CMA
CMA NEW YORK
MUNICIPAL MONEY FUND
Annual Report
March 31, 1997
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Steven T. Lewis--Vice President
Darrin J. SanFillippo--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
<PAGE>
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government. Statements and
other information herein are as dated and are subject to change.
CMA New York
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the year ended March 31, 1997, CMA New York Municipal Money Fund
paid shareholders a net annualized yield of 2.92%*. As of March 31,
1997, the Fund's 7-day yield was 2.93%.
Investment Outlook and Strategy
During the six-month period ended March 31, 1997, the New York State
economy continued to show modest improvement spurred on by continued
personal income gains which prompted strong consumer spending. Also,
because of continued record high consumer confidence levels, tourism
and its related industries, such as entertainment and dining,
recorded a banner year. New York City's financial fortunes were
greatly enhanced during this six-month period because of a surging
stock market and its effect on Wall Street's salaries, bonuses and
spending habits.
<PAGE>
[FN]
* Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In March 1997, Standard & Poor's Corp. affirmed its A- rating on New
York State's outstanding general obligation debt. Ratings are based
on the state's diverse economic base which continues to expand
modestly, improving income levels and improved financial position.
The state experienced positive fiscal operations in four of the last
five years. Better-than-expected economic performance through fiscal
1997 contributed to a $1.3 billion projected surplus on March 31,
1997. However, Governor Pataki and State legislators acknowledged
that the state budget would miss the April 1, 1997 deadline to adopt
a new budget and agreed to extend the current budget until May 9,
1997.
During the six-month period ended March 31, 1997, the new issuance
of short-term New York debt totaled approximately $4.2 billion, an
increase of approximately 7.0% from the $3.9 billion in debt issued
in the six-month period ended September 30, 1996. Net assets of CMA
New York Municipal Money Fund ranged between $1.0 billion and $1.3
billion. Net assets as of March 31, 1997 stood at $1.2 billion. We
maintained the average portfolio maturity of the Fund in the
50-day--75-day range during the six months ended March 31, 1997,
in anticipation of short-term interest rates remaining unchanged as
economic growth continued to advance modestly. This positioning
greatly enhanced performance as fixed-rate notes purchased in the
3.75%--4.00% range and tax-exempt commercial paper outperformed the
variable rate note sector.
On March 25, 1997 the Federal Reserve Board increased the Federal
Funds rate 25 basis points (0.25%) to 5.50% to preemptively contain
any inflationary pressures as a result of a tight labor market. We
anticipate the possibility of another interest rate hike in May 1997
and presently expect to maintain our maturity in the 40-day--60-day
range until the economy slows and interest rates stabilize.
We continue to work very closely with our credit department to
maintain the highest quality portfolio possible. Diversification and
credit quality remain paramount to the Fund, and we will continue to
closely monitor the everchanging marketplace.
In Conclusion
We thank you for your support of the CMA New York Municipal Money
Fund, and we look forward to serving your investment needs in the
