Report of Independent Registered Public Accounting Firm
To the Board of Directors
Dreyfus Municipal Income, Inc.
We have examined management's assertion about Dreyfus Municipal Income,
Inc.'s (the "Company") compliance with the requirements of subsections (b)
and (c) of Rule 17f-2 of the Investment Company Act of 1940 ("the Act") as
of September 30, 2003, with respect to securities and similar investments
reflected in the investment account of the Company, included in the
accompanying Management Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940. Management is responsible
for the Company's compliance with those requirements. Our responsibility is
to express an opinion on management's assertion about the Company's compliance
based on our examination.
Our examination was made in accordance with attestation standards established
by the Public Company Accounting Oversight Board (United States) and
accordingly, included examining, on a test basis, evidence about the Company's
compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. Included among our procedures were
the following tests performed as of September 30, 2003, and with respect to
agreement of security and similar investments purchases and sales, for the
period from May 31, 2003 (the date of last examination) through September 30,
2003;
Count and inspection of all securities and similar investments located in
the vault of Mellon Bank in New York, without prior notice to management;
Confirmation of all securities and similar investments held by institutions
in book entry form (i.e., the Federal Reserve Bank of Boston, the Depository
Trust Company and the Participant Trust Company);
Reconciliation of confirmation results as to all such securities and
investments to the books and records of the Company and Mellon Bank;
Confirmation of all repurchase agreements, if any, with brokers/banks and
agreement of underlying collateral with Mellon Bank's records;
Agreement of investment purchases and sales or maturities since our last
examination from the books and records of the Company to broker confirmations.
We believe that our examination provides a reasonable basis for our opinion.
Ourexamination does not provide a legal determination on the Company's
compliance with specified requirements.
In our opinion, management's assertion that Dreyfus Municipal Income, Inc.
was in compliance with the requirements of subsections (b) and (c) of Rule
17f-2 of the Investment Company Act of 1940 as of September 30, 2003 with
respect to securities and similar investments reflected in the investment
account of the Company is fairly stated, in all material respects.
This report is intended solely for the information and use of management of
Dreyfus Municipal Income, Inc. and the Securities and Exchange Commission
and should not be used for any other purpose.
ERNST & YOUNG LLP
New York, New York
October 11, 2003
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-17f-2
Certificate of Accounting or Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 [17 CRF 270.17f-2]
1. Investment Company Act File Date examination
Number: completed:
811- 5652 10/11/2003
2. State Identification Number:
AL AK AZ AR CA CO
CT DE DC FL GA HI
ID IL IN IA KS KY
LA ME MD MA MI MN
MS MO MI NE NV NH
NJ NM NY NC ND OH
OK OR PA RI SC SD
TN TX UT VT VA WA
WV WI WY PUERTO
RICO
Other
Specify:
3. Exact name of investment company as specified in registration statement:
4. Address of principal executive office: (number, street, city, state,
zip code)
200 Park Avenue, 55th Floor , New York, NY 10166
INSTRUCTIONS
The Form must be completed by investment companies that have custody of
securities or similar investments
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance
with Rule 17f-2 under the Act and applicable state law, examine securities
and similar investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the
original and one copy with the Securities and Exchange Commissions's
principal office in Washington D.C., one copy with the regional office for
the region in which the investment company's principal business operations
are conducted, and one copy with the appropriate state administrator(s),
if applicable.
THIS FORM MUST BE GIVEN TO YOUR
INDEPENDENT PUBLIC ACCOUNTANT
Management Statement Regarding Compliance with
Certain Provisions
of the Investment Company Act of 1940
We, as members of management of Dreyfus Municipal Income, Inc. (the "Company"),
are responsible for complying with the requirements of subsections (b) and (c)
of Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act of 1940. We are also responsible
for establishing and maintaining effective controls over compliance with those
requirements. We have performed an evaluation of the Company's compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 as of
September 30, 2003.
Based on this evaluation, we assert that the Company was in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of September 30, 2003 with respect to securities and similar
investments reflected in the investment account of the Company.
Dreyfus Municipal Income, Inc.
By:
/s/Jim Windels
Jim Windels,
Treasurer
The Dreyfus Corporation