N-CSRS 1 formncsr101.htm SEMI-ANNUAL REPORT formncsr101.htm - Generated by SEC Publisher for SEC Filing

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number

811- 6014

 

 

 

DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.

 

 

(Exact name of Registrant as specified in charter)

 

 

 

 

 

 

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York  10166

 

 

(Address of principal executive offices)        (Zip code)

 

 

 

 

 

Michael A. Rosenberg, Esq.

200 Park Avenue

New York, New York  10166

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code: 

(212) 922-6000

 

 

Date of fiscal year end:

 

11/30

 

Date of reporting period:

5/31/11

 

             

 

 

1


 

 

 

FORM N-CSR

Item 1.      Reports to Stockholders.

 

2


 




Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.




 

Contents

 

THE FUND

2     

A Letter from the Chairman and CEO

3     

Discussion of Fund Performance

6     

Understanding Your Fund’s Expenses

6     

Comparing Your Fund’s Expenses With Those of Other Funds

7     

Statement of Investments

13     

Statement of Assets and Liabilities

14     

Statement of Operations

15     

Statement of Changes in Net Assets

16     

Financial Highlights

17     

Notes to Financial Statements

 

FOR MORE INFORMATION

 

Back Cover



Dreyfus Connecticut 
Municipal Money Market Fund, Inc. 

 

The Fund 

 


A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Connecticut Municipal Money Market Fund, Inc., covering the six-month period from December 1, 2010, through May 31, 2011. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

The U.S. economy appears to have hit a soft patch in the spring of 2011 after accelerating over the second half of 2010. Disappointing labor, housing and manufacturing data have come at a time of higher energy prices and some tightening of monetary policy in global markets. In our view, the current slowdown should be relatively brief as the world recovers from the supply shocks created by weather impacts on food production, the decline in Libyan oil exports and supply-chain disruptions stemming from Japan’s natural and nuclear disasters. Yields of money market instruments remained near zero percent in this choppy economic environment, as the Federal Reserve Board maintained its aggressively accommodative policy stance.

We remain optimistic as the U.S. economy moves through the middle stages of its cycle. Indeed, global macroeconomic policy generally has remained stimulative despite the recent efforts of some central banks to forestall inflationary pressures. We continue to expect sustainable economic growth, a rising but volatile uptrend in inflation and an improving U.S. labor market in the months ahead.As always, to determine how these forces may affect your investments, we urge you to talk regularly with your financial advisor.

Thank you for your continued confidence and support.

Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
June 15, 2011

2




DISCUSSION OF FUND PERFORMANCE

For the period of December 1, 2010, through May 31, 2011, as provided by Bill Vasiliou, Portfolio Manager

Fund and Market Performance Overview

For the six-month period ended May 31, 2011, Dreyfus Connecticut Municipal Money Market Fund produced an annualized yield of 0.00%. Taking into account the effects of compounding, the fund produced an annualized effective yield of 0.00%.1

Although investors grew more optimistic about the economy early in the reporting period and yields of longer-term municipal bonds climbed, yields of short-term municipal money market instruments remained anchored near zero percent by a historically low federal funds rate.

The Fund’s Investment Approach

The fund seeks as high a level of current income exempt from federal and Connecticut state income taxes as is consistent with the preservation of capital and the maintenance of liquidity.

To pursue this goal, the fund normally invests substantially all of its assets in short-term, high-quality municipal obligations that provide income exempt from federal and Connecticut state personal income taxes.The fund also may invest in high-quality, short-term structured notes, which are derivative instruments whose value is tied to underlying municipal obligations.

In managing the fund, we normally employ two primary strategies. First, we attempt to add value by constructing a portfolio of high-quality municipal money market instruments that provide income exempt from federal and Connecticut state personal income taxes. Second, we actively manage the fund’s weighted average maturity based on our anticipation of interest-rate trends and supply-and-demand changes in Connecticut’s short-term municipal marketplace, while anticipating the liquidity needs of the fund.

The Fund 3



DISCUSSION OF FUND PERFORMANCE (continued)

For example, if we expect an increase in short-term supply, we may reduce the fund’s weighted average maturity, which should better position the fund to purchase new securities with higher yields, if higher yields materialize.Yields tend to rise when there is an increase in new-issue supply competing for investor interest. New securities, which are generally issued with maturities in the one-year range, may lengthen the fund’s weighted average maturity if purchased. If we anticipate limited new-issue supply, we may extend the fund’s weighted average maturity to maintain prevailing yields for as long as we deem appropriate. At other times, we typically try to maintain a weighted average maturity that reflects our view of short-term interest-rate trends, liquidity needs and future supply-and-demand considerations.

