Report of Independent Registered Public Accounting Firm
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 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;
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
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
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 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
November 5, 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- 5245 11/05/2003
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 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 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 Strategic Municipals, Inc.
By:
/s/Jim Windels
Jim Windels,
Treasurer
The Dreyfus Corporation