 0.21%
Expenses paid indirectly................................. 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
===============================================================================
8. Financial Highlights (continued)
Year Ended April 30,
--------------------------------------------------------------
Class B Shares
---------------- 2008 2007 2006 2005 2004
--------- -------- ------- ------- --------
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 0.029 0.021 0.009 0.004
Net realized and unrealized gain (loss) on investments... 0.000 -- 0.000 -- --
-------- -------- -------- -------- --------
Total from investment operations......................... 0.027 0.029 0.021 0.009 0.004
Less distributions from:
Dividends from net investment income..................... (0.027) (0.029) (0.021) (0.009) (0.004)
Net realized gain (loss) on investments.................. -- -- (0.000) -- --
-------- -------- -------- -------- --------
Total distributions...................................... (0.027) (0.029) (0.021) (0.009) (0.004)
-------- -------- -------- -------- --------
Net asset value, end of year................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................................... 2.71% 2.93% 2.14% 0.90% 0.41%
Ratios/Supplemental Data
Net assets, end of year (000's)................................ $ 15,849 $ 32,597 $ 33,330 $ 39,831 $ 51,411
Ratios to average net assets:
Expenses (a)............................................. 0.65% 0.68% 0.67% 0.66% 0.63%
Net investment income.................................... 2.80% 2.90% 2.14% 0.88% 0.40%
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)
===============================================================================
8. Financial Highlights (continued)
Year Ended April 30,
--------------------------------------------------------------
Advantage Shares
----------------- 2008 2007 2006 2005 2004
--------- -------- ------- ------- --------
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.................................... 0.023 0.025 0.018 0.006 0.001
Net realized and unrealized gain (loss) on investments... 0.000 -- 0.000 -- --
-------- -------- -------- -------- --------
Total from investment operations......................... 0.023 0.025 0.018 0.006 0.001
Less distributions from:
Dividends from net investment income..................... (0.023) (0.025) (0.018) (0.006) (0.001)
Net realized gain (loss) on investments.................. -- -- (0.000) -- --
-------- -------- -------- -------- --------
Total distributions...................................... (0.023) (0.025) (0.018) (0.006) (0.001)
-------- -------- -------- -------- --------
Net asset value, end of year................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................................... 2.34% 2.58% 1.79% 0.61% 0.15%
Ratios/Supplemental Data
Net assets, end of year (000's)................................ $111,059 $ 72,419 $ 66,680 $ 71,563 $ 36,685
Ratios to average net assets:
Expenses (a)............................................. 1.02% 1.02% 1.01% 0.95% 0.89%
Net investment income.................................... 2.26% 2.55% 1.77% 0.63% 0.14%
Expenses paid indirectly................................. 0.00% 0.00% 0.00% 0.00% 0.00%
Distribution and Shareholder servicing fees waived....... 0.28% 0.30% 0.31% 0.36% 0.39%
(a) Includes expenses paid indirectly
-------------------------------------------------------------------------------
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, 2008, 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 five years in the
period then ended, 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, 2008 by correspondence with the
custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
June 25, 2008
-------------------------------------------------------------------------------
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.
DISTRIBUTIONS
The tax character of all distributions paid during the years ended April 30,
2008 and 2007 were tax-exempt income.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT
New York Daily Tax Free Income Fund, Inc.
On March 4, 2008, 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 Board 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 Board 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 Board
evaluated these factors based on their direct experience with the Manager and in
consultation with counsel to the independent directors. The Board 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 Board 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 Board;
and (iv) the Manager had kept the Board apprised of developments relating to the
Fund and the industry in general. The Board 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 Board 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 Board 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 December 31,
2007. The peer group categories included: (i) an asset-based peer group of New
York tax-exempt money market funds, as classified by Lipper ("performance group
1"); (ii) a competitors class peer group, representing other New York tax-exempt
money market funds that are considered to be competitors of the Fund with
similar distribution channels ("performance group 2"); and (iii) a peer group of
all retail and institutional New York tax-exempt money market funds in the
Lipper universe regardless of asset size or primary channel of distribution
("performance 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 Board used the Fund's performance
against the Peer Groups to provide objective comparative benchmarks against
which they could assess the Fund's performance. The Board 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 investment objectives, strategies,
-------------------------------------------------------------------------------
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
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 1st quintile for the one-month and
one-year periods, 3rd quintile for the three-year and five-year periods, 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 Board
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 Board 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 Board 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 Board 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 Board also considered comparative total fund expenses of
the Class A shares of the Fund and the Peer Groups. The Board 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 Board 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
Board 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, but at the higher end of the comparison range,
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
Board 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 Board concluded that the level of the management fee was reasonable in
light of these factors.