Low Yields Persisted Despite a Stronger Economic Recovery

The reporting period began during an upturn in economic sentiment sparked by a new quantitative easing program from the Federal Reserve Board (the “Fed”), improved hiring activity and greater consumer spending. Expectations of continued economic growth drove yields of longer-term U.S.Treasury securities and highly rated municipal bonds higher by the end of 2010.

However, many analysts were surprised by a lower-than-expected estimate of 1.8% annualized GDP growth for the first quarter of 2011, and surging energy prices added to their economic concerns. Nonetheless, the Fed left the overnight federal funds rate in a range between 0% and 0.25%. Consequently, tax-exempt money market instruments continued to offer yields of little more than zero percent through the reporting period’s end.

The supply of newly issued municipal money market instruments remained ample in December 2010, and the expiration of the Build America Bonds program at the end of the year had relatively little impact on issuance volumes during the first five months of 2011. Meanwhile, demand for municipal money market instruments remained robust as individuals sought to shelter income from rising state taxes and institutional investors searched for alternatives to taxable money market instruments.

4



Like most states and municipalities, Connecticut reduced spending and raised some taxes to bridge its budget deficit during the reporting period. Although tax revenues remain below prerecession levels, receipts have trended up over the past year, and several banks have initiated programs providing municipal issuers with credit. These positive developments appear likely to continue.

Focus on Liquidity and Capital Preservation

We have maintained a conservative investment posture, emphasizing direct, high-quality municipal obligations and commercial paper that were deemed creditworthy by our analysts.We also favored instruments backed by pledged tax appropriations or dedicated revenues.We generally shied away from general obligation debt and instruments issued by localities that depend heavily on state aid. Finally, we maintained the fund’s weighted average maturity in a range that was roughly in line with industry averages, as it has made little sense to us to incur the interest-rate risks that longer-dated instruments typically entail.

Increased Supply Could Lift Yields

Despite ongoing signs of economic recovery and higher commodity prices, the Fed is expected to keep short-term interest rates at current low levels.Therefore, we believe the prudent course continues to be an emphasis on preservation of capital and liquidity. However, we expect the supply of newly issued tax-exempt money market instruments to increase later in 2011, which could put upward pressure on yields.

June 15, 2011

An investment in the fund is not insured or guaranteed by the FDIC or any other government agency.Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Short-term municipal securities holdings, involve credit and liquidity risks and risk of principal loss.

1  Annualized effective yield is based upon dividends declared daily and reinvested monthly. Past 
  performance is no guarantee of future results.Yields fluctuate. Income may be subject to state and 
  local taxes for non-Connecticut residents, and some income may be subject to the federal alternative 
  minimum tax (AMT) for certain investors.Yields provided reflect the absorption of certain fund 
  expenses by The Dreyfus Corporation pursuant to an undertaking in effect that may be extended, 
  terminated or modified at any time. Had these expenses not been absorbed, fund yields would 
  have been lower. 

 

The Fund 5



UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Connecticut Municipal Money Market Fund, Inc. from December 1, 2010 to May 31, 2011. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended May 31, 2011

Expenses paid per $1,000  $ 1.65 
Ending value (after expenses)  $1,000.00 

 

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended May 31, 2011

Expenses paid per $1,000  $ 1.66 
Ending value (after expenses)  $1,023.29 

 

† Expenses are equal to the fund’s annualized expense ratio of .33%, multiplied by the average account value over the 
period, multiplied by 182/365 (to reflect the one-half year period). 

 

6



STATEMENT OF INVESTMENTS

May 31, 2011 (Unaudited)

