NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniEnhanced Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 as a non-
diversified, closed-end management investment company. The Fund's financial statements are prepared in
accordance with generally accepted accounting principles which may require the use of management accruals and
estimates. The Fund determines and makes available for publication the net asset value of its Common Stock on
a weekly basis. The Fund's Common Stock is listed on the New York Stock Exchange under the symbol MEN.
The following is a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments--Municipal bonds are traded primarily in the over-the-counter markets and are
valued at the last available bid price in the over-the-counter market or on the basis of yield equivalents as
obtained by the Fund's pricing service from one or more dealers that make markets in the securities. Financial
futures contracts and options thereon, which are traded on exchanges, are valued at their closing prices as of the
close of such exchanges. Options written or purchased are valued at the last sale price in the case of exchange-
traded options. In the case of options traded in the over-the-counter market, valuation is the last asked price
(options written) or the last bid price (options purchased). Short-term investments with a remaining maturity of
sixty days or less are valued at amortized cost, which approximates market value. Securities and assets for which
market quotations are not readily available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Fund, including valuations furnished by a pricing service retained by the
Fund, which may utilize a matrix system for valuations. The procedures of the pricing service and its valuations
are reviewed by the officers of the Fund under the general supervision of the Board of Directors.