As filed with the Securities and Exchange Commission on July 6, 2004
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)
Rosanne Holtzer
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: 04/30
-----
Date of reporting period: 04/30/2004
----------
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. for the year ended April 30, 2004.
The Fund had net assets of $438,582,840 and 3,236 active shareholders as of
April 30, 2004.
Effective July 1, 2004, the Fund's portfolio holdings will be available
periodically on our website at http://www.money-funds.com/portfolioholdings or
toll free at (800) 433-1918. The posting of the schedule of portfolio holdings
will be delayed at least 5 days after the date of the schedule. The Fund may
terminate or modify this policy at any time without further notice to
shareholders.
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.
STATEMENT OF NET ASSETS
APRIL 30, 2004
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Put Bond (b) (1.14%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 4,980,000 New York, NY (Merlots) - Series A 37
Insured by MBIA Insurance Corp. 08/11/04 1.10% $ 4,980,000 VMIG-1
- ----------- ------------
4,980,000 Total Put Bond 4,980,000
- ----------- ------------
Revenue Bond (3.42%)
- ------------------------------------------------------------------------------------------------------------------------------------
$15,000,000 Commonwealth of Puerto Rico Public Improvement
Refunding Bonds - Series 2001 TICs/TOCs Trust - Series 2001-1
Insured by FSA 05/26/04 0.95% $ 15,000,000 A1+
- ----------- ------------
15,000,000 Total Revenue Bond 15,000,000
- ----------- ------------
Tax Exempt Commercial Paper (3.74%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 9,000,000 New York City, NY MTA Transportation Facilities BAN - Series A
LOC ABN AMRO Bank N.A. 05/05/04 0.95% $ 9,000,000 P1 A1+
5,000,000 New York State Dormitory Authority (Columbia University) - Series C 05/12/04 0.96 5,000,000 A1+
2,400,000 New York State Environmental Quality (Clean Water Act 1986)
LOC Bayerische Landesbank & Landesbank Hessen 07/14/04 1.00 2,400,000 P1 A1+
- ----------- ------------
16,400,000 Total Tax Exempt Commercial Paper 16,400,000
- ----------- ------------
Tax Exempt General Obligation Notes & Bonds (18.36%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 6,675,000 City of Beacon, NY Dutchess County BAN - Series 2003 (c) 12/24/04 1.20% $ 6,675,821
8,000,000 City of Binghamton, NY School District RAN (c) 01/21/05 1.15 8,001,684
5,929,500 Corning, NY CSD BAN (c) 08/12/04 1.05 5,929,988
1,767,122 East Greenbush, NY CSD BAN - Series 2004 (c)
Insured by MBIA Insurance Corp. 12/01/04 1.00 1,782,482
4,000,000 Honeoye Falls-Lima, NY CSD RAN (c) 06/17/04 1.05 4,000,176
2,238,515 Hyde Park, NY CSD BAN (c) 06/25/04 1.00 2,241,011
3,000,000 Jefferson County, NY BAN (c) 12/10/04 1.15 3,015,354
14,100,157 Lewiston-Porter, NY CSD BAN (c) 06/17/04 1.00 14,101,047
7,670,000 New York and New Jersey ABN AMRO Municipal TOPS
Certificates Trust - Series 2002-33
LOC Dexia CLF 05/05/04 1.09 7,670,000 VMIG-1
3,000,000 Newburgh, NY CSD BAN (c) 09/02/04 1.07 3,006,828
2,093,413 Oswego, NY School District BAN - Series 2004 (c) 08/12/04 1.07 2,093,876
9,700,000 Penn Yan, NY CSD BAN (c) 06/22/04 0.93 9,700,942
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The accompanying notes are an integral part of these financial statements.