Short-Term  Coupon  Maturity  Principal     
Investments—96.0%  Rate (%)  Date  Amount ($)    Value ($) 
Connecticut,           
GO Notes, BAN  4.00  6/1/11  2,565,000    2,565,000 
Connecticut,           
GO Notes, Refunding  5.50  12/15/11  250,000    256,628 
Connecticut,           
Special Tax Obligation           
(Transportation           
Infrastructure Purposes)  4.00  8/1/11  200,000    201,078 
Connecticut,           
Special Tax Obligation,           
Refunding (Transportation           
Infrastructure Purposes)  5.50  10/1/11  200,000    203,192 
Connecticut,           
Special Tax Obligation,           
Refunding (Transportation           
Infrastructure Purposes)  2.00  12/1/11  250,000    251,928 
Connecticut,           
State Revolving Fund General           
Revenue, Refunding  4.00  6/1/11  200,000    200,000 
Connecticut,           
State Revolving Fund General           
Revenue, Refunding  2.00  10/1/11  400,000    401,995 
Connecticut Development Authority,           
Airport Hotel Revenue,           
Refunding (Bradley Airport           
Hotel Project) (LOC; TD Bank)  0.16  6/7/11  4,000,000  a  4,000,000 
Connecticut Development Authority,           
IDR (AcuCut, Inc. Project)           
(LOC; Wells Fargo Bank)  0.37  6/7/11  860,000  a  860,000 
Connecticut Development Authority,           
IDR (Lapham-Hickey Steel           
Corporation Project)           
(LOC; Bank of Montreal)  0.38  6/7/11  4,995,000  a  4,995,000 
Connecticut Development Authority,           
Water Facility Revenue,           
Refunding (Connecticut Water           
Company Project) (LOC; RBS           
Citizens NA)  0.48  6/7/11  2,125,000  a  2,125,000 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(Eastern Connecticut Health           
Network Issue) (LOC; TD Bank)  0.18  6/7/11  5,300,000  a  5,300,000 

 

The Fund 7



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Short-Term  Coupon  Maturity  Principal     
Investments (continued)  Rate (%)  Date  Amount ($)    Value ($) 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(Hamden Hall Country Day           
School Issue) (LOC; RBS           
Citizens NA)  0.30  6/7/11  3,900,000  a  3,900,000 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(Hospital for Special Care           
Issue) (LOC; FHLB)  0.18  6/7/11  4,185,000  a  4,185,000 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(Hospital of Saint Raphael           
Issue) (LOC; KBC Bank)  0.28  6/7/11  4,000,000  a  4,000,000 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(Putters Program) (Salisbury           
School Issue) (Insured;           
Assured Guaranty Municipal           
Corp. and Liquidity Facility;           
JPMorgan Chase Bank)  0.28  6/7/11  1,500,000  a,b  1,500,000 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(Taft School Issue) (LOC;           
Wells Fargo Bank)  0.25  6/7/11  1,800,000  a  1,800,000 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(The Children’s School Issue)           
(LOC; JPMorgan Chase Bank)  0.22  6/7/11  4,460,000  a  4,460,000 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(The Hotchkiss School Issue)           
(Liquidity Facility; U.S. Bank NA)  0.12  6/7/11  4,300,000  a  4,300,000 
Connecticut Health and Educational           
Facilities Authority, Revenue           
(United Methodist Home of           
Sharon, Inc. Issue) (LOC;           
Wells Fargo Bank)  0.25  6/7/11  4,605,000  a  4,605,000 

 

8



Short-Term  Coupon  Maturity  Principal     
Investments (continued)  Rate (%)  Date  Amount ($)    Value ($) 
Connecticut Health and           
Educational Facilities           
Authority, Revenue           
(Westminster School Issue)           
(LOC; Bank of America)  0.25  6/7/11  6,105,000  a  6,105,000 
Connecticut Housing Finance           
Authority, GO Notes (Housing           
Mortgage Finance Program)           
(Liquidity Facility; JPMorgan           
Chase Bank)  0.12  6/1/11  1,500,000  a  1,500,000 
Connecticut Housing Finance           
Authority, Housing Mortgage           
Finance Revenue (Liquidity           
Facility; FHLB)  0.17  6/7/11  1,800,000  a  1,800,000 
Connecticut Housing Finance           
Authority, Revenue           
(Corporation for Independent           
Living Realty Incorporated           
Issue) (LOC; HSBC Bank USA)  0.18  6/7/11  4,000,000  a  4,000,000 
Connecticut Housing Finance           
Authority, Revenue (Housing           
Mortgage Finance Program)  0.45  11/15/11  1,000,000    1,000,000 
Connecticut Housing Finance           
Authority, Revenue (Housing           
Mortgage Finance Program)           
(Liquidity Facility; FHLB)  0.20  6/7/11  6,410,000  a  6,410,000 
Hamden,           
GO Notes, BAN  2.00  8/24/11  1,725,000    1,730,211 
Hartford,           
GO Notes, BAN  2.00  4/12/12  2,000,000    2,023,665 
Milford,           
GO Notes  2.50  11/1/11  165,000    166,273 
New Canaan Housing Authority,           
Revenue (The Village at Waveny           
Care Center Project) (LOC;           
Bank of America)  0.18  6/7/11  2,300,000  a  2,300,000 

