DREYFUS TAX EXEMPT CASH MANAGEMENT
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Tax Exempt Cash
Management. For its semi-annual reporting period ended July 31, 1996, your
Fund's Class A and Class B shares produced annualized yields of 3.19% per
share and 2.94% per share, respectively. Income dividends of approximately
$.016 per share were paid during the period for Class A shares and $.015 for
Class B shares. Reinvesting these dividends and calculating the effect of
compounding resulted in annualized effective yields of 3.24% and 2.98% for
Class A shares and Class B shares, respectively.* These dividends were exempt
from Federal personal income taxes, although some income may be subject to
the Federal Alternative Minimum Tax (AMT) for certain shareholders.**
THE ECONOMY
The economic expansion which has now lasted more than six years continued
at a healthy clip in recent months, with consumer spending, housing activity,
and job growth all showing solid gains. In the second quarter of 1996, the
U.S. economy grew at a 4.2% annual pace, its best performance in two years.
American consumers continued to buy new autos and houses at a robust rate,
with housing sales and starts growing 15.2% in the spring quarter, according
to the government's Gross Domestic Product (GDP) report. At the same time,
the unemployment rate dropped to 5.3% in June, its lowest level in years.
Vigorous economic growth inevitably brings about investor concerns
regarding inflation: in other words, will the rising economy cause inflation
to rise as well? For much of July, the answer remained clouded. Federal
Reserve Board Chairman Alan Greenspan did not respond to inflationary fears
with a clear indication as to the direction of Fed policy in his July 18th
testimony before Congress. While hinting that the Fed would tighten
short-term interest rates in August if inflationary pressures warranted such
action, Mr. Greenspan also said that he expected the economy to slow of its
own accord later this year. By the end of July, a clearer picture emerged.
According to government data released at month's end, inflation in the second
quarter of 1996 climbed just 3.8%, a very modest rise. Both short and
long-term rates responded with enthusiasm.
MARKET ENVIRONMENT/PORTFOLIO
If one were to trace the trend in short-term municipal rates over this
most recent semi-annual period, the direction would mirror closely the
changes in supply and demand conditions. The six-month cycle would reflect:
low short-term yields in February due to strong money market fund cash flows
after the new year, price weakness and higher rates in April as investors
tapped their money market funds to pay income taxes, market strength in late
June to early July as $9 billion in note maturities left the market, and
price weakness and buying opportunities in late July due to inflationary
concerns and the added supply of summer financings. These technical
influences continue to be the overriding factor affecting municipal money
rates.
These conditions, coupled with action taken by the Federal Reserve Board,
provide the framework for our investment strategy - both on a day-to-day
basis and looking ahead over a one-year horizon. During the first few months
of 1996, as a result of uncertainty surrounding potential tax reform,
variable rate demand notes (which currently represent a significant portion
of your Fund's investment portfolio) benefited from unusually high yields.
While the concerns were only temporary, they translated, for a
time, into a more attractive after-tax rate of return than was available to
the tax-exempt investor on taxable instruments with similar maturities.
During this period, the purchase of attractively yielding commercial paper in
the 90-day range also allowed us to capture returns similar to those on
one-year issues without a significant extension of average maturity -
enabling us to wait out a lower yield environment in anticipation of higher
rates. Of course, these conditions can change over time.
The opportunity to commit to the longer note issues has appeared in
recent weeks and should continue to be available during the remaining summer
months as issuers return to the market with midyear financings. We have, to
some extent, participated in these offerings which resulted in an extension
of your Fund's average maturity to the 65-day range. We will look to take
advantage of any additional buying opportunities as we monitor potential Fed
activity and any other significant changes in the municipal money market. All
new investments will continue to meet the high credit quality standards which
we require and to provide a significant level of liquidity, commensurate with
the needs of your Fund.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 15, 1996