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================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Tax Exempt General Obligation Notes & Bonds (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 7,500,000 Syosset, NY CSD BAN (c) 07/16/04 1.05% $ 7,500,736
4,800,000 Tonawanda, NY BAN (c) 08/05/04 1.05 4,808,710
- ----------- ------------
80,473,707 Total Tax Exempt General Obligation Notes & Bonds 80,528,655
- ----------- ------------
Variable Rate Demand Instruments (d) (72.02%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Commonwealth of Puerto Rico
Public Improvement Bonds TOCs - Series 2001
Insured by FSA 07/01/19 1.07% $ 5,000,000 A1+
1,200,000 Dutchess County, NY IDA Civic Facilities RB
(Trinity - Pawling School Corporation)
LOC Allied Irish Bank 10/01/32 1.08 1,200,000 VMIG-1
2,300,000 Erie County, NY IDA (Hauptman - Woodard Project) - Series 2004 (c)
LOC Key Bank, N.A. 03/01/24 1.17 2,300,000
1,000,000 Islip, NY IDRB (Brentwood Distributor Co. Facility) - Series 1984 (c)
LOC Fleet Bank 05/01/09 1.12 1,000,000
400,000 Jackson County, MS Port Facility RB - Series 1993
(Chevron USA Inc. Project) 06/01/23 1.10 400,000 P1
4,550,000 Jefferson County, NY IDA IDRB (Stature Electric Inc.) (c)
LOC PNC Bank, N.A. 10/01/13 1.09 4,550,000
1,050,000 Long Island Power Authority, NY RB (Electric System)- Series 2,
Subseries 2-B
LOC Bayerische Landesbank, A.G. 05/01/33 1.09 1,050,000 VMIG-1 A1+
22,450,000 Long Island Power Authority, NY RB
(Electric System) - Series 7, Subseries 7-B
Insured by MBIA Insurance Corp. 04/01/25 1.08 22,450,000 VMIG-1 A1+
2,500,000 Monroe County, NY IDA - Series A
LOC Wachovia Bank & Trust Company, N.A. 06/01/29 1.10 2,500,000 VMIG-1
1,115,000 New York City, NY Trust for Cultural Resources
(Carnegie Hall) - Series 1990
LOC Depfa Bank PLC 12/01/15 1.06 1,115,000 VMIG-1 A1+
2,000,000 New York City, NY GO - Series A-5
LOC KBC Bank 08/01/15 1.08 2,000,000 VMIG-1 A1+
1,800,000 New York City, NY GO - Series E-4
LOC State Street Bank & Trust Company 08/01/21 1.08 1,800,000 VMIG-1 A1+
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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.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2004
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,700,000 New York City, NY GO - Series E-5
LOC Morgan Guaranty Trust Company 08/01/17 1.06% $ 2,700,000 VMIG-1 A1+
2,350,000 New York City, NY GO - Series F-3
LOC Morgan Guaranty Trust Company 02/15/13 1.07 2,350,000 VMIG-1 A1+
3,900,000 New York City, NY GO - Series F-6
LOC Morgan Guaranty Trust Company 02/15/18 1.07 3,900,000 VMIG-1 A1+
4,500,000 New York City, NY GO - Series H-4
Insured by AMBAC Indemnity Corp. 08/01/15 1.06 4,500,000 VMIG-1 A1
4,000,000 New York City, NY GO - Series J, Subseries J-2
LOC Westdeutsche Landesbank 02/15/16 1.07 4,000,000 VMIG-1 A1+
3,400,000 New York City, NY GO Bonds - Series B-9
LOC Chase Manhattan Bank, N.A. 08/15/23 1.07 3,400,000 VMIG-1 A1+
2,200,000 New York City, NY GO Bonds - Series H-7
LOC Morgan Guaranty Trust Company 03/01/34 1.09 2,200,000 VMIG-1 A1
10,545,000 New York City, NY GO Fiscal 1993 - Series A-6
LOC Landesbank Hessen 08/01/19 1.08 10,545,000 VMIG-1 A1+
3,000,000 New York City, NY GO Trust Receipts SGB33 - Series 1 1996F
Insured by FSA 02/01/19 1.11 3,000,000 A1+
1,600,000 New York City, NY HDC Residential RB
(East 17th Street Properties) - Series A
LOC Rabobank Nederland 01/01/23 1.08 1,600,000 A1