 

The Fund 9



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Short-Term  Coupon  Maturity  Principal   
Investments (continued)  Rate (%)  Date  Amount ($)  Value ($) 
Puttable Floating Option Tax         
Exempt Receipts (Connecticut         
Health and Educational         
Facilities Authority, Revenue         
(Windham Community Memorial         
Hospital Issue)) (Liquidity         
Facility; Bank of America         
and LOC; Bank of America)  0.45  6/7/11  1,000,000 a,b  1,000,000 
Shelton,         
GO Notes, BAN  1.25  8/2/11  3,160,000  3,164,112 
Stafford,         
GO Notes, BAN  1.50  8/8/11  3,500,000  3,505,636 
 
Total Investments (cost $84,814,718)      96.0%  84,814,718 
 
Cash and Receivables (Net)      4.0%  3,522,526 
 
Net Assets      100.0%  88,337,244 

 

a Variable rate demand note—rate shown is the interest rate in effect at May 31, 2011. Maturity date represents the 
next demand date, or the ultimate maturity date if earlier. 
b Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in 
transactions exempt from registration, normally to qualified institutional buyers.At May 31, 2011, these securities 
amounted to $2,500,000 or 2.8% of net assets. 

 

10



Summary of Abbreviations     
 
ABAG  Association of Bay Area Governments  ACA  American Capital Access 
AGC  ACE Guaranty Corporation  AGIC  Asset Guaranty Insurance Company 
AMBAC  American Municipal Bond  ARRN  Adjustable Rate Receipt Notes 
  Assurance Corporation     
BAN  Bond Anticipation Notes  BPA  Bond Purchase Agreement 
CIFG  CDC Ixis Financial Guaranty  COP  Certificate of Participation 
CP  Commercial Paper  EDR  Economic Development Revenue 
EIR  Environmental Improvement Revenue  FGIC  Financial Guaranty Insurance 
      Company 
FHA  Federal Housing Administration  FHLB  Federal Home Loan Bank 
FHLMC  Federal Home Loan Mortgage  FNMA  Federal National 
  Corporation    Mortgage Association 
GAN  Grant Anticipation Notes  GIC  Guaranteed Investment Contract 
GNMA  Government National  GO  General Obligation 
  Mortgage Association     
HR  Hospital Revenue  IDB  Industrial Development Board 
IDC  Industrial Development Corporation  IDR  Industrial Development Revenue 
LOC  Letter of Credit  LOR  Limited Obligation Revenue 
LR  Lease Revenue  MFHR  Multi-Family Housing Revenue 
MFMR  Multi-Family Mortgage Revenue  PCR  Pollution Control Revenue 
PILOT  Payment in Lieu of Taxes  PUTTERS Puttable Tax-Exempt Receipts 
RAC  Revenue Anticipation Certificates  RAN  Revenue Anticipation Notes 
RAW  Revenue Anticipation Warrants  RRR  Resources Recovery Revenue 
SAAN  State Aid Anticipation Notes  SBPA  Standby Bond Purchase Agreement 
SFHR  Single Family Housing Revenue  SFMR  Single Family Mortgage Revenue 
SONYMA  State of New York Mortgage Agency  SWDR  Solid Waste Disposal Revenue 
TAN  Tax Anticipation Notes  TAW  Tax Anticipation Warrants 
TRAN  Tax and Revenue Anticipation Notes  XLCA  XL Capital Assurance 

 

The Fund 11



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Summary of Combined Ratings (Unaudited)   
 
Fitch  or  Moody’s  or  Standard & Poor’s  Value (%) 
F1+,F1    VMIG1,MIG1,P1    SP1+,SP1,A1+,A1  89.4 
F2    VMIG2,MIG3,P2    SP2,A2  2.5 
AAA,AA,Ac    Aaa,Aa,Ac    AAA,AA,Ac  5.0 
Not Ratedd    Not Ratedd    Not Ratedd  3.1 
          100.0 

 

† Based on total investments. 
c Notes which are not F, MIG and SP rated are represented by bond ratings of the issuers. 
d Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to 
be of comparable quality to those rated securities in which the fund may invest. 

 

See notes to financial statements.