months and years ahead.
Sincerely,
<PAGE>
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Edward J. Andrews)
Edward J. Andrews
Vice President and Portfolio Manager
May 1, 1997
Portfolio Abbreviations for CMA New York Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1997 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <C>
New York-- $ 1,079 Albany, New York, Housing Authority, Private Act Revenue Bonds (Historic
94.3% Bleeker Terrace), VRDN, AMT, 3.50% due 3/01/2015 (a) $ 1,079
2,500 Albany, New York, IDA, IDR, Refunding (Albany Ventures Inc. Project),
VRDN, 3.55% due 12/29/2010 (a) 2,500
7,000 Amityville, New York (Union Free School District), TAN, UT, 4.50% due
6/26/1997 7,006
4,284 Binghamton, New York, BAN, 4.25% due 5/29/1997 4,288
4,000 Buffalo, New York, RAN, Series A, 4.25% due 7/15/1997 4,007
Eagle Tax Exempt Trust, VRDN (a):
27,000 Series 1994-3201, 3.61% due 4/01/2034 27,000
7,200 Series 1994-C4, 3.56% due 8/01/2003 7,200
20,000 Series 1995-3201, 3.56% due 8/15/2024 20,000
19,000 Eastern Suffolk, New York, Board Cooperative Educational Services
District, RAN, 4.50% due 6/26/1997 19,022
11,000 Erie County, New York, RAN, UT, Series A, 4.25% due 4/17/1997 11,003
7,000 Farmingdale, New York (Union Free School District), TAN, UT, 4.50% due
6/26/1997 7,009
Harrison, New York (Central School District), BAN, UT:
7,000 4.50% due 7/18/1997 7,012
2,950 (School Building Improvement), 4.25% due 3/19/1998 2,963
6,000 Hicksville, New York (Union Free School District), TAN, UT, 4.25% due 6/26/1997 6,004
12,000 Longwood, New York (Central School District at Middle Island), TAN, UT,
4.50% due 6/26/1997 12,015
6,161 Middletown, New York, BAN, UT, Series B, 4.50% due 10/03/1997 6,179
3,000 Monroe County, New York, IDA (Coopervision Project), VRDN, 3.70% due
1/01/2012 (a) 3,000
2,000 Municipal Assistance Corporation, City of New York, New York, Refunding,
Series E, 4% due 7/01/1997 2,001
Nassau County, New York, UT:
10,000 BAN, Series A, 4% due 8/15/1997 10,015
7,871 BAN, Series A, 4.25% due 8/15/1997 7,890
30,000 RAN, Series B, 4.25% due 4/15/1997 30,006
New York City, New York, CP:
32,400 3.45% due 4/07/1997 32,400
1,500 3.50% due 4/07/1997 1,500
11,300 3.35% due 4/09/1997 11,300
15,000 3.40% due 4/09/1997 15,000
26,900 3.50% due 4/11/1997 26,900
14,400 3.40% due 5/09/1997 14,400
18,000 3.50% due 6/10/1997 18,000
2,000 3.50% due 7/11/1997 2,000
9,000 3.50% due 7/18/1997 9,000
10,000 3.55% due 7/18/1997 10,000
11,000 3.45% due 8/07/1997 11,000
7,000 3.55% due 8/08/1997 7,000
1,500 3.55% due 8/21/1997 1,500
</TABLE>
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1997 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <C>
New York New York City, New York, GO, VRDN (a):
(continued) $ 1,000 Series C, Subseries C-4, 3.70% due 8/01/1997 $ 1,000
3,500 UT, Series B, Sub-Series B-2, 3.65% due 8/15/2003 (d) 3,500
3,100 UT, Series B, Sub-Series B-3, 3.65% due 8/15/2004 (d) 3,100
1,200 UT, Series E, 3.70% due 5/15/1997 1,200
7,400 UT, Sub-Series A-4, 3.70% due 8/01/2022 7,400
6,800 UT, Sub-Series A-4, 3.70% due 8/01/2023 6,800
1,200 UT, Sub-Series E-5, 3.70% due 8/01/2016 1,200
1,100 UT, Sub-Series E-5, 3.70% due 8/01/2017 1,100
1,100 UT, Sub-Series E-5, 3.70% due 8/01/2019 1,100
New York City, New York, Housing Development Corporation, M/F Mortgage
Revenue Bonds, VRDN, AMT, Series A (a):
10,000 (West 43rd Street Development), 3.40% due 12/01/2029 10,000
32,400 (West 89th Street), 3.45% due 12/01/2029 32,400
1,700 New York City, New York, IDA, IDR, VRDN, AMT (Bowe Industrial Inc.