The Board also considered the profitability to the Manager and its affiliates
arising out of their relationships with the Fund. In this regard the Board
reviewed profitability data that was distributed at the meeting relating to the
Manager and its affiliates for the year ended December 31, 2006. The Board
considered revenues received by the Manager under the Investment Management
Contract and Administrative Services Contract. In reviewing the Manager's
profitability reports, the Board and the Manager discussed the Manager's
associated costs and the impact of such costs on the Manager's net
profitability. The Board concluded that the profitability of the Fund to the
Manager and its affiliates was reasonable.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, continued
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 Boards consideration of' economies of scale, the Board
discussed with the Manager whether economies of scale would be realized by it in
its management of the Fund at higher asset levels. The Board 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 Board 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 Board
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 was significant asset growth in the future, the Board
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 Board 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 Board,
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 Board deemed relevant. The Board based their decision on an evaluation 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, 2008(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/Trustee Trustee of the
Age 58 and Partner of Hays & Company of eleven Empire Builder
LLP since 1980. portfolios Tax Free Bond
Fund and
Director of ISI
Funds.
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
Caroline E. Newell, Director 1984 Director of the Park Avenue Director of one Trustee of the
Age 67 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 59 University School of Law portfolio Empire Builder
since 1980. Tax Free Bond
Fund
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
-------------------------------------------------------------------------------
===============================================================================
Directors and Officers Information
April 30, 2008(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, Director(4) Since 1994 President and Chief Executive Officer of Director/Trustee None
Age 54 Reich & Tang Asset Management, LLC ("RTAM, of ten
President 1994-2007 LLC"), a registered Investment Advisor and portfolios
Chief Investment Officer of the Mutual
Funds Division of RTAM, LLC. Associated
with RTAM, LLC since 1994. Mr. Duff is
also Director/Trustee of six other funds in
the Reich & Tang Fund Complex. Prior to
December 2007 Mr. Duff was President of the
Fund and President of nine other funds in
the Reich & Tang Fund Complex, 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 Director, Chief
Executive Officer and President of Reich &
Tang Distributors, Inc.
------------------ ----------- -------------- --------------------------------------------- ---------------- ------------
------------------- ---------- -------------- --------------------------------------------- ---------------- ------------
Michael P. Lydon, President Since 2007 Executive Vice President of RTAM, LLC and Director/Trustee N/A
Age 44 President and Chief Executive Officer of of nine
the Mutual Funds division of RTAM, LLC. portfolios
Vice 2005-2007 Associated with RTAM, LLC since January
President 2005. Mr. Lydon was Vice President at
Automatic Data Processing from July 2000 to
December 2004. Mr. Lydon is President and
Director/Trustee of five funds in the Reich
& Tang Fund Complex, Principal Executive
Officer of Delafield Fund, Inc., President
and Chief Executive Officer of Tax Exempt
Proceeds Fund, Inc. and Director of Pax
World Money Market Fund, Inc. Prior to
December 2007, Mr. Lydon was Vice President
of twelve Funds in the Reich & Tang Fund
Complex. Mr. Lydon also serves as
President, Chief Executive Officer and
Director of Reich & Tang Services, Inc. and
Executive Vice President, Chief Operations
Officer and Director of Reich & Tang
Distributors, Inc.
