Independent Accountant's Report
To the Board of Directors
Dreyfus Strategic Municipals, Inc.
We have examined management's assertion about Dreyfus
Strategic Municipals, 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 February 28, 2002, 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 standards
established by the American Institute of Certified Public
Accountants 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 February 28, 2002, and with respect to agreement of
security and similar investments purchases and sales, for
the period from September 30, 2001 (the date of last
examination) through February 28, 2002;
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. Our examination does not provide a
legal determination on the Company's compliance with
specified requirements.
In our opinion, management's assertion that Dreyfus
Strategic Municipals, 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
February 28, 2002 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 Strategic Municipals, Inc.
and the Securities and Exchange Commission and should
not be used for any other purpose.
ERNST & YOUNG LLP
New York, New York
April 29, 2002
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- 5245 April 29, 2002
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 Strategic
Municipals, 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
February 28, 2002.
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 February 28, 2002 with respect to securities
and similar investments reflected in the investment account
of the Company.
Dreyfus Strategic Municipals, Inc.
By:
/s/Jim Windels
Jim Windels,
Treasurer
The Dreyfus Corporation