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
**Some income may be subject to state and local taxes.
<TABLE>
<CAPTION>
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS JULY 31, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
________ ________
<S> <C> <C>
ARKANSAS-.8%
University of Arkansas, University Revenues, VRDN (UAMS Campus)
3.50% (LOC; Credit Suisse) (a,b)........................................ $ 13,000,000 $ 13,000,000
CALIFORNIA-9.8%
California Public Capital Improvements Financing Authority, Revenue
(Pooled Project) 3.65%, Series C, 9/16/96 (LOC; National Westminster Bank) (b) 10,000,000 10,000,000
California School Cash Reserve Program Authority, Revenue
4.75%, Series A, 7/2/97 (Insured; MBIA)................................. 47,000,000 47,355,487
Irvine Ranch Water District, Revenue, VRDN
3.55%, Series B (LOC; Landesbank Hessen) (a,b).......................... 8,700,000 8,700,000
Los Angeles County, TRAN 4.50%, Series A, 6/30/97 (LOC: Bank of America,
Credit Suisse, Morgan Guaranty Trust Co., Union Bank of Switzerland and
Westdeutsche Landesbank) (b)............................................ 27,000,000 27,127,328
Los Angeles County Transportation Commission, Sales Tax Revenue, Refunding, VRDN
3.40%, Series A (BPA; Bayerishe Landesbank and Insured; FGIC) (a)....... 14,200,000 14,200,000
Los Angeles Metropolitan Transportation Authority, Sales Tax Revenue, Refunding, VRDN
(Prop C-Second Series)
3.25%, Series A (BPA; Credit Locale de France and Insured; MBIA) (a).... 10,000,000 10,000,000
Sacramento County, MFHR, VRDN 3.55%, Series B (LOC; Dai-Ichi Kangyo Bank) (a,b) 6,900,000 6,900,000
Sacramento County Housing Authority, Refunding, VRDN (Grouse Run Apartments)
3.30% (LOC; Bank of America) (a,b)...................................... 6,500,000 6,500,000
COLORADO-2.4%
City and County of Denver, MFHR, Refunding, VRDN (Parliament Apartments Project)
3.70% (Corp. Guaranty; Connecticut General Life Insurance Co.) (a)...... 22,200,000 22,200,000
Douglas County, MFHR, VRDN (Autumn Chase Project) 3.50% (LOC; Citibank) (a,b) 9,500,000 9,500,000
CONNECTICUT-3.1%
State of Connecticut:
Special Assessment Unemployment Compensation Advance Fund Revenue
(Connecticut Unemployment) 3.90%, Series C, 7/1/97 (Insured; FGIC).... 23,000,000 23,000,000
Special Tax Obligation Revenue, VRDN (Transportation Infrastructure-1)
3.55% (LOC; Commerzbank) (a,b)........................................ 12,800,000 12,800,000
Connecticut Development Authority, PCR, Refunding, VRDN
(Connecticut Light and Power Co. Project)
3.50%, Series A (LOC; Deutsche Bank) (a,b).............................. 5,500,000 5,500,000
DELAWARE-4.1%
Delaware Economic Development Authority, Revenue, VRDN (Hospital Billing Collection):
3.60%, Series A (BPA; Morgan Stanley Group and Insured; MBIA) (a)....... 9,700,000 9,700,000
3.60%, Series B (BPA; Morgan Stanley Group and Insured; MBIA) (a)....... 33,200,000 33,200,000
3.60%, Series C (BPA; Morgan Stanley Group and Insured; MBIA) (a)....... 11,700,000 11,700,000
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
DISTRICT OF COLUMBIA-9.6%
District of Columbia:
Revenue (Supplemental Student Loan)
4.33%, 7/1/97 (LOC; Bank of Tokyo-Mitsubishi) (b)..................... $ 9,000,000 $ 9,022,319
VRDN:
(General Fund Recovery):
3.80%, Series B-1 (LOC; Union Bank of Switzerland) (a,b).......... 28,000,000 28,000,000
3.80%, Series B-2 (LOC; Westdeutsche Landesbank) (a,b)............ 22,900,000 22,900,000
3.80%, Series B-3 (LOC; Landesbank Hessen) (a,b).................. 31,600,000 31,600,000
Refunding:
3.70%, Series A-3 (BPA; Toronto-Dominion Bank) (a)................ 5,600,000 5,600,000
3.70%, Series A-5 (LOC; Bank of Nova Scotia) (a,b)................ 8,300,000 8,300,000
3.70%, Series A-6 (LOC; National Westminster Bank) (a,b).......... 11,800,000 11,800,000
Revenue (American Association for the Advancement of Science Issue Project)
3.65% (LOC; Nations Bank) (a,b)................................... 11,000,000 11,000,000
FLORIDA-2.3%
Dade County, Water and Sewer Systems Revenue, VRDN
3.65% (Insured; FGIC and BPA; Commerzbank) (a).......................... 18,600,000 18,600,000
Orange County Housing Finance Authority, MFHR, VRDN (Heather Glenn Apartments)
3.35%, Series B (LOC; FNMA) (a,b)....................................... 12,700,000 12,700,000
GEORGIA-.8%
Putnam County Development Authority, PCR, VRDN (Georgia Power Co.)
