PRESIDENT'S LETTER
Dear Shareholder:
On January 31, 1994, Dreyfus Government Cash Management Class A
shares completed its latest fiscal year. Most of the period was
characterized by low short-term interest rates. However, in the closing
months signs of a coming upturn in interest rates made themselves felt.
In this environment, Class A shares provided a yield of 3.07% for the
12-month period ended January 31, 1994. After taking into account the
effect of compounding, your Class A shares provided an effective yield of
3.12%.*
Because of the continued low yields during most of the year, we
managed your portfolio to maintain average maturities close to the 90-
day maximum permitted by the Fund's Prospectus. In the last quarter of
the year, however, as the U.S. economy gained strength, we thought it
would be more prudent to shorten maturities somewhat, in the event that
interest rates should begin to reflect the upturn in economic activity.
STRENGTHENING OF THE U.S. ECONOMY
Late in 1993, the economic statistics from the Federal Government
made it clear that the recession - except for unemployment figures - was
virtually over. Such indicators as industrial purchasing orders,
manufacturing activity and gross domestic product all were pointing
upwards. This exerted some pressure on interest rates without, as yet,
rekindling a dangerous amount of inflation.
FED RAISES FEDERAL FUNDS RATE
In early February, the Federal Reserve Board made a "preemptive
strike" against inflation by raising the Federal Funds rate by one-quarter
percentage point.
Of course, no one can be sure how far the Fed intends to go with this
preventive action. However, history indicates that the Central Bank rarely
stops a new policy trend after just one action. Thus, it would be logical to
expect, or at least be prepared for, further tightening of interest rates.
More than likely, the Federal Reserve will not take actions that are
so drastic as to abort the current economic recovery. However, we would
expect the Federal Reserve to continue to "lean against the wind."
Accordingly, it is logical to be geared for higher short-term interest
rates.
We are keeping these considerations in mind in our day-to-day
management of your Fund's portfolio.
We thank you for the opportunity of serving your cash management
needs, and will continue to exert our best efforts to earn rewarding
returns on your cash assets.
Sincerely,
(Joseph S.DiMartino Signature)
Joseph S.DiMartino
President
February 17, 1994
New York, N.Y.
*Effective yield is based upon dividends declared daily and reinvested
monthly.
PRESIDENT'S LETTER
Dear Shareholder:
On January 31, 1994, Dreyfus Government Cash Management Class B
shares completed its first fiscal year.
For the period since inception on January 10, 1994 through January 31,
1994, Class B shares provided an annualized yield of 2.83%.
STRENGTHENING OF THE U.S. ECONOMY
Late in 1993, the economic statistics from the Federal Government
made it clear that the recession - except for unemployment figures - was
virtually over. Such indicators as industrial purchasing orders,
manufacturing activity and gross domestic product all were pointing
upwards. This exerted some pressure on interest rates without, as yet,
rekindling a dangerous amount of inflation.
FED RAISES FEDERAL FUNDS RATE
In early February, the Federal Reserve Board made a "preemptive
strike" against inflation by raising the Federal Funds rate by one-quarter
percentage point.
Of course, no one can be sure how far the Fed intends to go with this
preventive action. However, history indicates that the Central Bank rarely
stops a new policy trend after just one action. Thus, it would be logical to
expect, or at least be prepared for, further tightening of interest rates.
More than likely, the Federal Reserve will not take actions that are so
drastic as to abort the current economic recovery. However, we would
expect the Federal Reserve to continue to "lean against the wind."
Accordingly, it is logical to be geared for higher short-term interest
rates.
We are keeping these considerations in mind in our day-to-day
management of your Fund's portfolio.
We thank you for the opportunity of serving your cash management
needs, and will continue to exert our best efforts to earn rewarding
returns on your cash assets.
Sincerely,
Joseph S. DiMartino
President
February 17, 1994
New York, N.Y.