2,800,000 New York City, NY HDC Residential RB
(Montefiore Medical Center) - Series 1993A
LOC Chase Manhattan Bank, N.A. 05/01/30 1.06 2,800,000 A1
2,075,000 New York City, NY IDA Civic Facilities RB
(Epiphany Community Nursery School Project) - Series 1997
LOC Bank of New York 05/01/11 1.24 2,075,000 VMIG-1
24,100,000 New York City, NY IDA Civic Facilities RB (Center for Jewish History)
LOC Allied Irish Bank 09/01/31 1.06 24,100,000 VMIG-1
3,865,000 New York City, NY IDA Civic Facilities RB (Convent Sacred Heart School)
LOC Allied Irish Bank 11/01/32 1.09 3,865,000 VMIG-1
4,725,000 New York City, NY IDA Civic Facilities RB
(American Society Technion Project)
LOC Allied Irish Bank 10/01/33 1.07 4,725,000 VMIG-1
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$17,900,000 New York City, NY IDA Special Facility RB
(Korean Airlines Company Limited Project) - Series 1997B
LOC Rabobank Nederland 11/01/24 1.11% $ 17,900,000 VMIG-1 A1+
5,000,000 New York City, NY Municipal Water Finance
Authority RB Municipal Securities Trust Receipts
Insured by MBIA Insurance Corp. 06/15/23 1.11 5,000,000 A1+
2,000,000 New York City, NY Municipal Water Finance
Authority RB (Water & Sewer System) 06/15/33 1.11 2,000,000 A1+
12,155,000 New York State Development Corporation (Eagle) 07/01/16 1.11 12,155,000 A1+
1,000,000 New York State Dormitory Authority RB
(Mental Health System) - Series 2003
LOC Dexia CLF 02/15/21 1.07 1,000,000 A1+
6,900,000 New York State Dormitory Authority - Series PPT-5
Insured by FHA/AMBAC Indemnity Corp. 10/11/30 1.19 6,900,000 A1+
990,000 New York State Dormitory Authority (Merlots) - Series A30
Insured by AMBAC Indemnity Corp. 02/15/18 1.11 990,000 VMIG-1
1,000,000 New York State Dormitory Authority RB P-Floats PA 199
Insured by MBIA Insurance Corp. 07/01/13 1.11 1,000,000 A1
2,000,000 New York State Dormitory Authority RB (Cornell University) - Series A 07/01/29 1.06 2,000,000 A1+
4,785,000 New York State Dormitory Authority RB (Public Library) - Series A
Insured by MBIA Insurance Corp. 07/01/28 1.08 4,785,000 VMIG-1 A1
3,100,000 New York State Dormitory Authority RB (Wagner College Project)
LOC Morgan Guaranty Trust Company 07/01/28 1.06 3,100,000 A1+
12,000,000 New York State HFA (Normandie Court II Project) - Series A
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/29 1.08 12,000,000 VMIG-1
12,000,000 New York State HFA RB (Saxony Housing) - Series 1997A 05/15/30 1.08 12,000,000 VMIG-1
4,000,000 New York State HFA RB (Union Square Housing)
Guaranteed by Federal National Mortgage Association 05/15/24 1.13 4,000,000 VMIG-1
6,300,000 New York State HFA RB - Series A
Guaranteed by Federal National Mortgage Association 05/01/29 1.13 6,300,000 VMIG-1
1,300,000 New York State HFA RB
(Saville Housing) - Series A
LOC Fleet Bank 11/01/35 1.08 1,300,000 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.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2004
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,300,000 New York State Local Government Assistance Corporation -
Series A-7V
Insured by FGIC 04/01/20 1.06% $ 3,300,000 VMIG-1 A1+
10,600,000 New York State Local Government Assistance Corporation -
Series 1994B
LOC Westdeutsche Landesbank/Bayerische Landesbank 04/01/23 1.06 10,600,000 VMIG-1 A1+
1,000,000 New York State Local Government Assistance Corporation - Series B
LOC Bank of Nova Scotia 04/01/25 1.06 1,000,000 VMIG-1 A1+