3.55%, 1st Series (Corp. Guaranty; Georgia Power Co.) (a)............... 10,700,000 10,700,000
ILLINOIS-3.7%
Glendale Heights, Multi-Family Revenue, VRDN (Glendale Lake Project)
3.55% (LOC; Citibank) (a,b)............................................. 15,445,000 15,445,000
Illinois Health Facilities Authority, Revenue, VRDN:
(Northwestern Memorial Hospital)
3.55% (LOC; Northwestern Memorial Hospital) (a,b)..................... 10,000,000 10,000,000
(Resurrection Health Care Systems) 3.60% (LOC: Comerica Bank, First Chicago Corp.,
LaSalle National Bank and National Bank of Detroit) (a,b)............. 17,000,000 17,000,000
(SSM Health Care Project) 3.65%, Series A (LOC; Rabobank) (a,b)......... 6,200,000 6,200,000
INDIANA-5.6%
Indiana Bond Bank:
Advanced Funding Notes 4.25%, Series A-2, 1/9/97........................ 20,000,000 20,063,931
Reassessment Assistance Program Notes:
4.125%, 1/30/97....................................................... 20,000,000 20,036,103
4.50%, Series B, 1/30/97.............................................. 20,000,000 20,058,106
Petersburg, PCR, Refunding, VRDN (Indiana Power and Light)
3.60%, Series B (Insured; AMBAC and Liquidity; Indianapolis Power and Light) (a) 15,000,000 15,000,000
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
LOUISIANA-2.8%
Jefferson Parish Hospital Service District No.2, HR, VRDN 3.50% (Insured; FGIC) (a) $ 9,000,000 $ 9,000,000
Plaquemines Port Harbor and Terminal District, Port Facilities Revenue
(International Marine Terminal Project)
3.25%, Series A, 3/17/97 (LOC; Morgan Guaranty Trust Co.) (b)........... 12,000,000 12,000,000
West Baton Rouge Parish Industrial District No. 3, Revenue, Refunding, VRDN
(Dow Chemical Co. Project) 3.65%, Series B (Corp. Guaranty; Dow Chemical Co.) (a) 15,800,000 15,800,000
MAINE-2.2%
Orrington, RRR, VRDN (Penobscott Energy Recovery Project)
4.275%, Series A (LOC: Bank of Nova Scotia, Bankers Trust, Canadian Imperial Bank
of Commerce, Long-Term Credit Bank of Japan and Toronto Dominion Bank) (a,b) 28,900,000 28,900,000
MASSACHUSETTS-1.3%
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN
(Capital Assets Program) 3.45%, Series D (LOC; Credit Suisse and Insured; MBIA) (a,b) 10,400,000 10,400,000
Massachusetts Industrial Finance Agency, Revenue, Refunding, VRDN
(Showa Womens Institute) 3.50% (LOC; Bank of America) (a,b)............. 6,290,000 6,290,000
MICHIGAN-3.7%
Michigan Hospital Finance Authority, VRDN (Hospital Equipment Loan Program)
3.60% (LOC; Comerica Bank) (a,b)........................................ 4,900,000 4,900,000
Michigan Housing Development Authority, LOR, VRDN (Laurel Valley)
3.55% (LOC; National Westminster Bank) (a,b)............................ 5,900,000 5,900,000
Michigan Stategic Fund, LOR, Refunding, VRDN (Detroit Edison)
3.50% (LOC; Barclays Bank) (a,b)........................................ 12,800,000 12,800,000
Michigan Underground Storage Tank Financial Assurance Authority, Revenue, CP
3.45%, Series I, 8/15/96 (LOC; Canadian Imperial Bank of Commerce) (b).. 25,700,000 25,700,000
MINNESOTA-.9%
University of Minnesota, University Revenue (Full Faith and Credit)
3.25%, Series F, 8/1/96................................................. 11,500,000 11,500,000
MISSOURI-.5%
Missouri Health and Educational Facilities Authority, Health Facilities Revenue, VRDN
(SSM Health Care Project) 3.65%, Series A (LOC; Rabobank Nederland) (a,b) 6,300,000 6,300,000
NEBRASKA-2.3%
Nebraska Higher Education Loan Program Inc., Revenue, VRDN (Student Loan Program)
3.55%, Series C (BPA; Student Loan Marketing Association and Insured; MBIA) (a) 27,340,000 27,340,000
Nebraska Investment Finance Authority, HR, VRDN (Depreciation Assets)
3.50%, Series A (Insured; FGIC and Liquidity; First Bank National Association) (a) 2,920,000 2,920,000
NEW JERSEY-4.8%