<TABLE>
<CAPTION>
DREYFUS GOVERNMENT CASH MANAGEMENT
STATEMENT OF INVESTMENTS JANUARY 31, 1994
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS_21.1% PURCHASE AMOUNT VALUE
---------- -------------- --------------
<S> <C> <C> <C>
2/10/94............................................. 3.25% $ 5,000,000 $ 4,996,062
4/7/94.............................................. 3.22 145,750,000 144,929,447
5/5/94.............................................. 3.24 75,000,000 74,390,850
5/12/94............................................. 3.32 50,000,000 49,546,528
6/2/94.............................................. 3.30 165,000,000 163,197,604
6/30/94............................................. 3.33 75,000,000 73,998,182
7/14/94............................................. 3.31 100,000,000 98,523,944
7/28/94............................................. 3.44 80,000,000 78,692,167
8/25/94............................................. 3.23 25,000,000 24,554,410
9/22/94............................................. 3.31 100,000,000 97,922,417
10/20/94............................................ 3.34 50,000,000 48,828,219
1/12/95............................................. 3.47 100,000,000 96,789,583
--------------
TOTAL U.S. TREASURY BILLS (cost $956,369,413)........... $ 956,369,413
==============
U.S. TREASURY NOTE_.6%
4.25%, 7/31/94
(cost $25,122,590).................................. 3.15% $ 25,000,000 $ 25,122,590
==============
U.S. TREASURY STRIP_1.0%
2/15/94
(cost $45,216,220).................................. 3.34% $ 45,274,000 $ 45,216,220
==============
U.S. GOVERNMENT AGENCIES_70.1%
BONDS-9.7%
Federal Farm Credit Banks, Consolidated Systemwide Bonds
3.21%, 3/1/94.................................. 3.21% $ 5,000,000 $ 5,000,000
Federal Farm Credit Banks, Consolidated Systemwide, Floating Rate Bonds
5/10/95......................................... 3.25(a) 115,000,000 115,000,000
11/17/95........................................ 3.45(a) 100,000,000 99,910,411
Federal Home Loan Banks, Consolidated Systemwide, Floating Rate Bonds
5/3/94.......................................... 3.07(a) 20,000,000 19,986,394
9/22/94......................................... 2.70(a) 50,000,000 50,000,000
11/1/94......................................... 2.72(a) 70,000,000 70,000,000
6/1/95.......................................... 2.92(a) 70,000,000 70,000,000
5/6/96.......................................... 3.32(a) 11,450,000 11,439,147
--------------
441,335,952
--------------
NOTES-60.4%
Federal Farm Credit Banks, Consolidated Systemwide,
Floating Rate Notes
4/29/94......................................... 3.13(a) 20,000,000 20,000,000
5/18/94......................................... 3.16(a) 45,000,000 45,000,000
10/19/94........................................ 3.45(a) 85,000,000 85,000,000
Federal Farm Credit Banks, Discount Notes
3/2/94.......................................... 3.17 9,700,000 9,675,933
3/10/94......................................... 3.17 5,000,000 4,984,172
3/29/94......................................... 3.33 18,155,000 18,064,064
4/1/94.......................................... 3.35 9,000,000 8,952,210
4/5/94.......................................... 3.40 10,000,000 9,941,900
4/6/94.......................................... 3.29 22,000,000 21,874,062
DREYFUS GOVERNMENT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1994
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. GOVERNMENT AGENCIES (CONTINUED) PURCHASE AMOUNT VALUE
---------- -------------- --------------
NOTES (CONTINUED)
Federal Farm Credit Banks, Discount Notes (continued)
4/13/94......................................... 3.20% $ 6,000,000 $ 5,963,317
5/6/94.......................................... 3.32 5,000,000 4,957,439
6/2/94.......................................... 3.55 10,000,000 9,884,714
7/22/94......................................... 3.32 8,000,000 7,876,880
10/3/94......................................... 3.42 10,000,000 9,775,655
Federal Home Loan Banks, Discount Notes
2/1/94.......................................... 3.08 300,000,000 300,000,000
3/25/94......................................... 3.31 50,000,000 49,768,167
5/10/94......................................... 3.44 53,000,000 52,516,669
7/21/94......................................... 3.20 35,000,000 34,479,375