Project), Series K, 3.45% due 11/01/2010 (a) 1,700
New York City, New York, Municipal Water Financing Authortity, Water and
Sewer System Revenue Bonds:
14,000 CP, 3.60% due 4/07/1997 14,000
12,000 CP, 3.40% due 4/21/1997 12,000
10,000 CP, 3.45% due 5/16/1997 10,000
9,000 CP, 3.60% due 6/12/1997 9,000
5,000 CP, 3.60% due 8/06/1997 5,000
5,000 Series A, 7% due 6/15/1997 (b) 5,106
2,360 Series A, 8.75% due 6/15/1997 (b) (f) 2,431
20,850 VRDN, Series C, 3.65% due 6/15/2023 (a) (c) 20,850
12,500 VRDN, Series G, 3.75% due 6/15/2024 (a) (c) 12,500
New York City, New York, RAN, UT:
33,000 Series A, 4.50% due 4/15/1997 33,011
51,700 Series B, 4.50% due 6/30/1997 51,813
3,100 New York City, New York, Trust Cultural Resource Revenue Bonds (Solomon
R. Guggenheim), VRDN, Series B, 3.50% due 12/01/2015 (a) 3,100
New York State, CP:
4,900 Series N, 3.40% due 5/05/1997 4,900
7,500 Series S, 3.15% due 4/04/1997 7,500
10,000 Series S, 3.40% due 5/13/1997 10,000
New York State Dormitory Authority Revenue Bonds:
1,900 (City University Systems Consolidated), Series A, 8.125% due 7/01/1997 (b) 1,959
5,160 (Memorial Sloan Kettering), CP, Series A, 3.55% due 4/08/1997 5,160
3,200 (Memorial Sloan Kettering), CP, Series A, 3.50% due 7/14/1997 3,200
<PAGE> 1,000 (Memorial Sloan Kettering), CP, Series B, 3.40% due 4/08/1997 1,000
8,550 (Memorial Sloan Kettering), CP, Series B, 3.45% due 7/16/1997 8,550
9,300 (Memorial Sloan Kettering), CP, Series C, 3.35% due 4/07/1997 9,300
18,000 (Memorial Sloan Kettering), CP, Series C, 3.40% due 4/08/1997 18,000
4,500 (Memorial Sloan Kettering), CP, Series C, 3.55% due 4/08/1997 4,500
6,000 Refunding (City University Systems--3rd Generation Resources), Series 2,
4.75% due 7/01/1997 6,008
New York State Energy Research and Development Authority, Electric
Facilities Revenue Bonds (Long Island Lighting Co.), VRDN, AMT (a):
5,000 Series A, 3.55% due 8/01/2025 5,000
18,300 Series B, 3.55% due 11/01/2023 18,300
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1997 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <C>
New York $14,780 New York State Energy Research and Development Authority, PCR (Long Island
(continued) Lighting Co. Project), Series B, 3.60% due 3/01/1998 $ 14,780
3,000 New York State Environmental Facilities Corporation, PCR, State Water
Revolving Fund (Pooled Loan), Series C, 3.73% due 7/15/1997 3,000
26,400 New York State Environmental Facilities Corporation, Resource Recovery
Revenue Bonds (OFS Equity Huntington Project), VRDN, AMT, 3.70% due
11/01/2014 (a) 26,400
3,150 New York State Environmental Facilities Corporation, Solid Waste
Disposal Revenue Bonds (General Electric Co. Project), CP, AMT, Series A,
3.50% due 7/14/1997 3,150
5,960 New York State, GO, 5% due 3/01/1998 6,026
New York State, HFA, Revenue Bonds, VRDN (a):
20,000 (East 84th Street), AMT, Series A, 3.40% due 11/01/2028 20,000
400 (Normandie Court-I Project), 3.40% due 5/15/2015 400
20,000 New York State, Local Government Assistance Corporation Revenue Bonds, CP,
3.70% due 4/07/1997 20,000
New York State Medical Care Facilities, Finance Agency Revenue Bonds,
VRDN, Series A (a):
5,300 (Children's Hospital of Buffalo), 3.15% due 11/01/2005 5,300
3,700 (Pooled Loan Equipment Program II), 3.30% due 11/01/2003 3,700
1,100 Refunding (Huntington Hospital Project), Series A, 8.125% due
11/01/1997 (b) 1,149
805 New York State Mortgage Agency, Revenue Refunding Bonds (Homeowner
Mortgage), AMT, Series 54, 3.80% due 4/01/1997 805
New York State Power Authority, Revenue and General Purpose Bonds, CP:
21,500 3.20% due 4/01/1997 21,500
22,800 3.30% due 4/04/1997 22,800
<PAGE> 25,000 3.65% due 4/07/1997 25,000
20,000 3.45% due 4/09/1997 20,000
39,770 New York State Power Authority, Revenue and General Purpose Bonds
(Junior Lien), 3.50% due 9/01/1997 39,770
7,000 New York State Thruway Authority, General Revenue Bonds, VRDN, 3.50%
due 1/01/2025 (a) 7,000
4,000 New York State Urban Development Corporation Revenue Bonds
(Correctional Facilities), Series C, 7.625% due 1/01/1998 (b) (e) 4,197
5,860 Oneida, New York, City School District, UT, 4.25% due 6/15/1997 5,865
5,850 Oswego, New York, BAN, UT, 4.50% due 10/08/1997 5,867
10,000 Patchogue-Medford, New York (Unified Free School District), TAN, UT,
4.50% due 6/26/1997 10,015
Port Authority of New York and New Jersey, Special Obligation Revenue
Bonds (Versatile Structure Obligations), VRDN (a):
15,700 AMT, Series 1, 3.70% due 8/01/2028 15,700
4,600 Series 3, 3.65% due 6/01/2020 4,600
7,300 Series 5, 3.65% due 8/01/2024 7,300
9,765 Port Authority of New York and New Jersey, VRDN, AMT, Series SG-52,
3.50% due 3/01/2016 (a) (d) 9,765
3,318 Rensselaer County, New York, BAN, UT, Series A, 4.25% due 6/27/1997 3,320