13,200,000 New York State Local Government Assistance Corporation - Series C
LOC Landesbank Hessen 04/01/25 1.06 13,200,000 VMIG-1 A1+
5,000,000 New York State Local Government Assistance Corporation -
Series 1995D
LOC Societe Generale 04/01/25 1.04 5,000,000 VMIG-1 A1+
12,000,000 New York State Local Government Assistance Corporation - Series E
LOC Landesbank Hessen 04/01/25 1.06 12,000,000 VMIG-1 A1+
8,900,000 New York State Local Government Assistance Corporation -
Series 1995F
LOC Societe Generale 04/01/25 1.06 8,900,000 VMIG-1 A1+
3,800,000 New York State Local Government Assistance Corporation - Series G
LOC Bank of Nova Scotia 04/01/25 1.06 3,800,000 VMIG-1 A1
1,200,000 New York State Medical Care Facilities Finance
Agency RB P-Floats - 407 02/15/25 1.11 1,200,000 A1+
4,600,000 New York State MHRB (Normandie Court I Project) - Series 1
LOC Landesbank Hessen 05/15/15 1.06 4,600,000 VMIG-1 A1+
4,575,000 New York State Thruway Authority
(Highway & Bridge Trust Fund) ROCs RR II R4506
Insured by AMBAC Indemnity Corp. 04/01/19 1.11 4,575,000 A1+
4,400,000 New York Triborough Bridge & Tunnel Authority - Series C
Insured by AMBAC Indemnity Corp. 01/01/33 1.07 4,400,000 VMIG-1 A1+
7,000,000 New York, NY - Series F-2 02/15/12 1.05 7,000,000 VMIG-1 A1+
5,000,000 New York, NY - Subseries H-6
LOC Fleet Bank 03/01/34 1.07 5,000,000 VMIG-1 A1
4,000,000 Port Authority of New York and New Jersey
ROB/INS Trust Receipts Class F - Series 10
Insured by FSA 01/15/17 1.09 4,000,000 VMIG-1 A1+
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Puerto Rico Commonwealth - PA 625
Insured by AMBAC Indemnity Corp. 07/01/10 1.08% $ 2,000,000 A1+
1,350,000 Puerto Rico HFC (Eagle) - Series 2000-C5102
Insured by AMBAC Indemnity Corp. 10/01/11 1.19 1,350,000 A1+
2,000,000 Puerto Rico Infrastructure Financing Authority
(Eagle Trust) - Series 2001 10/01/34 1.11 2,000,000
3,400,000 Puerto Rico PFC P-Floats PA 783 10/01/19 1.08 3,400,000 A1+
5,000,000 Warren & Washington Counties, NY IDA IDRB
(Griffith Micro Science Inc. Project) - Series 1994
LOC Bank One 12/01/14 1.13 5,000,000 A1+
- ----------- ------------
315,880,000 Total Variable Rate Demand Instruments 315,880,000
- ----------- ------------
Variable Rate Demand Instrument - Private Placement (d) (0.68%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 2.60% $ 3,000,000 P1 A1+
- ----------- ------------
3,000,000 Total Variable Rate Demand Instrument - Private Placement 3,000,000
- ----------- ------------
Total Investments (99.36%) (Cost $435,788,655+) 435,788,655
Cash and other assets, net of liabilities (0.64%) 2,794,185
------------
Net Assets (100.00%) $438,582,840
============
Net Asset Value, offering and redemption price per share:
Class A, 296,872,078 shares outstanding (Note 3) $ 1.00
============
Class B, 51,411,042 shares outstanding (Note 3) $ 1.00
============
Victory Shares, 53,615,779 shares outstanding (Note 3) $ 1.00
============
Advantage Shares, 36,685,630 shares outstanding (Note 3) $ 1.00
============
<FN>
+ Aggregate cost for federal income tax purposes is identical.
</FN>
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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.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2004
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company 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 have either 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 maturity date indicated is the next put date.
