LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report for Dreyfus
Municipal Cash Management Plus, Inc. For the twelve-month period ended
December 31, 1994, the Fund's Class A shares provided a yield of 2.73%, and
Class B shares provided a yield of 2.48%. After taking into account the
effect of compounding, the effective yield for Class A shares was 2.76% and
2.51% for Class B shares.* Dividends of approximately $.027 per Class A share
and $.025 per Class B share paid during the period were exempt from Federal
income tax.**
Our last letter recapped the series of Federal Reserve Board moves
throughout the first half of 1994_moves designed to reach a more neutral
monetary policy in response to continued economic expansion. With further
evidence of economic strength in the latter half of the year, the Fed
continued its move toward a tighter policy. With two successive moves in
August and November, the Fed increased rates an additional 175 basis points.
By November 15, the last tightening move of the year, total monetary policy
actions taken in 1994 increased the Discount Rate from 3.00% to 4.75% and the
Federal Funds rate from 3.00% to 5.50%. Throughout the year, rates on
municipal money market funds increased in response to these higher rates.
Over the period of tightening, the average yield for all tax-free money funds
increased 122 basis points, to 3.02%.
One of the most significant events to impact the short-term municipal
market was the bankruptcy filing by Orange County, California, which occurred
in the second half of the year. It is important to note that your Fund did
not hold any direct obligations of Orange County that were affected by the
filing. However, the uncertainty which existed at the time of the County's
disclosure created some temporary market weakness. In light of this
uncertainty, coupled with the potential for additional Federal Reserve action
in late January, we chose to invest most available proceeds in the short end
of the yield curve. Throughout this process, the securities selected for
investment were those issues that met our high quality standards and that
provided a balance of income and liquidity consistent with our conservative
investment philosophy. We will continue to monitor these developments and
will adjust our strategy as changes in the market warrant.
We have included a current Statement of Investments and recent financial
statements for your review and look forward to serving your investment needs
in the future.
Very truly yours,
(Logo Signature)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
January 16, 1995
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
** Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
-------------- ------------
<S> <C> <C>
CALIFORNIA--3.3%
California School Cash Reserve Program Authority, 4.50%, Series A, 7/5/95... $ 7,000,000 $ 7,025,616
COLORADO--2.1%
Colorado Student Obligation Bond Authority, Student Loan Revenue, VRDN
5.05%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 4,400,000 4,400,000
GEORGIA--4.2%
Municipal Electric Authority, General Resolution
3.05%, Series C, 3/1/95 (SBPA; Morgan Guaranty Trust Co.)............... 8,000,000 8,000,000
Rockdale County Development Authority, Industrial Revenue, VRDN
(Liochem Inc. Project) 6% (LOC; Sanwa Bank) (a,b)....................... 1,000,000 1,000,000
HAWAII--3.3%
Honolulu City and County, MFHR, VRDN (HaleKua Gardens Project)
5.75%, Series A (LOC; Bank of Tokyo) (a,b).............................. 7,071,000 7,071,000
ILLINOIS--1.4%
Village of Skokie, IDR, VRDN (Skokie Fashion Square Associates)
6% (LOC; Bankers Trust) (a,b)........................................... 1,000,000 1,000,000
West Chicago, IDR, VRDN (Acme Printing Ink Project)
5.875% (LOC; Bank of Tokyo) (a,b)....................................... 2,000,000 2,000,000
INDIANA--3.3%
Indiana Bond Bank Advance Education Funding Program, Tax Exempt Notes
3.03%, Series A-2, 1/17/95.............................................. 7,000,000 7,000,834
IOWA--3.0%