Essex County Improvement Authority, Project Revenue, VRDN (County Asset Sale Project)
3.30% (BPA; Morgan Guaranty Trust Co. and Insured; AMBAC)............... 10,000,000 10,000,000
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
__________ __________
NEW JERSEY (CONTINUED)
New Jersey Turnpike Authority, Revenue, Refunding, VRDN
3.35%, Series D (Insured; FGIC and BPA; Societe Generale) (a)........... $ 53,900,000 $ 53,900,000
NEW YORK-22.1%
City of New York, VRDN
3.50%, Series B-Subseries B-6 (LOC; Westdeutsche Landesbank and
Insured; MBIA) (a,b).................................................... 7,300,000 7,300,000
New York City Industrial Development Agency, Civil Facility Revenue, VRDN
(Children's Oncology Society-Ronald McDonald House)
3.40% (LOC; Barclays Bank) (a,b)........................................ 4,700,000 4,700,000
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue, CP
3.50%,10/1/96 (LOC; Canadian Imperial Bank of Commerce) (b)............. 60,000,000 60,000,000
New York City Trust, Cultural Resources Revenue, VRDN
(American Musuem of Natural History)
3.30%, Series B (Insured; MBIA and SBPA; Credit Suisse) (a)............. 6,900,000 6,900,000
New York State Dormitory Authority, Revenues:
CP (Memorial Sloan Kettering)
2.90%, Series A, 8/7/96 (LOC; Chase Manhattan Bank) (b)............... 18,700,000 18,700,000
VRDN (Metropolitan Museum of Art)
3.25%, Series A (Guaranteed by; Metropitan Museum of Art) (a)......... 1,800,000 1,800,000
New York State Energy Research and Development Authority, PCR, VRDN
(Orange/Rockland Utility)
3.30%, Series A (BPA; Societe Generale and Insured; AMBAC) (a).......... 18,500,000 18,500,000
New York State Local Government Assistance Corporation, VRDN:
3.25%, Series G (LOC; National Westminster Bank) (a,b).................. 26,900,000 26,900,000
3.30%, Series A (LOC: Credit Suisse, Swiss Bank Corp. and Union Bank of
Switzerland) (a,b).................................................... 20,200,000 20,200,000
3.30%, Series B (LOC: Credit Suisse and Swiss Bank Corp.) (a,b)......... 18,100,000 18,100,000
3.30%, Series C (LOC; Landesbank Hessen) (a,b).......................... 26,200,000 26,200,000
New York State Medical Care Facilities Finance Agency, Revenue, VRDN
(Pooled Loan Equipment Program)
3.40% (LOC; Chase Manhattan Bank) (a,b)................................. 45,700,000 45,700,000
Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN
(Versatile Structure Obligation)
3.45%, Series 3 (SBPA; Morgan Guaranty Trust Co.) (a)................... 6,000,000 6,000,000
City of Rochester, BAN 3.75%, Series I, 3/11/97............................. 10,000,000 10,029,397
Suffolk County, TAN 4%, Series 1, 8/15/96 (LOC: Canadian Imperial Bank of Commerce,
National Westminster Bank and West Deutsche Landesbank) (b)............. 23,000,000 23,006,053
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
OHIO-2%
Cincinnati and Hamilton County Port Authority, IDR, VRDN (Multi-Color Corp. Project)
3.60% (LOC; PNC Bank of Ohio) (a,b)..................................... $ 2,300,000 $ 2,300,000
Green County, Certificates of Indebtness, BAN 3.88%, 6/4/97................. 14,000,000 14,018,134
Ohio Air Quality Development Authority, Revenue, Refunding, VRDN
(Cincinnati Gas and Electric)
3.50%, Series B (LOC; Canadian Imperial Bank of Commerce) (a,b)......... 10,200,000 10,200,000
PENNSYLVANIA-3.2%
Allegheney County Port Authority, GAN
3.90%, Series A, 6/30/97 (LOC; PNC Bank) (b)............................ 17,755,000 17,755,000
Emmaus General Authority, Revenue, VRDN:
3.65%, Subseries E-5 (LOC; Midland Bank) (a,b).......................... 8,000,000 8,000,000
3.65%, Series E-9 (LOC; Midland Bank) (a,b)............................. 10,000,000 10,000,000
3.65%, Subseries G-5 (LOC; Midland Bank) (a,b).......................... 4,000,000 4,000,000