7,000 Rochester, New York, RAN, UT, Series III, 4.50% due 6/30/1997 7,017
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1997 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <C>
New York $ 1,880 Saint Lawrence County, New York, IDA, Civic Facility Revenue Bonds
(concluded) (Clarkson University Project), VRDN, 3.60% due 10/01/2005 (a) $ 1,880
7,000 Saratoga Springs, New York, City School District, RAN, UT, 3.75% due
6/27/1997 7,003
4,000 Schenectady County, New York, IDA, IDR (Super Steel Inc. Project),
VRDN, AMT, Series A, 3.50% due 5/01/2006 (a) 4,000
3,236 Smithtown, New York, BAN, UT, Series B, 4% due 5/02/1997 3,237
28,600 Suffolk County, New York, IDA, IDR (Nissequogue Cogeneration Partners),
VRDN, 3.45% due 12/15/2023 (a) 28,600
38,580 Suffolk County, New York, TAN, UT, Series I, 4% due 8/14/1997 38,648
Suffolk County, New York, Water Authority, BAN, VRDN, UT (a):
2,600 3.35% due 12/21/1999 2,600
15,000 3.35% due 2/08/2001 15,000
Syracuse, New York, BAN, UT:
5,000 AMT, Series B, 4.15% due 12/19/1997 5,007
15,000 Series A, 3.90% due 12/19/1997 15,016
11,535 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Community
Development Properties--Larned Project), VRDN, 3.60% due 4/01/2018 (a) 11,535
2,360 Triborough Bridge and Tunnel Authority, New York, General Purpose
Revenue Bonds, Series B, 5% due 1/01/1998 2,382
7,000 Valley Stream, New York, Central High School District, TAN, UT, 4.25%
due 6/26/1997 7,006
<PAGE>
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank, CP:
4.6% 46,600 3.40% due 5/08/1997 46,600
7,000 3.55% due 5/09/1997 7,000
3,500 3.45% due 5/12/1997 3,500
Total Investments (Cost--$1,223,327*)--98.9% 1,223,327
Other Assets Less Liabilities--1.1% 12,995
----------
Net Assets--100.0% $1,236,322
==========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
March 31, 1997.
(b)Prerefunded.
(c)FGIC Insured.
(d)MBIA Insured.
(e)AMBAC Insured.
(f)BIG Insured.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1997
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,223,326,716) (Note 1a) $ 1,223,326,716
Cash 521,495
Receivables:
Interest $ 11,113,368
Securities sold 2,369,733 13,483,101
---------------
Prepaid registration fees and other assets (Note 1d) 27,202
---------------
Total assets 1,237,358,514
---------------
<PAGE>
Liabilities:
Payables:
Investment adviser (Note 2) 471,864
Distributor (Note 2) 362,101
Beneficial interest redeemed 32 833,997
---------------
Accrued expenses and other liabilities 202,195
---------------
Total liabilities 1,036,192
---------------
Net Assets $ 1,236,322,322
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 123,720,521
Paid-in capital in excess of par 1,113,484,685
Accumulated realized capital losses--net (Note 4) (882,884)
---------------
Net Assets--Equivalent to $1.00 per share based on 1,237,205,206 shares of
beneficial interest outstanding $ 1,236,322,322
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1997
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 40,146,064
Expenses:
Investment advisory fees (Note 2) $ 5,150,683
Distribution fees (Note 2) 1,405,157
Transfer agent fees (Note 2) 205,845
Registration fees (Note 1d) 134,464
Accounting services (Note 2) 106,293
Custodian fees 69,745
Professional fees 55,784
Printing and shareholder reports 54,167
Pricing fees 12,179
Trustees' fees and expenses 10,706
Other 12,704
---------------
Total expenses 7,217,727
---------------
Investment income--net 32,928,337
Realized Loss on Investments--Net (Note 1c) (802)
---------------
Net Increase in Net Assets Resulting from Operations $ 32,927,535
===============
<PAGE>
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1997 1996
<S> <C> <C>
Operations:
Investment income--net $ 32,928,337 $ 31,054,963
Realized gain (loss) on investments--net (802) 2,835
---------------- ---------------
Net increase in net assets resulting from operations 32,927,535 31,057,798
---------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (32,920,755) (31,054,963)
---------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (32,920,755) (31,054,963)
---------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 4,110,518,531 3,670,775,973
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 32,921,515 31,055,127
---------------- ---------------
4,143,440,046 3,701,831,100
Cost of shares redeemed (4,039,388,472) (3,489,422,207)
---------------- ---------------
Net increase in net assets derived from beneficial interest transactions 104,051,574 212,408,893
---------------- ---------------
Net Assets:
Total increase in net assets 104,058,354 212,411,728
Beginning of year 1,132,263,968 919,852,240
---------------- ---------------
End of year $ 1,236,322,322 $ 1,132,263,968