Iowa Finance Authority, SWDR, VRDN (Cedar River Paper Co. Project)
5.05%, Series A (LOC; Swiss Bank Corp.) (a,b)........................... 6,400,000 6,400,000
KENTUCKY--5.0%
Boone County, IDR, VRDN (Curtin Matheson Scientific Project)
5.60% (LOC; Barclays Bank) (a,b)........................................ 1,500,000 1,500,000
Carroll County, Collateralized Solid Waste Disposal Facilities Revenue, VRDN
(Utilities Co. Project) 4.95%, Series A (a)............................. 9,000,000 9,000,000
Georgetown, Public Project Revenue, VRDN 6% (LOC; Bank of Tokyo) (a,b)...... 80,000 80,000
LOUISIANA--9.3%
New Orleans, Aviation Board Revenue, VRDN (Passenger Facility Charge
Projects)
4.10% (LOC: Banque Paribas and Canadian Imperial Bank of Commerce) (a,b) 10,000,000 10,000,000
Parish of Plaquemines, Environmental Revenue, VRDN
(British Petroleum Exploration and Oil Project)
5% (Corp. Guaranty; British Petroleum) (a).............................. 5,500,000 5,500,000
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- ------------
LOUISIANA (CONTINUED)
Saint Charles Parish, PCR, VRDN (Shell Oil Co. Norco Project)
4.95% (Corp. Guaranty; Shell Oil Co.) (a)............................... $ 4,400,000 $ 4,400,000
MARYLAND--2.5%
Maryland Energy Financing Administration, Limited Obligation Revenue, VRDN
(Baltimore Ferst Project) 5.05% (LOC; Credit Suisse) (a,b).............. 5,400,000 5,400,000
MASSACHUSETTS--1.9%
Massachusetts Education Loan Authority, Education Loan Revenue, VRDN
4.65%, Issue E-Series A (Insured; FGIC) (a)............................. 4,000,000 4,000,000
MICHIGAN--5.3%
Michigan Higher Education Student Loan Authority, Revenue, VRDN 5.05%, Series
XII-F
(Insured; AMBAC and Liquidity Agreement; Sumitomo Bank) (a)............. 2,000,000 2,000,000
Michigan Housing Development Authority, Rental Housing Revenue, Refunding
3.10%, Series C, 2/28/95 (LOC; Credit Suisse) (b)....................... 7,000,000 7,000,000
Midland County Economic Development Corp., Economic Development Limited
Obligation Revenue, VRDN (Dow Chemical Co. Project)
5.10% (Corp. Guaranty; Dow Chemical) (a)................................ 2,300,000 2,300,000
MINNESOTA--1.1%
Minnesota Housing Finance Agency, Single Family Mortgage
2.60%, Series D, 1/12/95 (GIC; Societe Generale)........................ 2,305,000 2,305,000
MISSOURI--3.5%
Mexico Industrial Development Authority, Industrial Revenue, VRDN
(Optec DD USA Inc. Project) 5.625% (LOC; Industrial Bank of Japan) (a,b) 1,000,000 1,000,000
Missouri Higher Education Loan Authority, Student Loan Revenue, Refunding,
VRDN
5.50%, Series B (Insured; MBIA and Liquidity Facility; Internationale
Nederlanden Bank) (a)................................................... 6,500,000 6,500,000
NEW JERSEY--4.7%
State of New Jersey, TRAN 5%, Series A, 6/15/95............................. 10,000,000 10,048,500
NEW YORK--7.8%
New York State Energy, Research and Development Authority, PCR (Lilco
Project)
3%, Series B, 3/1/95 (LOC; Deutsche Bank) (b)........................... 11,550,000 11,550,000
Suffolk County, TAN 5.25%, 8/15/95
(LOC; Westdeutsche Landesbank Girozentrale) (b)......................... 5,000,000 5,013,450
NORTH CAROLINA--2.2%
Craven County Industrial Facilities and Pollution Control Financing
Authority,
VRDN (Craven Wood Energy) 5.10%, Series B (LOC; ABN-Amro Bank) (a,b).... 4,600,000 4,600,000
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
OHIO--1.9%
Montgomery County, IDR, VRDN (Modern Industrial Plastic Project)
5.875% (LOC; Industrial Bank of Japan) (a,b)............................ $ 1,000,000 $ 1,000,000
Piqua, IDR, VRDN (Berwick Steel Co. Project) 5.75%, (LOC; Sanwa Bank) (a,b). 3,000,000 3,000,000
OREGON--3.3%
Klamoth Falls, Electric Revenue (Salt Caves Hydroelectric)
3.75%, Series E, 5/2/95 (Escrowed in; U.S. Treasury Bills).............. 5,000,000 5,000,000
State of Oregon, EDR, VRDN (Jae Oregon Inc. Project)
5.875% (LOC; Bank of Tokyo) (a,b)....................................... 2,000,000 2,000,000
SOUTH CAROLINA--1.9%
Sumter County, Industrial Revenue, VRDN (Bendix Corp.)