Washington County Authority, Lease Revenue, VRDN
(Higher Education Pooled Equipment Lease Project)
3.70%, Series 1985A (LOC; Sanwa Bank) (a,b)............................. 3,400,000 3,400,000
SOUTH CAROLINA-.3%
Sumter County, Industrial Revenue, VRDN (Bendix Corp. Project)
4.025% (LOC; Sumitomo Bank) (a,b)....................................... 4,000,000 4,000,000
TEXAS-5.1%
Dallas County, Permanent Improvement Revenue
3.75%, Series C, 6/17/97 (SBPA; Union Bank of Switzerland).............. 8,375,000 8,375,000
Greater East Texas Higher Education Authority Inc.,
Student Loan Revenue, Refunding, VRDN
3.50%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 21,000,000 21,000,000
Harris County Health Facilities Development Corporation, HR, VRDN
(Texas Children's Hospital) 3.60%, Series B (LOC; Bank of America) (a,b) 8,300,000 8,300,000
Texas Department of Housing and Community Affairs, MFHR, VRDN (Higher Point III)
3.60%, Series A (LOC; Trust Co. Bank of Georgia) (a,b).................. 12,490,000 12,490,000
Texas Health Facilities Development Corporation, HR, VRDN
(North Texas Pooled Health) 3.65%, Series 85A (LOC; Citibank) (a,b)..... 18,200,000 18,200,000
UTAH-1.9%
Intermountain Power Agency, Power Supply Revenue:
3.35%, Series E, 9/16/96 (LOC; Swiss Bank Corp.) (b).................... 10,000,000 10,000,000
3.93%, Series 85E, 6/16/97 (LOC; Morgan Guaranty Trust Co.) (b)......... 15,000,000 15,000,000
VIRGINIA-1.5%
Henrico County Industrial Deveolpment Authority, Health Facility Revenue, VRDN
(Hermitage Project) 3.60% (LOC; Nations Bank of Virginia) (a,b)......... 20,000,000 20,000,000
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
WASHINGTON-2.4%
Snohomish County Public Utilities District No.1, Electric Revenue, VRDN
(Generation Systems)
3.65% (Insured; MBIA and SBPA; Industrial Bank of Japan) (a)............ $ 10,760,000 $ 10,760,000
Washington Public Power Supply System, Revenue, Refunding, VRDN
(Nuclear Project No.3)
3.60% (LOC; National Westminster Bank) (a,b)............................ 21,700,000 21,700,000
WISCONSIN-.8%
State of Wisconsin, Operating Notes 4.50%, 6/16/97.......................... 10,000,000 10,048,788
_____________
TOTAL INVESTMENTS (cost $1,332,640,646)..................................... $1,332,640,646
===============
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<CAPTION>
DREYFUS TAX EXEMPT CASH MANAGEMENT
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOR Limited Obligation Revenue
BAN Bond Anticipation Notes MBIA Municipal Bond Investors Assurance
BPA Bond Purchase Agreement Insurance Corporation
CP Commercial Paper MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RRR Resources Recovery Revenue
GAN Grant Anticipation Notes SBPA Standby Bond Purchase Agreement
HR Hospital Revenue TAN Tax Anticipation Notes
IDR Industrial Development Revenue TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<S> <C> <C> <C>
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ ______________ ________________ _____________________
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 94.8%
F2 VMIG2/MIG2, P2 SP2, A2 2.2
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) .9
Not Rated (f) Not Rated (f) Not Rated (f) 2.1
______
100.0%
=========
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NOTES TO STATEMENT OF INVESTMENTS:
(a) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(b) Secured by letters of credit. At July 31, 1996, 62.3% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks, brokerage firms, corporations and government agencies.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) P1 and A1 are the highest ratings assigned tax exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See independent accountants' review report and notes to financial statements.
