1r4017f2-033103.txt SECURITIES AND EXCHANGE COMMISSION ------------------------ WASHINGTON, D.C. 20549 OMB Approval FORM N-17f-2 ------------------------ OMB Number 3235-0360 Certificate of Accounting of Securities and Similar Expires: July 31, 1994 Investments in the Custody of Estimated average burden Management Investment Companies hours per response. 0.05 Pursuant to Rule 17f-2 [17 CFR 270.17f-2] ----------------------------------------------------------------------------- 1. Investment Company Act File Number: 811-524 Date examination completed: March 31, 2003 ----------------------------------------------------------------------------- 2. State identification Number: N/A -------------------------------------------------------------------------- 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 MT 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: Dreyfus High Yield Strategies Fund ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 4. Address of principal executive office (number, street, city, state, zip code) 200 Park Avenue, 55th Floor, New York, NY10166 ---------------------------------------------------------------------------- Independent Accountants' Report The Board of Trustees of Dreyfus High Yield Strategies Fund We have examined management's assertion, included in the accompanying Management Assertion Regarding Compliance With Certain Provisions of the Investment Company Act of 1940, that the Dreyfus High Yield Strategies Fund (the "Fund") complied with the requirements of subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940 as of March 31, 2003. Management is responsible for the Fund's compliance with those requirements. Our responsibility is to express an opinion on management's assertion about the Fund's compliance based on our examination. Our examination was made in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Fund'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 March 31, 2003, and with respect to agreement of security purchases and sales, for the period from August 31, 2002 (the date of our last examination) through March 31, 2003: 1) Examination of Mellon Bank N.A.'s (the "Custodian") security position reconciliations for all securities held by sub custodians and in book entry form; 2) Confirmation of all securities hypothecated, pledged or placed in escrow with brokers; 3) Inspection of documentation of other securities held in safekeeping by the Custodian but not included in 1) and 2) above; 4) Reconciliation between the Fund's accounting records and the custody records as of March 31, 2003 and verified reconciling items; 5) Agreement of pending trade activity for the Fund as of March 31, 2003 to their corresponding subsequent cash statements; 6) Agreement of Dreyfus Family of Funds' trade tickets for six purchases and nine sales or maturities for the period August 31, 2002 (the date of our last examination) through March 31, 2003, to the books and records of the Fund noting that they had been properly recorded and subsequently settled; 7) Confirmation of all repurchase agreements with brokers/banks and agreement of underlying collateral with the Fund's records; 8) We reviewed Mellon Global Securities Services Report on Controls Placed in Operation and Tests of Operating Effectiveness ("SAS 70 Report") for the period January 1, 2002 through December 31, 2002 and noted no negative findings were reported in the areas of Asset Custody and Control; and 9) We inquired of the Custodian who concurred that all control policies and procedures detailed in Section IV Control Objectives, Controls and Tests of Operating Effectiveness of the SAS 70 Report, have remained in operation and functioned adequately from January 1, 2003 through March 31, 2003. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Fund's compliance with specified requirements. In our opinion, management's assertion that the Dreyfus High Yield Strategies Fund complied with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of March 31, 2003, with respect to securities reflected in the investment accounts of the Fund is fairly stated, in all material respects. This report is intended solely for the information and use of management and the Board of Trustees of the Dreyfus High Yield Strategies Fund and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties. KPMG LLP June 25, 2003 June 25, 2003 Management Statement Regarding Compliance With Certain Provisions of the Investment Company Act of 1940 We, as members of management of the Dreyfus High Yield Strategies Fund (the "Fund"), 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 internal controls over compliance with those requirements. We have performed an evaluation of the Fund's compliance with the requirements of subsections (b) and (c) of Rule 17f-2 as of March 31, 2003 and from August 31, 2002 through March 31, 2003. Based on this evaluation, we assert that the Fund was in compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of March 31, 2003 and from August 31, 2002 through March 31, 2003 with respect to securities reflected in the investment accounts of the Fund. Dreyfus High Yield Strategies Fund James Windels Treasurer