(c) Securities that are not rated that the 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 where indicated are 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 LOC = Letter of Credit
CSD = Central School District MHRB = Multi-Family Revenue Housing Bond
FGIC = Financial Guaranty Insurance Company MTA = Metropolitan Transit Authority
FHA = Federal Housing Administration PFC = Public Finance Corporation
FSA = Financial Security Assurance RAN = Revenue Anticipation Note
GO = General Obligation RB = Revenue Bond
HDC = Housing Development Corporation ROB/INS = Reverse Option Bond / Inverse Securities
HFA = Housing Finance Authority ROCS = Reset Option Certificates
HFC = Housing Finance Commission TICs = Trust Inverse Certificates
IDA = Industrial Development Authority TOCs = Tender Option Certificates
IDRB = Industrial Development Revenue Bond TOPS = Tender Option Puts
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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.
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 2004
================================================================================
INVESTMENT INCOME
Income:
Interest.................................................................. $ 4,980,481
-----------------
Expenses: (Note 2)
Investment management fee................................................. 1,444,722
Administration fee........................................................ 1,011,305
Distribution fee (Advantage Shares)....................................... 253,134
Shareholder servicing fee (Class A)....................................... 608,858
Shareholder servicing fee (Victory Shares)................................ 145,926
Shareholder servicing fee (Advantage Shares).............................. 140,630
Custodian expenses........................................................ 25,998
Shareholder servicing and related shareholder expenses+................... 249,503
Legal, compliance and filing fees......................................... 115,807
Audit and accounting...................................................... 116,889
Directors' fees and expenses.............................................. 20,250
Other expenses............................................................ 22,241
-----------------
Total expenses........................................................ 4,155,263
Less: Expenses paid indirectly (Note 2).............................. ( 2,552)
Fees Waived (Note 2)........................................... ( 225,442)
-----------------
Net expenses ............................................................. 3,927,269
-----------------
Net investment income........................................................ 1,053,212
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments...................................... -0-
-----------------
Increase in net assets from operations....................................... $ 1,053,212
=================
<FN>
+ Includes class specific transfer agency expenses of $152,252, $23,982 and
$36,490 for Class A, Class B and Victory Shares, respectively.
</FN>
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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.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED APRIL 30, 2004 AND 2003
================================================================================
2004 2003
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 1,053,212 $ 3,145,190
Net realized gain (loss) on investments....................... -0- 3,741
---------------- -----------------
Increase in net assets from operations........................ 1,053,212 3,148,931
Dividends to shareholders from net investment income:
Class A....................................................... ( 624,714)* ( 2,117,552)*
Class B....................................................... ( 193,709)* ( 347,924)*
Victory Shares................................................ ( 153,411)* ( 594,818)*
Advantage Shares.............................................. ( 81,378)* ( 84,896)*
Distributions from realized gains on investments:
Class A....................................................... -0- ( 1,130)
Class B....................................................... -0- ( 159)
Victory Shares................................................ -0- ( 266)
Advantage Shares.............................................. -0- ( 172)
Capital share transactions (Note 3):
Class A....................................................... ( 27,214,765) ( 19,810,540)
Class B....................................................... 4,445,274 ( 3,476,323)
Victory Shares................................................ ( 26,167,129) ( 10,180,643)
Advantage Shares.............................................. ( 20,564,068) 57,249,698
--------------- -----------------
Total (decrease) increase................................. ( 69,500,688) 23,784,206
Net assets:
Beginning of year............................................. 508,083,528 484,299,322
---------------- -----------------
End of year................................................... $ 438,582,840 $ 508,083,528
================ =================
Undistributed net investment income........................... $ -0- $ -0-
<FN>
* Designated as exempt-interest dividends for federal income tax purposes.
</FN>
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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 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
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 Victory
Shares commenced on August 27, 1999. The Advantage Shares commenced on November
22, 2002 (formerly New York Tax Exempt Liquidity Fund Shares; redesignated
Advantage New York Tax Exempt Liquidity Fund Shares on April 29, 2004).
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. Under this valuation method, a
portfolio instrument is valued at cost and any discount is accreted or
premium is amortized on a constant basis to the maturity of the instrument.
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 investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
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.