7/25/94......................................... 3.21 30,000,000 29,541,800
7/26/94......................................... 3.19 22,000,000 21,664,194
9/30/94......................................... 3.39 48,000,000 46,946,027
11/23/94........................................ 3.61 9,200,000 8,936,893
Federal Home Loan Mortgage Corp.,
Consolidated Systemwide, Floating Rate Notes
6/22/94......................................... 3.33(a) 100,000,000 99,927,278
Federal Home Loan Mortgage Corp., Discount Notes
3/15/94......................................... 3.17 30,000,000 29,890,800
11/23/94........................................ 3.61 9,000,000 8,742,613
Federal National Mortgage Association,
Consolidated Systemwide, Floating Rate Notes
10/4/96......................................... 3.45(a) 100,000,000 100,000,000
Federal National Mortgage Association, Discount Notes
2/9/94.......................................... 3.21 40,000,000 39,972,000
3/10/94......................................... 3.32 20,280,000 20,212,259
3/11/94......................................... 3.26 50,000,000 49,831,639
3/22/94......................................... 3.21 23,150,000 23,050,744
3/24/94......................................... 3.21 12,000,000 11,946,450
3/31/94......................................... 3.21 9,500,000 9,451,788
4/7/94.......................................... 3.36 79,000,000 78,532,144
4/11/94......................................... 3.23 60,000,000 59,635,450
5/2/94.......................................... 3.24 34,000,000 33,730,002
5/4/94.......................................... 3.23 25,000,000 24,798,111
5/16/94......................................... 3.36 50,000,000 49,523,333
5/25/94......................................... 3.24 5,000,000 4,950,092
6/1/94.......................................... 3.25 99,880,000 98,817,943
6/16/94......................................... 3.35 64,000,000 63,210,400
6/17/94......................................... 3.33 50,000,000 49,382,333
6/27/94......................................... 3.28 11,595,000 11,444,523
6/30/94......................................... 3.30 47,555,000 46,923,192
7/18/94......................................... 3.40 14,695,000 14,467,999
8/25/94......................................... 3.30 50,000,000 49,086,042
8/31/94......................................... 3.40 30,000,000 29,414,475
9/6/94.......................................... 3.37 29,185,000 28,609,739
9/19/94......................................... 3.39 53,650,000 52,523,179
9/22/94......................................... 3.30 10,000,000 9,790,947
10/6/94......................................... 3.52 25,000,000 24,413,375
DREYFUS GOVERNMENT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1994
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. GOVERNMENT AGENCIES (CONTINUED) PURCHASE AMOUNT VALUE
---------- -------------- --------------
NOTES (CONTINUED)
Federal National Mortgage Association, Discount Notes (continued)
10/11/94........................................ 3.54% $ 48,025,000 $ 46,870,032
10/12/94........................................ 3.58 20,000,000 19,512,272
10/13/94........................................ 3.56 24,000,000 23,414,107
10/17/94........................................ 3.50 45,000,000 43,900,275
10/18/94........................................ 3.56 50,000,000 48,755,361
11/14/94........................................ 3.61 50,000,000 48,609,722
11/28/94........................................ 3.41 66,800,000 64,957,433
Student Loan Marketing Association, Floating Rate Notes
6/27/94......................................... 3.60(a) 80,000,000 80,000,000
10/11/94........................................ 3.40(a) 100,000,000 100,000,000
6/2/95.......................................... 3.27(a) 87,000,000 87,000,000
3/20/96......................................... 3.32(a) 70,000,000 70,000,000
9/10/96......................................... 3.38(a) 150,000,000 150,000,000
3/3/97.......................................... 3.29(a) 25,000,000 25,000,000
--------------
2,736,101,523
--------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $3,177,437,475).... $3,177,437,475
==============
REPURCHASE AGREEMENTS_7.1%
Bear, Stearns & Co.