12



STATEMENT OF ASSETS AND LIABILITIES

May 31, 2011 (Unaudited)

  Cost  Value 
Assets ($):     
Investments in securities—See Statement of Investments  84,814,718  84,814,718 
Cash    1,410,852 
Receivable for investment securities sold    2,000,055 
Interest receivable    195,675 
Prepaid expenses    15,480 
    88,436,780 
Liabilities ($):     
Due to The Dreyfus Corporation and affiliates—Note 2(b)    19,504 
Payable for shares of Common Stock redeemed    20,435 
Accrued expenses    59,597 
    99,536 
Net Assets ($)    88,337,244 
Composition of Net Assets ($):     
Paid-in capital    88,337,451 
Accumulated net realized gain (loss) on investments    (207) 
Net Assets ($)    88,337,244 
Shares Outstanding     
(1 billion shares of $.001 par value Common Stock authorized)    88,348,894 
Net Asset Value, offering and redemption price per share ($)    1.00 
 
See notes to financial statements.     

 

The Fund 13



STATEMENT OF OPERATIONS

Six Months Ended May 31, 2011 (Unaudited)

Investment Income ($):   
Interest Income  162,267 
Expenses:   
Management fee—Note 2(a)  244,943 
Shareholder servicing costs—Note 2(b)  39,738 
Auditing fees  20,134 
Legal fees  17,032 
Prospectus and shareholders’ reports  16,196 
Registration fees  10,674 
Directors’ fees and expenses—Note 2(c)  9,373 
Custodian fees—Note 2(b)  5,870 
Miscellaneous  11,124 
Total Expenses  375,084 
Less—reduction in expenses due to undertaking—Note 2(a)  (212,761) 
Less—reduction in fees due to earnings credits—Note 2(b)  (63) 
Net Expenses  162,260 
Investment Income—Net, representing net increase   
in net assets resulting from operations  7 
 
See notes to financial statements.   

 

14



STATEMENT OF CHANGES IN NET ASSETS

  Six Months Ended   
  May 31, 2011  Year Ended 
  (Unaudited)  November 30, 2010 
Operations ($):     
Investment income—net  7  22 
Net realized gain (loss) on investments    (207) 
Net Increase (Decrease) in Net Assets     
Resulting from Operations  7  (185) 
Dividends to Shareholders from ($):     
Investment income—net  (7)  (22) 
Capital Stock Transactions ($1.00 per share):     
Net proceeds from shares sold  91,708,921  195,565,659 
Dividends reinvested  7  22 
Cost of shares redeemed  (99,573,872)  (269,494,984) 
Increase (Decrease) in Net Assets     
from Capital Stock Transactions  (7,864,944)  (73,929,303) 
Total Increase (Decrease) in Net Assets  (7,864,944)  (73,929,510) 
Net Assets ($):     
Beginning of Period  96,202,188  170,131,698 
End of Period  88,337,244  96,202,188 
 
See notes to financial statements.     

 

The Fund 15



FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

Six Months Ended           
  May 31, 2011    Year Ended November 30,   
  (Unaudited)  2010  2009  2008  2007  2006 
Per Share Data ($):             
Net asset value,             
beginning of period  1.00  1.00  1.00  1.00  1.00  1.00 
Investment Operations:             
Investment income—net  .000a  .000a  .002  .019  .030  .027 
Distributions:             
Dividends from             
investment income—net  (.000)  (.000)a (.002) (.019)  (.030)  (.027) 
Net asset value, end of period  1.00  1.00  1.00  1.00  1.00  1.00 
Total Return (%)  .00b,c  .00b  .18  1.96  3.05  2.73 
Ratios/Supplemental Data (%):           
Ratio of total expenses             
to average net assets  .77c  .71  .66  .64  .66  .68 
Ratio of net expenses             
to average net assets  .33c  .37  .60  .63  .64  .65 
Ratio of net investment income             
to average net assets  .00b,c  .00b  .18  1.90  3.01  2.70 
Net Assets, end of period             
($ x 1,000)  88,337  96,202  170,132  204,523  185,726  137,772 

 

a  Amount represents less than $.001 per share. 
b  Amount represents less than .01%. 
c  Annualized. 

 

See notes to financial statements.

16



NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies

Dreyfus Connecticut Municipal Money Market Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open-end management investment company.The fund’s investment objective is to seek as high a level of current income exempt from federal and Connecticut state income taxes as is consistent with the preservation of capital and the maintenance of liquidity.The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

It is the fund’s policy to maintain a continuous net asset value per share of $1.00; the fund has adopted certain investment, portfolio valuation and dividend and distribution policies to enable it to do so.There is no assurance, however, that the fund will be able to maintain a stable net asset value per share of $1.00.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

The Fund 17



NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(a) Portfolio valuation: Investments in securities are valued at amortized cost in accordance with Rule 2a-7 of the Act, which has been determined by the Board of Directors to represent the fair value of the fund’s investments.