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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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 .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, 2004, the Distributor voluntarily waived the
following fees:
Distribution fees - Advantage Shares $ 79,787
Shareholder servicing fees - Class A 4,001
Shareholder servicing fees - Victory Shares 1,024
Shareholder servicing fees - Advantage Shares 140,630
The Distributor has no right to recoup prior waivers.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$4,000 per annum plus $750 per meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $212,591 paid to Reich & Tang
Services, Inc., an affiliate of the Manager, as shareholder servicing agent for
the Fund.
For the year ended April 30, 2004, the Fund had expense offsets of $2,552 from
shareholder servicing and related shareholder expenses.
3. Capital Stock
At April 30, 2004, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $438,582,840. Transactions in capital
stock, all at $1.00 per share, were as follows:
Year Year
Ended Ended
April 30, 2004 April 30, 2003
-------------- --------------
Class A
- -------
Sold...................................... 1,016,942,018 663,226,627
Issued on reinvestment of dividends....... 414,212 1,189,376
Redeemed.................................. (1,044,570,995) ( 684,226,543)
------------- -----------
Net (decrease)............................ ( 27,214,765) ( 19,810,540)
============= ============
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
3. Capital Stock (Continued)
Year Year
Ended Ended
April 30, 2004 April 30, 2003
-------------- --------------
Class B
- -------
Sold...................................... 209,343,267 262,746,630
Issued on reinvestment of dividends....... 199,092 350,336
Redeemed.................................. (205,097,085) (266,573,289)
----------- -----------
Net increase (decrease)................... 4,445,274 ( 3,476,323)
=========== ===========
Victory Shares
- --------------
Sold...................................... 144,236,690 151,410,340
Issued on reinvestment of dividends....... 152,982 595,064
Redeemed.................................. (170,556,801) (162,186,047)
----------- -----------
Net (decrease)............................ ( 26,167,129) ( 10,180,643)
=========== ===========
Year November 22, 2002
Ended (Commencement of Offering) to
April 30, 2004 April 30, 2003
-------------- --------------
Advantage Shares
- ----------------
Sold...................................... 175,147,776 169,576,276
Issued on reinvestment of dividends....... 87,245 76,044
Redeemed.................................. (195,799,089) (112,402,622)
----------- -----------
Net (decrease) increase................... ( 20,564,068) 57,249,698
=========== ============
4. Liabilities
At April 30, 2004, the Fund had the following liabilities:
Fees payable to Affiliates*............... $ 219,049
Dividends payable......................... 38,900
Accrued other payables.................... 24,387
-----------
Total liabilities...................... $ 282,336
===========
<FN>
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
5. Tax Information
The tax character of all distributions paid during the years ended April 30,
2004 and 2003 were as follows:
2004 2003
------------- -------------
Ordinary Income $ -0- $ 1,727
Tax - Exempt Income 1,053,212 3,145,190
At April 30, 2004, the Fund had no distributable earnings.