dated 1/31/94, due 2/1/94 in the amount of $126,010,938
(fully collateralized by $125,050,000 U.S. Treasury
Notes, 4.25% due 8/31/94 to 1/31/95, value
$127,499,769)................................... 3.13% $ 126,000,000 $ 126,000,000
First National Bank of Chicago
dated 1/31/94, due 2/1/94 in the amount of $101,008,697
(fully collateralized by $51,410,000 U.S. Treasury
Bills due 5/5/94, and $51,335,000 U.S Treasury
Notes, 4.625% due 12/31/94, value $103,052,159). 3.10 101,000,000 101,000,000
Kidder, Peabody & Co. Inc.
dated 1/31/94, due 2/1/94 in the amount of $25,484,207
(fully collateralized by $9,630,000 U.S. Treasury
Bills due 2/10/94, and $16,160,000 U.S Treasury
Notes, 4.25% due 7/31/94, value $25,859,863).... 3.12 25,482,000 25,482,000
Yamaichi International (America) Inc.
dated 1/31/94, due 2/1/94 in the amount of $69,006,038
(fully collateralized by $68,345,000 U.S. Treasury
Notes, 4.625-5.75% due 3/31/94 to 12/31/94,
value $69,780,239).............................. 3.15 69,000,000 69,000,000
--------------
TOTAL REPURCHASE AGREEMENTS (cost $321,482,000)......... $ 321,482,000
==============
TOTAL INVESTMENTS (cost $4,525,627,698)........... 99.9% $4,525,627,698
===== ==============
CASH AND RECEIVABLES (NET)........................ .1% $ 5,415,574
===== ==============
NET ASSETS........................................ 100.0% $4,531,043,272
===== ==============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate - subject to periodic change.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GOVERNMENT CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value-Note 1(a,b)............................ $4,525,627,698
Cash....................................................................... 135,713
Interest receivable........................................................ 6,068,428
Other assets............................................................... 585
--------------
4,531,832,424
LIABILITIES:
Due to The Dreyfus Corporation............................................. $ 787,547
Accrued expenses........................................................... 1,605 789,152
-------------- --------------
NET ASSETS..................................................................... $4,531,043,272
==============
REPRESENTED BY:
Paid-in capital............................................................ $4,531,345,418
Accumulated net realized (loss) on investments............................. (302,146)
--------------
NET ASSETS at value............................................................ $4,531,043,272
==============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)................ 4,516,248,121
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)................ 15,097,297
==============
NET ASSET VALUE per share:
Class A Shares
($4,515,945,975 \ 4,516,248,121 shares)................................ $1.00
=====
Class B Shares
($15,097,297 \ 15,097,297 shares)...................................... $1.00
=====
STATEMENT OF OPERATIONS YEAR ENDED JANUARY 31, 1994
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 211,569,641
EXPENSES:
Management fee-Note 2(a)............................................... $12,911,325
Custodian fees......................................................... 666,882
Shareholder servicing costs-Note 2(c).................................. 649,081
Registration fees...................................................... 129,635
Professional fees...................................................... 60,633
Trustees' fees and expenses-Note 2(d).................................. 11,127
Prospectus and shareholders' reports................................... 6,434
Distribution fees (Class B Shares)-Note 2(b)........................... 1,605
Miscellaneous.......................................................... 157,579
--------------
14,594,301
Less-reduction in management fee due to undertaking-Note 2(a).......... 1,680,719
--------------
TOTAL EXPENSES..................................................... 12,913,582
--------------
INVESTMENT INCOME-NET.......................................................... 198,656,059
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................... (260,444)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 198,395,615
==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GOVERNMENT CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JANUARY 31,
--------------------------------
OPERATIONS: 1993 1994
-------------- --------------
<S> <C> <C>
Investment income-net...................................................... $ 341,513,629 $ 198,656,059
Net realized (loss) on investments......................................... (28,398) (260,444)
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 341,485,231 198,395,615
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares......................................................... (341,513,629) (198,637,877)
Class B shares......................................................... __ (18,182)
-------------- --------------
TOTAL DIVIDENDS.................................................... (341,513,629) (198,656,059)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares......................................................... 84,593,778,725 70,804,093,679
Class B shares......................................................... __ 41,634,102
Dividends reinvested:
Class A shares......................................................... 104,758,499 70,688,354
Class B shares......................................................... __ 41,392
Cost of shares redeemed:
Class A shares......................................................... (79,218,875,712) (76,588,413,781)
Class B shares......................................................... __ (26,578,196)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS.......................................... 5,479,661,512 (5,698,534,450)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 5,479,633,114 (5,698,794,894)
NET ASSETS:
Beginning of year.......................................................... 4,750,205,052 10,229,838,166
-------------- --------------
End of year................................................................ $10,229,838,166 $4,531,043,272
============== ==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GOVERNMENT 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 year indicated. This information has been derived from information provided in the
Fund's financial statements.