5.875% (LOC; Sumitomo Bank) (a,b)....................................... 4,000,000 4,000,000
TEXAS--17.2%
Greater East Texas Higher Education Authority Inc., Student Loan Revenue,
VRDN:
5.60%, Series B (LOC; Student Loan Marketing Association) (a,b)......... 3,000,000 3,000,000
(Senior Lein) 5.60%, Series A (LOC; Student Loan Marketing Association) (a,b) 4,500,000 4,500,000
Harris County Industrial Development Corp., PCR, VRDN (Exxon Corp. Project)
4.95% (Corp. Guaranty; Exxon Corp.) (a)................................. 4,100,000 4,100,000
Houston Independent School District, TRAN 4.50%, 8/31/95.................... 5,000,000 5,013,745
North Texas Higher Education Authority Inc., Student Loan Revenue, Refunding
VRDN, 5.25% (LOC; Fuji Bank) (a,b)...................................... 10,500,000 10,500,000
San Antonio Housing Finance Corp., MFHR, VRDN (Sunrise Apartments Project)
5.10% (LOC; Swiss Bank Corp.) (a,b)..................................... 2,500,000 2,500,000
State of Texas, TRAN 5%, 8/31/95............................................ 6,900,000 6,912,168
VERMONT--2.0%
Vermont Industrial Development Authority, IDR, VRDN (Ryegate Project)
5.60% (LOC; ABN-Amro Bank) (a,b)........................................ 4,300,000 4,300,000
VIRGINIA--2.8%
Charles City and County Industrial Development Authority, Exempt Facility
Revenue,
VRDN (Chambers Development Virginia Inc. Project)
6% (LOC; North Carolina National Bank) (a,b)............................ 4,500,000 4,500,000
Chesapeake Industrial Development Authority, IDR, VRDN (Sumitomo Mach Co.)
5.75% (LOC; Sumitomo Bank) (a,b)........................................ 1,500,000 1,500,000
WISCONSIN--7.0%
City of Milwaukee, Promissory Notes, RAN 3.50%, Series A, 2/23/95........... 15,000,000 15,010,571
--------------
TOTAL INVESTMENTS (cost $212,930,884)....................................... $212,930,884
=============
</TABLE>
<TABLE>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation PCR Pollution Control Revenue
EDR Economic Development Revenue RAN Revenue Anticipation Notes
FGIC Financial Guaranty Insurance Company SBPA Standby Bond Purchase Agreement
GIC Guaranteed Investment Contract SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue TAN Tax Anticipation Notes
LOC Letter of Credit TRAN Tax and Revenue Anticipation Notes
MBIA Municipal Bond Investors Assurance VRDN Variable Rate Demand Notes
MFHR Multi-Family Housing Revenue
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 84.5%
AAA/AA (d) Aaa/Aa (d) AAA/AA (d) .5
Not Rated (e) Not Rated (e) Not Rated (e) 15.0
-------
100.0%
=======
</TABLE>
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 December 31, 1994, 56.1% of the
Fund's net assets are backed by letters of credit issued by domestic
banks, foreign banks and Government agencies.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(e) 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 notes to financial statements.
<TABLE>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value_Note 1(a)........................... $212,930,884
Cash.................................................................... 4,963,231
Interest receivable..................................................... 1,885,399
Prepaid expenses........................................................ 19,989
--------------
219,799,503
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 36,509
Payable for investment securities purchased............................. 25,643,090 25,679,599
------------- ------------
NET ASSETS ................................................................ $194,119,904
============
REPRESENTED BY:
Paid-in capital......................................................... $194,263,762
Accumulated net realized (loss) on investments.......................... (143,858)
--------------
NET ASSETS at value......................................................... $194,119,904
============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 192,852,192
============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 1,411,570
============
NET ASSET VALUE per share:
Class A Shares
($192,709,773 / 192,852,192 shares)................................... $1.00
=====
Class B Shares
($1,410,131 / 1,411,570 shares)....................................... $1.00
=====
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $8,721,972
EXPENSES:
Management fee_Note 2(a).............................................. $617,875
Distribution fees (Class B shares)_Note 2(b).......................... 13,664
----------
TOTAL EXPENSES.................................................... 631,539
------------
INVESTMENT INCOME--NET...................................................... 8,090,433
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (143,858)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $7,946,575
============
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-----------------------------------
1993 1994
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income_net................................................... $ 8,402,669 $ 8,090,433
Net realized gain (loss) on investments................................. 4,545 (143,858)
---------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 8,407,214 7,946,575
---------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares........................................................ (8,402,666) (7,957,559)
Class B shares........................................................ (3) (132,874)
Net realized gain on investments:
Class A shares........................................................ (4,545) --
Class B shares........................................................ -- --
---------------- -------------
TOTAL DIVIDENDS................................................... (8,407,214) (8,090,433)
---------------- -------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares........................................................ 4,389,322,884 3,749,958,726
Class B shares........................................................ 500 129,706,391
Dividends reinvested:
Class A shares........................................................ 6,579,664 6,736,334
Class B shares........................................................ 3 124,735
Cost of shares redeemed:
Class A shares........................................................ (4,290,735,104) (3,928,426,717)
Class B shares........................................................ -- (128,420,059)
---------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS........................................... 105,167,947 (170,320,590)
---------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 105,167,947 (170,464,448)
NET ASSETS:
Beginning of year....................................................... 259,416,405 364,584,352
---------------- -------------
End of year............................................................. $ 364,584,352 $ 194,119,904
================= =============
</TABLE>
See notes to financial statements.