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<CAPTION>
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $1,332,640,646
Interest receivable..................................................... 5,551,780
Prepaid expenses........................................................ 50,462
_______________
1,338,242,888
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $230,067
Due to Distributor...................................................... 16,330
Due to Custodian........................................................ 312,139 558,536
___________ ______________
NET ASSETS ................................................................ $1,337,684,352
=================
REPRESENTED BY:
Paid-in capital......................................................... $1,338,099,460
Accumulated net realized (loss) on investments.......................... (415,108)
_______________
NET ASSETS at value......................................................... $1,337,684,352
=================
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 1,229,899,517
=================
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 108,199,943
=================
NET ASSET VALUE per share:
Class A Shares
($1,229,498,856 / 1,229,899,517 shares)............................... $1.00
========
Class B Shares
($108,185,496 / 108,199,943 shares)................................... $1.00
========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $23,142,310
EXPENSES:
Management fee-Note 2(a).............................................. $1,363,037
Distribution fees (Class B Shares)-Note 2(b).......................... 77,525
____________
TOTAL EXPENSES.................................................... 1,440,562
____________
INVESTMENT INCOME-NET....................................................... 21,701,748
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (90,867)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $21,610,881
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1996
1996 (UNAUDITED)
_________________ ______________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 53,781,575 $ 21,701,748
Net realized (loss) on investments................................ (146,895) (90,867)
_________________ ______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 53,634,680 21,610,881
_________________ ______________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A Shares.................................................. (51,734,254) (20,796,426)
Class B Shares.................................................. (2,047,321) (905,322)
_________________ ______________
TOTAL DIVIDENDS............................................. (53,781,575) (21,701,748)
_________________ ______________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A Shares.................................................. 9,164,962,455 4,042,336,948
Class B Shares.................................................. 246,403,713 182,296,444
Dividends reinvested:
Class A Shares.................................................. 9,367,571 2,983,981
Class B Shares.................................................. 1,222,265 295,045
Cost of shares redeemed:
Class A Shares.................................................. (9,106,993,170) (4,182,232,934)
Class B Shares.................................................. (215,233,621) (154,214,197)
_________________ ______________
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS.......................... 99,729,213 (108,534,713)
_________________ ______________
TOTAL INCREASE (DECREASE) IN NET ASSETS................... 99,582,318 (108,625,580)
NET ASSETS:
Beginning of period............................................... 1,346,727,614 1,446,309,932
_________________ ______________
End of period..................................................... $ 1,446,309,932 $ 1,337,684,352
================= ================
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TAX EXEMPT CASH MANAGEMENT
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES
________________________________________________________
SIX
YEAR ENDED JANUARY 31, MONTHS ENDED
________________________________________________________________ JULY 31, 1996
PER SHARE DATA: 1992 1993 1994 1995 1996 (UNAUDITED)
______ ______ ______ ______ ______ __________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ __________
INVESTMENT OPERATIONS;
Investment income-net................. .042 .028 .023 .028 .037 .016
______ ______ ______ ______ ______ ______
DISTRIBUTIONS;
Dividends from investment income-net.. (.042) (.028) (.023) (.028) (.037) (.016)
______ ______ ______ ______ ______ ______
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ========= ======== ======= ========
TOTAL INVESTMENT RETURN................... 4.25% 2.83% 2.29% 2.83% 3.72% 3.21%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .20% .20% .20% .20% .20% .20%*
Ratio of net investment income to
average net assets.................. 4.16% 2.77% 2.26% 2.73% 3.64% 3.19%*
Decrease reflected in above expense ratios
due to undertaking by the Manager... .05% .04% .04% - - -
Net Assets, end of period (000's omitted) $1,668,671 $1,838,786 $1,739,787 $1,299,301 $1,366,497 $1,229,499
*Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TAX EXEMPT CASH MANAGEMENT
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
CLASS B SHARES
___________________________________________
SIX
YEAR ENDED JANUARY 31, MONTHS ENDED
___________________________________________ JULY 31, 1996
PER SHARE DATA: 1994(1) 1995 1996 (UNAUDITED)
______ ______ ______ ____________
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ _______
INVESTMENT OPERATIONS;
Investment income-net................................. .001 .025 .034 .015
______ ______ ______ _______
DISTRIBUTIONS;
Dividends from investment income-net.................. (.001) (.025) (.034) (.015)
______ ______ ______ _______
Net asset value, end of period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ====== ======== ========
TOTAL INVESTMENT RETURN............................. 1.83%(2) 2.57% 3.46% 2.97%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... .45%(2) .45% .45% .45%(2)
Ratio of net investment income to average net assets... 1.87%(2) 2.74% 3.39% 2.91%(2)
Net Assets, end of period (000's omitted)............... $1 $47,427 $79,813 $108,185
(1) From January 10, 1994 (commencement of initial offering) to January 31, 1994.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS TAX EXEMPT CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Tax Exempt Cash Management (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company. The Fund's investment objective is to provide investors
with as high a level of current income exempt from Federal income tax as is
consistent with the preservation of capital and the maintenance of liquidity.