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 73% 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
Year Ended April 30,
Class A -------------------------------------------------------
- ------- 2004 2003 2002 2001 2000
------- ------- ------- ------- -------
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................................. 0.002 0.006 0.012 0.031 0.026
Net realized and unrealized gain(loss) on investment.. -- 0.000 -- -- --
------- ------- ------- ------- -------
Total from investment operations...................... 0.002 0.006 0.012 0.031 0.026
Less distributions:
Dividends from net investment income.................. ( 0.002) ( 0.006) ( 0.012) ( 0.031) ( 0.026)
Net realized gain on investment....................... -- ( 0.000) -- -- --
------- ------ ------ ------- -------
Total distributions................................... ( 0.002) ( 0.006) ( 0.012) ( 0.031) ( 0.026)
------- ------ ------ ------ ------
Net asset value, end of year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return............................................. 0.21% 0.59% 1.23% 3.11% 2.62%
Ratios/Supplemental Data
Net assets, end of year (000)............................ $296,871 $324,086 $343,895 $406,791 $323,216
Ratios to average net assets:
Expenses (a).......................................... 0.83% 0.82% 0.85% 0.87% 0.86%
Net investment income................................. 0.21% 0.59% 1.27% 3.03% 2.59%
Expenses paid indirectly.............................. 0.00% 0.00% 0.00% 0.00% 0.00%
Shareholder servicing fees waived..................... 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
7. Financial Highlights (Continued)
Year Ended April 30,
Class B -------------------------------------------------------
- ------- 2004 2003 2002 2001 2000
------- ------- ------- ------- -------
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................................. 0.004 0.008 0.015 0.033 0.028
Net realized and unrealized gain(loss) on investment.. -- 0.000 -- -- --
------- ------- ------- ------- -------
Total from investment operations...................... 0.004 0.008 0.015 0.033 0.028
Less distributions:
Dividends from net investment income.................. ( 0.004) ( 0.008) ( 0.015) ( 0.033) ( 0.028)
Net realized gain on investment....................... -- ( 0.000) -- -- --
------- ------ ------- ------- -------
Total distributions................................... ( 0.004) ( 0.008) ( 0.015) ( 0.033) ( 0.028)
------ ------ ------ ------ ------
Net asset value, end of year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return............................................. 0.41% 0.79% 1.46% 3.37% 2.84%
Ratios/Supplemental Data
Net assets, end of year (000)............................ $51,411 $46,966 $50,441 $45,149 $39,277
Ratios to average net assets:
Expenses (b).......................................... 0.63% 0.61% 0.62% 0.62% 0.64%
Net investment income................................. 0.40% 0.77% 1.44% 3.31% 2.87%
Expenses paid indirectly.............................. 0.00% 0.00% 0.00% 0.00% 0.00%
Victory Shares Year Ended April 30, August 27, 1999
- -------------- ------------------------------------------- (Commencement of Offering)
2004 2003 2002 2001 April 30, 2000
------- ------- ------- ------- --------------
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................................. 0.002 0.006 0.012 0.031 0.018
Net realized and unrealized gain(loss) on investment.. -- 0.000 -- -- --
------- ------- ------- ------- -------
Total from investment operations...................... 0.002 0.006 0.012 0.031 0.018
Less distributions:
Dividends from net investment income.................. ( 0.002) ( 0.006) ( 0.012) ( 0.031) ( 0.018)
Net realized gain on investment....................... -- ( 0.000) -- -- --
------- ------ ------- ------- -------
Total distributions................................... ( 0.002) ( 0.006) ( 0.012) ( 0.031) ( 0.018)
------ ------ ------ ------ ------
Net asset value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return............................................. 0.21% 0.59% 1.23% 3.11% 1.84%(a)
Ratios/Supplemental Data
Net assets, end of period (000).......................... $53,616 $79,783 $89,963 $78,428 $65,745
Ratios to average net assets:
Expenses (b).......................................... 0.83% 0.82% 0.85% 0.87% 0.86%(c)
Net investment income................................. 0.21% 0.59% 1.27% 3.03% 2.59%(c)
Expenses paid indirectly.............................. 0.00% 0.00% 0.00% 0.00% 0.00%(c)
Shareholder servicing fees waived..................... 0.00% 0.00% 0.00% 0.00% 0.00%(c)
<FN>
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
7. Financial Highlights (Continued)
Year November 22, 2002
Advantage Shares Ended (Commencement of Offering) to
- ---------------- April 30, 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
----------- -----------
Income from investment operations:
Net investment income................................. 0.001 0.001
Net realized and unrealized gain(loss) on investment.. -- 0.000
----------- -----------
Total from investment operations...................... 0.001 0.001
Less distributions:
Dividends from net investment income.................. ( 0.001 ) ( 0.001 )
Net realized gain on investment....................... -- ( 0.000 )
----------- ---------
Total distributions................................... ( 0.001 ) ( 0.001 )
----------- ---------
Net asset value, end of period........................... $ 1.00 $ 1.00
=========== ==========
Total Return............................................. 0.15% 0.15%(a)
Ratios/Supplemental Data