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value.This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market securities are valued using amortized cost, in accordance with rules under the Act. Generally, amortized cost

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approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The following is a summary of the inputs used as of May 31, 2011 in valuing the fund’s investments:

  Short-Term 
Valuation Inputs  Investments ($) 
Level 1—Unadjusted Quoted Prices   
Level 2—Other Significant Observable Inputs  84,814,718 
Level 3—Significant Unobservable Inputs   
Total  84,814,718 

 

  See Statement of Investments for additional detailed categorizations. 

 

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Cost of investments represents amortized cost.

The fund follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the fund.

(c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains.

The Fund 19



NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended May 31, 2011, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the three-year period ended November 30, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

The fund has an unused capital loss carryover of $207 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to November 30, 2010. If not applied, the carryover expires in fiscal 2018.

The tax character of distributions paid to shareholders during the fiscal year ended November 30, 2010 was all tax exempt income. The tax character of current year distributions will be determined at the end of the current fiscal year.

At May 31, 2011, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

NOTE 2—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement with the Manager, the management fee is computed at the annual rate of .50% of the value of the fund’s average daily net assets and is payable monthly.

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The Manager has undertaken to reimburse expenses in the event that current yields drop below a certain level. Such expense limitations may fluctuate daily, are voluntary and not contractual and may be terminated at any time. The reduction in expenses, pursuant to the undertaking, amounted to $212,761 during the period ended May 31, 2011.

(b) Under the Shareholder Services Plan, the fund reimburses the Distributor an amount not to exceed an annual rate of .25% of the value of the fund’s average daily net assets for certain allocated expenses of providing personal services and/or maintaining shareholder accounts.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended May 31, 2011, the fund was charged $20,482 pursuant to the Shareholder Services Plan.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended May 31, 2011, the fund was charged $11,604 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

The fund has arrangements with the custodian and cash management bank whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

The fund compensates The Bank of NewYork Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended May 31,

The Fund 21



NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

2011, the fund was charged $1,117 pursuant to the cash management agreement, which is included in Shareholder servicing costs in the Statement of Operations. These fees were partially offset by earnings credits of $63.

The fund also compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. During the period ended May 31, 2011, the fund was charged $5,870 pursuant to the custody agreement.

During the period ended May 31, 2011, the fund was charged $3,146 for services performed by the Chief Compliance Officer.

The components of “Due toThe Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $37,636, shareholder services plan fees $4,000, custodian fees $5,683, chief compliance officer fees $3,006 and transfer agency per account fees $3,350, which are offset against an expense reimbursement currently in effect in the amount of $34,171.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 3—Securities Transactions:

The fund is permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board ofTrustees.The procedures have been designed to ensure that any purchase or sale of securities by the fund from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment adviser), common Trustees and/or common officers, complies with Rule 17a-7 of the Act. During the period ended May 31, 2011, the fund engaged in purchases and sales of securities pursuant to Rule 17a-7 of the Act amounting to $3,000,000 and $2,000,000, respectively.

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NOTES







 

Item 2.      Code of Ethics.

                  Not applicable.

Item 3.      Audit Committee Financial Expert.

                  Not applicable.

Item 4.      Principal Accountant Fees and Services.

                  Not applicable.

Item 5.      Audit Committee of Listed Registrants.

                  Not applicable.

Item 6.      Investments.

(a)              Not applicable.

Item 7.      Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

                  Not applicable.

Item 8.      Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9.      Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

                  Not applicable.  [CLOSED END FUNDS ONLY]

Item 10.    Submission of Matters to a Vote of Security Holders.

                  There have been no material changes to the procedures applicable to Item 10.

Item 11.    Controls and Procedures.

(a)        The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)        There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 

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Item 12.    Exhibits.

(a)(1)   Not applicable.

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3)   Not applicable.

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

 

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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.

DREYFUS CONNECTICUT MUNICIPAL MONEY MARKET FUND, INC.

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak,

            President

 

Date:

July 25, 2011

 

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:       /s/ Bradley J. Skapyak

             Bradley J. Skapyak,

            President

 

Date:

July 25, 2011

 

By:       /s/ James Windels

            James Windels,

            Treasurer

 

Date:

July 25, 2011

 

 

 

5


 

 

EXHIBIT INDEX

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.  (EX-99.CERT)

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.  (EX-99.906CERT)

 

6