The Dreyfus Corporation ("Manager") serves as the Fund's investment adviser.
The Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold without a sales charge. The
Fund offers both Class A and Class B shares. Class B shares are subject to a
Service Plan adopted pursuant to Rule 12b-1 under the Act. Other differences
between the two Classes include the services offered to and the expenses
borne by each Class and certain voting rights.
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 of $1.00
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and original issue discounts on investments, is
earned from settlement date and recognized on the accrual basis. Realized
gain and loss from securities transactions are recorded on the identified
cost basis. Cost of investments represents amortized cost.
(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 gain ,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. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(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 Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $289,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to January 31, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through January 31, 1996 which are treated, for Federal income tax
purposes, as arising in fiscal 1997. If not applied, $177,000 of the
carryover expires in fiscal 2003 and $112,000 of the carryover expires in
fiscal 2004.
DREYFUS TAX EXEMPT CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At July 31, 1996, 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 ("Agreement") with the Manager,
the management fee is computed at the annual rate of .20 of 1% of the value
of the Fund's average daily net assets and is payable monthly.
Unless the Manager gives the Fund's investors 90 days notice to the
contrary, the Manager and not the Fund, will be liable for Fund expenses
(exclusive of taxes, brokerage, interest on borrowings and, with the prior
written consent of the necessary state securities commissions, extraordinary
expenses) other than the following expenses, which will be borne by the Fund:
the management fee, and with respect to the Fund's Class B shares, Rule 12b-1
Service Plan expenses.
The Manager compensates Dreyfus Transfer, Inc., a wholly-owned
subsidiary, under a transfer agency agreement, for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $15,412 during the six months ended July 31, 1996.
(B) Under the Class B Service Plan ("the Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund (a) reimburses the Distributor for distributing
the Fund's Class B shares and (b) pays the Manager and Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and their affiliates
(collectively, "Dreyfus") for advertising and marketing relating to the
Fund's Class B shares and for providing certain services relating to Class B
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 ("Servicing"), at an aggregate annual
rate of .25 of 1% of the value of the average daily net assets of Class B.
Both the Distributor and Dreyfus may pay one or more Service Agents (a
securities dealer, financial institution or other industry professional) a
fee in respect of the Fund's Class B shares owned by the shareholders with
whom the Service Agent has a Servicing relationship or for whom the Service
Agent is the dealer or holder of record. Both the Distributor and Dreyfus
determine the amounts, if any, to be paid to the Service Agents under the
Plan and the basis on which such payments are made. The fees payable under
the Plan are payable without regard to actual expenses incurred. During the
six months ended July 31, 1996, $77,525 was charged to the Fund pursuant to
the Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives an annual fee of $3,000 and an attendance fee of $500 per meeting.
DREYFUS TAX EXEMPT CASH MANAGEMENT
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS TAX EXEMPT CASH MANAGEMENT
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Tax Exempt Cash Management, including the statement of investments,
as of July 31, 1996, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended July 31,
1996. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
January 31, 1996 and financial highlights for each of the five years in the
period ended January 31, 1996 and in our report dated March 5, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
September 9, 1996
DREYFUS TAX EXEMPT
CASH MANAGEMENT
200 PARK AVENUE
NEW YORK, NY 10166
MANAGER
THE DREYFUS CORPORATION
200 PARK AVENUE
NEW YORK, NY 10166
CUSTODIAN
THE BANK OF NEW YORK
90 WASHINGTON STREET
NEW YORK, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
DREYFUS TRANSFER, INC.
P.O. BOX 9671
PROVIDENCE, RI 02940
Printed in U.S.A. 264/675SA967
DREYFUS
TAX EXEMPT
CASH
MANAGEMENT
SEMI-ANNUAL REPORT
JULY 31, 1996