Net assets, end of period (000).......................... $ 36,685 $ 57,249
Ratios to average net assets:
Expenses (b).......................................... 0.89% 0.90%(c)
Net investment income................................. 0.14% 0.33%(c)
Expenses paid indirectly.............................. 0.00% 0.00%(c)
Distribution and shareholder servicing fees waived.... 0.39% 0.37%(c)
<FN>
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 net assets 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, 2004, 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), which 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, 2004 by correspondence with the custodian, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
June 8, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION
(UNAUDITED)
================================================================================
Directors and Officers Information
April 30, 20041
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Position(s) Term of Principal Occupation(s) Number of Other
Name, Address2, Held with Office During Past Portfolios in Fund Directorships
and Age Fund and Length of 5 Years Complex held by
Time Served3 Overseen by Director
Director or Officer
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Disinterested Directors:
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Edward A. Kuczmarksi, Director 1984 Certified Public Director of one Trustee of the
Age 54 Accountant and Partner of portfolio Empire Builder
Hays & Company LLP since Tax Free Bond
1980. Fund
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Caroline E. Newell, Director 1984 Director of the Park Director of one Trustee of the
Age 63 Avenue Church Day School portfolio Empire Builder
since 2001. Director of Tax Free Bond
Le Chateau des Enfants Fund
and the American School
in Switzerland, both
since 1990.
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
John P. Steines, Director 1984 Professor of Law, New Director of one Trustee of the
Age 55 York University School of portfolio Empire Builder
Law since 1980. Tax Free Bond
Fund
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
<FN>
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 (212) 830-5200.
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.
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Directors and Officers Information
April 30, 20041 (continued)
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Position(s) Term of Principal Occupation(s) Number of Other
Name, Address2, Held with Office During Past Portfolios in Fund Directorships
and Age Fund and Length of 5 Years Complex held by
Time Served3 Overseen by Director
Director or Officer
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Interested Directors/Officers:
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Steven W. Duff, President and 1994 Manager and President of Director/Trustee N/A
Age 50 Director4 Reich & Tang Asset and/or Officer of
Management, LLC ("RTAM, sixteen portfolios
LLC"), a registered
Investment Advisor.
Associated with RTAM, LLC
since 1994.
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Molly Flewharty, Vice President 1986 Senior Vice President of Officer of sixteen N/A
Age 53 RTAM, LLC. Associated portfolios
with RTAM, LLC since 1977.
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Dana E. Messina, Vice President 1986 Executive Vice President Officer of N/A
Age 47 of RTAM, LLC. Associated thirteen portfolios
with RTAM, LLC since 1980.
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Richard De Sanctis, Treasurer and 1992 Executive Vice President Officer of sixteen N/A
Age 47 Assistant and CFO of RTAM, LLC. portfolios
Secretary Associated with RTAM, LLC
since 1990.
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
Rosanne Holtzer, Secretary and 1998 Senior Vice President of Officer of sixteen N/A
Age 39 Assistant RTAM, LLC. Associated portfolios
Treasurer with RTAM, LLC since 1986.
- ---------------------- --------------- -------------- --------------------------- -------------------- -----------------
<FN>
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 (212) 830-5200.
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 advisor.
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- -------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not authorized
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
100 Church Street, 10th Floor
New York, New York 10286
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
NY04/04A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
April 30, 2004
- --------------------------------------------------------------------------------
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 04/30/2004 FYE 04/30/2003
4(a) Audit Fees $23,000 $20,500
-------------- ----------------
4(b) Audit Related Fees $0 $0
-------------- ----------------
4(c) Tax Fees $3,000 $3,000
-------------- ----------------
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.
4(e)(2) None.
4(f) Not applicable.
4(g) $3,000 and $20,000, 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, 2004. $3,000 and $17,600, 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, 2003.
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 registrant's second fiscal
half-year 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/Rosanne Holtzer, Secretary
Rosanne Holtzer
Date July 6, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)*/s/Steven W. Duff, President
Steven W. Duff
Date July 6, 2004
By (Signature and Title)*/s/Richard DeSanctis, Treasurer
Richard DeSanctis
Date July 6, 2004
* Print the name and title of each signing officer under his or her signature.