------------------- ---------- -------------- --------------------------------------------- ---------------- ------------
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================
Directors and Officers Information
April 30, 2008(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:
------------------------------- ------------ ------------------------------------------------ ------------- -------------
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
Christopher Chief Since 2007 Vice President, Chief Compliance Officer, AML N/A N/A
Brancazio, Compliance Officer and Secretary of RTAM, LLC since
Age 42 Officer September 2007. Mr. Brancazio is also Chief
and AML Compliance Officer and AML Officer of eight
Officer other funds in the Reich & Tang Fund Complex.
From February 2007 to August 2007, Mr. Brancazio
was a Compliance Officer at Bank of New York
Asset Management.From March 2002 to February
2007 Mr. Brancazio served as Vice President,
Chief Compliance Officer, and AML Officer of
Trainer Wortham & o. Inc., and the Trainer
Wortham Mutual Funds.Mr. Brancazio also serves
as Vice President, Chief Compliance Officer, AML
Officer and Secretary of Reich & Tang
Services, Inc. and Reich & Tang Distributors,
Inc.
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
Richard De Vice Since 2005 Executive Vice President and Chief Operating N/A N/A
Sanctis, President Officer and of RTAM, LLC and Reich & Tang
Age 51 1992 to Services, Inc. Associated with RTAM, LLC since
Treasurer 2004 1990. Mr. De Sanctis is Vice President of
and eight other funds in the Reich & Tang Fund
Assistant Complex, and serves as Executive Vice President
Secretary and Chief Financial Officer of 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.
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
Joseph Jerkovich, Vice Since 2008 Senior Vice President and Chief Financial N/A N/A
Age 40 President Officer of RTAM, LLC and of Reich & Tang
Services, Inc. Associated with RTAM, LLC since
September 2004. Mr. Jerkovich was Vice
President and Chief Investment Officer at
Winklevoss Consulting from May 2002 - July 2004.
Mr. Jerkovich is Vice President of eight other
funds in the Reich & Tang Fund Complex and is
also Senior Vice President and Controller of
Reich & Tang Distributors, Inc.
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
-------------------------------------------------------------------------------
Directors and Officers Information
April 30, 2008(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:
----------------------------- ------------- ---------------------------------------------- ---------------- -------------
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
Christine Manna, Secretary Since 2007 Vice President and Assistant Secretary of N/A N/A
Age 38 RTAM, LLC. Ms. Manna is also Secretary of
eight other funds in the Reich & Tang Complex.
Ms. Manna has been associated with RTAM, LLC
and its predecessors since June 1995. Ms.
Manna is also a Vice President and Assistant
Secretary of Reich & Tang Services, Inc. and
Reich & Tang Distributors, Inc.
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
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.
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
Robert Rickard, Vice Since 2007 Senior Vice President of RTAM, LLC. N/A N/A
Age 39 President Associated with RTAM, LLC since December
1991. Mr. Rickard is also Vice President of
eight other funds in the Reich & Tang Fund
Complex. Mr. Rickard is also Senior Vice
President of Reich & Tang Distributors, Inc.
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
(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.
-------------------------------------------------------------------------------
-------------------------------------------------------
This report is submitted for the general information NEW YORK
of the shareholders of the Fund. It is not authorized DAILY
for distribution to prospective investors in the Fund TAX FREE
unless preceded or accompanied by an effective INCOME
prospectus, which includes information regarding the FUND, INC.
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 Mellon
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, 2008
New York, New York 10020
Distributor
Reich & Tang Distributor, Inc.
600 Fifth Avenue
New York, New York 10020
NY 04/08A
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 04/30/2008 FYE 04/30/2007
4(a) Audit Fees $ 33,500 $ 31,500
4(b) Audit Related Fees $ 0 $ 0
4(c) Tax Fees $ 4,000 $ 3,600
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) $4,000 and $52,950, 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, 2008. $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.
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/Christine Manna
Christine Manna, Secretary
Date: July 3, 2008
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/Michael P. Lydon
Michael P. Lydon, President
Date: July 9, 2008
By (Signature and Title)* /s/Joseph Jerkovich
Joseph Jerkovich, Treasurer and Assistant Secretary
Date: July 9, 2008
* Print the name and title of each signing officer under his or her signature.