=============== ===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Investment income--net .03 .03 .03 .02 .02
---------- ---------- ---------- ---------- ----------
Total from investment operations .03 .03 .03 .02 .02
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.03) (.03) (.03) (.02) (.02)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.92% 3.17% 2.59% 1.79% 2.19%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .63% .64% .67% .67% .67%
========== ========== ========== ========== ==========
Investment income--net 2.88% 3.12% 2.59% 1.78% 2.16%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $1,236,322 $1,132,264 $ 919,852 $ 772,760 $ 665,970
========== ========== ========== ========== ==========
See Notes to Financial Statements.
</TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA New York Municipal Money Fund (the "Fund") is part of CMA Multi-
State Municipal Series Trust (the "Trust"). The Fund is registered
under the Investment Company Act of 1940 as a non-diversified, open-
end management investment company. The following is a summary of
significant accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax and back-up withholding tax withheld) in
additional fund shares at net asset value. Dividends are declared
from the total of net investment income, excluding discounts earned
other than original issue discounts. Net realized capital gains, if
any, are normally distributed annually after deducting prior years'
loss carryforward. The Fund may distribute capital gains more
frequently than annually in order to maintain the Fund's net asset
value at $1.00 per share.
(f) Reclassification--Generally accepted accounting principles
require that certain components of net assets be adjusted to reflect
permanent differences between financial and tax reporting. Accordingly,
current year's permanent book/tax differences of $7,582 have been
reclassified between accumulated net realized capital losses and
undistributed net investment income. These reclassifications
have no effect on net assets or net asset value per share.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
<PAGE>
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets, at the following annual rates: 0.50%
of the first $500 million of average daily net assets; 0.425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1
billion.
CMA NEW YORK MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the
annual rate of 0.125% of average daily net assets of the Fund. The
distribution fee is to compensate MLPF&S financial consultants and
other directly involved branch office personnel for selling shares
of the Fund and for providing direct personal services to
shareholders. The distribution fee is not compensation for the
administrative and operational services rendered to the Fund by
MLPF&S in processing share orders and administering shareholder
accounts.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLFDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
4. Capital Loss Carryforward:
At March 31, 1997, the Fund had a net capital loss carryforward of
approximately $883,000, of which $81,000 expires in 1998, $203,000
expires in 2001, $293,000 expires in 2002, $304,000 expires in 2003
and $2,000 expires in 2004. This amount will be available to offset
like amounts of any future taxable gains.
<PAGE>
<AUDIT-REPORT>
CMA NEW YORK MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA New York Municipal Money Fund of
CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of CMA New York
Municipal Money Fund of CMA Multi-State Municipal Series Trust as of
March 31, 1997, the related statements of operations for the year
then ended and changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of
the years in the five-year period then ended. These financial
statements and the financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion
on these financial statements and the 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 at March
31, 1997 by correspondence with the custodian. 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, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
CMA New York Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1997, the results of its operations,
the changes in its net assets, and the financial highlights for the
respective stated periods in conformity with generally accepted
accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
May 2, 1997
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA New
York Municipal Money Fund of CMA Multi-State Municipal Series Trust
during its taxable year ended March 31, 1997 qualify as tax-exempt
interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund
during the year.
Please retain this information for your records.
