<PAGE> PAGE 1
000 B000000 09/30/96
000 C000000 0000042895
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 GRADISON CASH RESERVES TRUST
001 B000000 811-2618
001 C000000 5135795076
002 A000000 580 WALNUT STREET
002 B000000 CINCINNATI
002 C000000 OH
002 D010000 45202
002 D020000 3198
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
007 C012100 21
007 C012200 22
007 C012300 23
007 C012400 24
007 C012500 25
007 C012600 26
007 C012700 27
007 C012800 28
<PAGE> PAGE 2
007 C012900 29
007 C013000 30
007 C013100 31
007 C013200 32
007 C013300 33
007 C013400 34
007 C013500 35
007 C013600 36
007 C013700 37
007 C013800 38
007 C013900 39
007 C014000 40
007 C014100 41
007 C014200 42
007 C014300 43
007 C014400 44
007 C014500 45
007 C014600 46
007 C014700 47
007 C014800 48
007 C014900 49
007 C015000 50
007 C015100 51
007 C015200 52
007 C015300 53
007 C015400 54
007 C015500 55
007 C015600 56
007 C015700 57
007 C015800 58
007 C015900 59
007 C016000 60
007 C016100 61
007 C016200 62
007 C016300 63
007 C016400 64
007 C016500 65
007 C016600 66
007 C016700 67
007 C016800 68
007 C016900 69
007 C017000 70
007 C017100 71
007 C017200 72
007 C017300 73
007 C017400 74
007 C017500 75
007 C017600 76
007 C017700 77
007 C017800 78
007 C017900 79
<PAGE> PAGE 3
007 C018000 80
007 C018100 81
007 C018200 82
007 C018300 83
007 C018400 84
007 C018500 85
007 C018600 86
007 C018700 87
007 C018800 88
007 C018900 89
007 C019000 90
008 A000001 MCDONALD & COMPANY SECURITIES, INC
008 B000001 A
008 C000001 801-11037
008 D010001 CINCINNATI
008 D020001 OH
008 D030001 45202
008 D040001 3198
011 A000001 MCDONALD & COMPANY SECURITIES, INC
011 B000001 8-30177
011 C010001 CINCINNATI
011 C020001 OH
011 C030001 45202
011 C040001 3198
012 A000001 MCDONALD & COMPANY SECURITIES, INC
012 B000001 84-01399
012 C010001 CINCINNATI
012 C020001 OH
012 C030001 45202
012 C040001 3198
013 A000001 ARTHUR ANDERSEN LLP
013 B010001 CINCINNATI
013 B020001 OH
013 B030001 45202
014 A000001 MCDONALD & COMPANY SECURITIES, INC.
014 B000001 8-30177
015 A000001 STAR BANK N.A.
015 B000001 C
015 C010001 CINCINNATI
015 C020001 OH
015 C030001 45202
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 7
019 C000000 GRADMUTFND
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
<PAGE> PAGE 4
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 BANK OF AMERICA
022 B000001 94-1678665
022 C000001 4077147
022 D000001 4085326
022 A000002 MORGAN STANLEY
022 B000002 13-2838811
022 C000002 4213511
022 D000002 3933853
022 A000003 GOLDMAN SACHS
022 B000003 13-5108880
022 C000003 2862593
022 D000003 2807117
022 A000004 FIRST BOSTON
022 B000004 13-5659485
022 C000004 2458061
022 D000004 2306931
022 A000005 FIRST NATIONAL BANK OF CHICAGO
022 B000005 36-3595942
022 C000005 2157506
022 D000005 2398941
022 A000006 MERRILL LYNCH
022 B000006 13-3180817
022 C000006 953139
022 D000006 876791
022 A000007 FUJI SECURITIES
022 B000007 36-2880742
022 C000007 772679
022 D000007 728317
022 A000008 PRUDENTIAL
022 B000008 22-2347336
022 C000008 78761
022 D000008 67365
022 A000009 PAINE WEBBER
022 B000009 13-2638166
022 C000009 39965
022 D000009 40000
022 A000010 DEAN WITTER
022 B000010 91-1671384
022 C000010 24900
022 D000010 15000
023 C000000 17680173
023 D000000 17296572
024 000000 N
025 D000001 0
025 D000002 0
<PAGE> PAGE 5
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 433959
028 A020000 4839
028 A030000 0
028 A040000 493622
028 B010000 500225
028 B020000 5168
028 B030000 0
028 B040000 513412
028 C010000 453679
028 C020000 4784
028 C030000 0
028 C040000 456659
028 D010000 438955
028 D020000 5676
028 D030000 0
028 D040000 435477
028 E010000 384104
028 E020000 5189
028 E030000 0
028 E040000 393533
028 F010000 418699
028 F020000 5680
028 F030000 0
028 F040000 439254
028 G010000 2629621
028 G020000 31336
028 G030000 0
028 G040000 2731957
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
<PAGE> PAGE 6
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 100
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 1335
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 400000
048 A020000 0.500
048 B010000 600000
048 B020000 0.450
048 C010000 1000000
048 C020000 0.400
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 2000000
048 K020000 0.350
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
<PAGE> PAGE 7
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 Y
062 B000000 3.8
062 C000000 95.7
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 44