CLASS A SHARES CLASS B SHARES
----------------------------------------------------------- -----------
YEAR ENDED JANUARY 31, Year Ended
----------------------------------------------------------- JANUARY 31,
PER SHARE DATA: 1990 1991 1992 1993 1994 1994(1)
------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year....... $ .9995 $ .9996 $ .9998 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net.................... .0888 .0786 .0581 .0370 .0307 .0017
Net realized gain (loss) on investments.. .0001 .0002 .0002 -- (.0001) --
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS .0889 .0788 .0583 .0370 .0306 .0017
------- ------- ------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income-net..... (.0888) (.0786) (.0581) (.0370) (.0307) (.0017)
------- ------- ------- ------- ------- -------
Net asset value, end of year............. $ .9996 $ .9998 $1.0000 $1.0000 $ .9999 $1.0000
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 9.25% 8.15% 5.97% 3.76% 3.12% 2.82%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.. .20% .20% .20% .20% .20% .45%(2)
Ratio of net investment income to
average net assets..................... 8.84% 7.82% 5.67% 3.61% 3.08% 2.83%(2)
Decrease reflected in above
expense ratios due to undertaking
by the Manager......................... .05% .04% .04% .05% .03% --
Net assets, end of year (000's Omitted)..$1,590,159 $2,171,778 $4,750,205 $10,229,838 $4,515,946 $15,097
(1) From January 10, 1994 (commencement of initial offering) to January 31, 1994.
(2) Annualized.
See notes to financial statements.
</TABLE>
DREYFUS GOVERNMENT CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the distributor of the
Fund's shares, which are sold to the public without a sales load. The
Distributor is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager").
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.
On July 14, 1993, the Fund's Board of Trustees approved an amendment
to the Fund's Agreement and Declaration of Trust to provide for the
issuance of additional classes of shares of the Fund. The amendment was
approved by Fund shareholders on January 6, 1994. Effective January 10,
1994, existing Fund shares were classified as Class A shares and an
unlimited number of Class B shares were authorized. The Fund began
offering both Class A and Class B shares on January 10, 1994. 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.
(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. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Interest income is recognized on the accrual basis. Cost of investments
represents amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject
to repurchase agreements are deposited with the Fund's custodians and,
pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities
falls below the value of the repurchase price plus accrued interest, the
Fund will require the seller to deposit additional collateral by the next
business day. If the request for additional collateral is not met, or the
seller defaults on its repurchase obligation, the Fund maintains the right
to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income-net on each business day. 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, if any, 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, if such qualification is in the
best interests of its shareholders, by complying with the provisions
available to certain investment companies, as defined in applicable
sections of the Internal Revenue Code, and to make distributions of
taxable income sufficient to relieve it from all, or substantially all,
Federal income taxes.
The Fund has an unused capital loss carryover of approximately
$260,000 available for Federal income tax purposes to be applied against
future net securities profits, if any realized subsequent to January 31,
1994. The carryover does not include net realized securities losses from
November 1, 1993 through January 31, 1994 which are treated, for Federal
income tax purposes, as arising in fiscal 1995. If not applied, the
carryover expires in fiscal 2002.