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
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 the Fund's financial statements.
<TABLE>
CLASS A SHARES CLASS B SHARES
------------------------------------------------- ------------------
YEAR ENDED
YEAR ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------- ------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 1993(2) 1994
------- ------- ------- ------- ------ ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------ ------- -------
INVESTMENT OPERATIONS:
Investment income_net................. .0125 .0465 .0309 .0241 .0273 .0053 .0248
Net realized and unrealized gain (loss) on
investments......................... -- -- .0002. -- (.0007) -- (.0010)
------- ------- ------- ------- ------ ------- -------
TOTAL FROM INVESTMENT OPERATIONS.... .0125 .0465 .0311 .0241 .0266 .0053 .0238
------- ------- ------- ------- ------ ------- -------
DISTRIBUTIONS:
Dividends from investment income_net.. (.0125) (.0465) (.0309) (.0241) (.0273) (.0053)...(.0248)
Dividends from net realized gain on investments -- -- (.0002) -- -- -- --
------- ------- ------- ------- ------ ------- -------
TOTAL DISTRIBUTIONS................. (.0125) (.0465) (.0311) (.0241) (.0273) (.0053)...(.0248)
------- ------- ------- ------- ------ ------- -------
Net asset value, end of year.......... $1.0000 $1.0000 $1.0000 $1.0000 $ .9993 $1.0000 $ .9990
======= ======= ======= ======= ======= ======= ========
TOTAL INVESTMENT RETURN................... 5.90%(3) 4.75% 3.16% 2.44% 2.76% 2.12%(3) 2.51%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .20%(3) .20% .20% .20% .20% .45%(3) .45%
Ratio of net investment income to
average net assets.................. 6.55%(3) 4.54% 3.04% 2.40% 2.62% 2.14%(3) 2.43%
Decrease reflected in above
expense ratios due to undertakings
by the Manager (limited to the
expense limitation provision of the
management agreement)............... 2.30%(3) .33% .10% .07% -- -- --
Net Assets, end of year (000's Omitted) $22,911 $151,085 $259,416 $364,584 $192,710 $1 $1,410
(1) From October 15, 1990 (commencement of operations) to December 31, 1990.
(2) From September 30, 1993 (commencement of initial offering) to
December 31, 1993.
(3) Annualized.
</TABLE>
See notes to financial statements.
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
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, until August 24, 1994, acted as the distributor of the Fund's
shares, which are sold to the public without a sales load. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
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 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.
(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.
(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 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 $144,000
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to December 31, 1994. If not
applied, the carryover expires in fiscal 2002.
At December 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 MUNICIPAL CASH MANAGEMENT PLUS
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 and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund for any full year.
The most stringent state expense limitation applicable to the Fund presently
requires reimbursement of expenses in any full year that such expenses
(excluding distribution expenses and certain expenses as described above) exce
ed 2 1/2% of the first $30 million, 2% of the next $70 million and 1 1/2% of
the excess over $100 million of the average value of the Fund's net assets in
accordance with California "blue sky" regulations.
Currently, due to an undertaking, the Manager, and not the Fund, is
liable for all 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) On August 5, 1994, Fund shareholders approved a revised Class B
Service Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to
the Plan, effective August 24, 1994, the Fund reimburses the Distributor for
distributing the Fund's Class B shares. The Fund also pays The Dreyfus
Corporation and Dreyfus Service Corporation, 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 sharehol
der accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts, at an aggregate annual rate of .25 of 1%
of the value of the Fund's Class B shares average daily net assets. Both the
Distributor and Dreyfus may pay one or more service Agents 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 period from January 1, 1994 through August 23, 1994, the
Fund's Service Plan ("prior Class B Service Plan") provided that the Fund pay
Dreyfus Service Corporation 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. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's Class B shares owned by clients of the Service Agent.
During the year ended December 31, 1994, $9,841 was charged to the Fund
pursuant to the Plan and $3,823 was charged to the Fund pursuant to the Prior
Class B Service Plan.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives an annual fee of $3,000 and an attendance fee of $500 per meeting.
Prior to February 24, 1994, the annual fee was $1,000 and the attendance fee
was $250.
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
We have audited the accompanying statement of assets and liabilities of
Dreyfus Municipal Cash Management Plus, including the statement of
investments, as of December 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 December 31, 1994 by correspondence with the custodian
and brokers. 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 Municipal Cash Management Plus at December 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.
(Logo Signature)
New York, New York
February 6, 1995
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income--net during the calendar year ended
December 31, 1994 as "exempt-interest dividends" (not generally subject to
regular Federal income tax).
DREYFUS MUNICIPAL CASH
MANAGEMENT PLUS
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
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. 132/676AR9412