063 B000000 0.0
064 A000000 N
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
<PAGE> PAGE 8
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 0
071 B000000 0
071 C000000 0
071 D000000 0
072 A000000 12
072 B000000 73584
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 6078
072 G000000 0
072 H000000 0
072 I000000 2179
072 J000000 1
072 K000000 0
<PAGE> PAGE 9
072 L000000 116
072 M000000 44
072 N000000 100
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 42
072 S000000 9
072 T000000 1335
072 U000000 4
072 V000000 0
072 W000000 188
072 X000000 10096
072 Y000000 0
072 Z000000 63488
072AA000000 0
072BB000000 0
072CC010000 0
072CC020000 0
072DD010000 63488
072DD020000 0
072EE000000 0
073 A010000 0.0470
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 0
074 C000000 1326680
074 D000000 0
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 7062
074 M000000 691
074 N000000 1334433
074 O000000 0
074 P000000 758
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 612
074 S000000 0
074 T000000 1333063
074 U010000 1333063
074 U020000 0
<PAGE> PAGE 10
074 V010000 1.00
074 V020000 0.00
074 W000000 0.9998
074 X000000 90016
074 Y000000 0
075 A000000 1344583
075 B000000 0
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 AETNA CASUALTY AND SURETY
080 C000000 9300
081 A000000 Y
081 B000000 6
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE RICHARD M. WACHTERMAN
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000042895
<NAME> GRADISON CASH RESERVES TRUST
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 1326680275
<INVESTMENTS-AT-VALUE> 1326680275
<RECEIVABLES> 7062276
<ASSETS-OTHER> 691123
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1334433674
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1370491
<TOTAL-LIABILITIES> 1370491
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1333063183
<SHARES-COMMON-STOCK> 1333063183
<SHARES-COMMON-PRIOR> 1224129461
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1333063183
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 73584299
<OTHER-INCOME> 0
<EXPENSES-NET> 10096004
<NET-INVESTMENT-INCOME> 63488295
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 63488295
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 63488295
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5411348184
<NUMBER-OF-SHARES-REDEEMED> 5365902757
<SHARES-REINVESTED> 63488295
<NET-CHANGE-IN-ASSETS> 108933722
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6078331
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10096004
<AVERAGE-NET-ASSETS> 1344582687
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .047
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .047
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Sub-item 77B
To the Board of Trustees of the
Gradison-McDonald Cash Reserves Trust:
In planning and performing our audit of the financial statements of the
Gradison-McDonald Cash Reserves Trust for the year ended September 30,
1996, we considered its internal control structure, including procedures
for safeguarding securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, and not to provide assurance
on the internal control structure.
The management of the Gradison-McDonald Cash Reserves Trust is responsible
for establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal
control structure policies and procedures. Two of the objectives of an
internal control structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded against loss from
unauthorized use or disposition and that transactions are executed in
accordance with management's authorization and recorded properly to permit
preparation of financial statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any internal control structure, errors
or irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that
it may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be
material weaknesses under standards established by the American Institute
of Certified Public Accountants. A material weakness is a condition in
which the design or operation of the specific internal control structure
elements does not reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving the internal
control structure, including procedures for safeguarding securities, that
we consider to be material weaknesses as defined above as of September 30,
1996.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
/S/Arthur Andersen LLP
Cincinnati, Ohio,
October 25, 1996