At January 31, 1994, 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).
DREYFUS GOVERNMENT CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the
Manager should the Fund's aggregate expenses, exclusive of taxes, interest
on borrowings, brokerage commissions and extraordinary expenses, exceed
1 1/2% of the average value of the Fund's net assets for any full fiscal
year. However, the Manager had undertaken through January 9, 1994 to
reduce the management fee paid by, or bear such excess expenses of the
Fund, to the extent that the Fund's aggregate expenses (excluding certain
expenses as described above) exceed an annual rate of .20 of 1% of the
average daily value of the Fund's net assets. The reduction in management
fee, pursuant to the undertaking, amounted to $1,680,719 for the period
from February 1, 1993 through January 9, 1994.
Commencing January 10, 1994, the Manager, and not the Fund, will be
liable for those expenses of the Fund (excluding certain expenses as
described above) other than management fee, and with respect to the
Fund's Class B shares, Rule 12b-1 Service Plan expenses.
The Manager may modify the existing undertaking provided that the
Fund's shareholders are given 90 days prior notice.
(B) Under the Service Plan ("Class B Service Plan") adopted pursuant to
Rule 12b-1 under the Act, effective January 10, 1994, the Fund pays the
Distributor, at an annual rate of .25 of 1% of the value of the Fund's Class
B shares average daily net assets, for costs and expenses in connection
with advertising, marketing and distributing Class B shares and for
providing certain services to holders of Class B shares. The Distributor
will make payments to one or more Service Agents (financial institutions,
securities dealers, or other industry professionals) based on the value of
the Fund's Class B shares owned by clients of the Service Agent. From
January 10, 1994 through January 31, 1994, $1,605 was charged to the
Fund pursuant to the Class B Service Plan.
(C) Pursuant to the Fund's Shareholder Services Plan ("Class A
Shareholder Service Plan") the Fund reimburses the Distributor an amount
not to exceed an annual rate of .25 of 1% of the value of the Fund's Class A
shares average daily net assets for servicing 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 from February 1,
1993 through January 9, 1994 the Fund was charged an aggregate of
$539,273 pursuant to the Shareholder Services Plan.
(D) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives an annual fee of $3,000 and an
attendance fee of $500 per meeting.
(E) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger providing for the merger of the Manager with a subsidiary
of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including the receipt of certain regulatory
approvals and the approvals of the stockholders of the Manager and of
Mellon. The merger is expected to occur in mid-1994, but could occur
later.
Because the merger will constitute an "assignment" of the Fund's
Management Agreement with the Manager under the Investment Company
Act of 1940, and thus a termination of such Agreement, the Manager will
seek prior approval from the Fund's Board and shareholders.
DREYFUS GOVERNMENT CASH MANAGEMENT
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS GOVERNMENT CASH MANAGEMENT
We have audited the accompanying statement of assets and liabilities
of Dreyfus Government Cash Management, including the statement of
investments, as of January 31, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of January 31, 1994 by
correspondence with the custodians and others. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Government Cash Management at January 31, 1994, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
(Ernst & Young Signature Logo)
New York, New York
March 4, 1994
DREYFUS GOVERNMENT
CASH MANAGEMENT
144 GLENN CURTISS BOULEVARD
UNIONDALE, NY 11556
MANAGER
THE DREYFUS CORPORATION
200 PARK AVENUE
NEW YORK, NY 10166
DISTRIBUTOR
DREYFUS SERVICE CORPORATION
200 PARK AVENUE
NEW YORK, NY 10166
CUSTODIAN
THE BANK OF NEW YORK
110 WASHINGTON STREET
NEW YORK, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
THE SHAREHOLDER SERVICES GROUP, INC.
P.O. BOX 9671
PROVIDENCE, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 289AR941
DREYFUS
GOVERNMENT
CASH
MANAGEMENT
ANNUAL REPORT
January 31, 1994
