DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Municipal Cash
Management Plus. For its annual reporting period ended December 31, 1995,
your Fund's Class A shares produced a yield of 3.79% and Class B shares
generated a 3.54% yield for this period. Income dividends of approximately
$.038 per share were paid during the period for Class A shares and $.035 for
Class B shares. Reinvesting these dividends and calculating the effect of
compounding resulted in effective yields of 3.85% and 3.59% 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
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve Board to
further ease the Federal Funds rate in December. This was the second
reduction for this important short-term rate in 1995, the first occurring in
July. The latest 25-basis-point reduction in December put the rate at 5.50%.
Major incentives for this additional reduction were the inflation report in
November - the increase in the Consumer Price Index was flat for the first
time in 4 1/2 years - and the generally slow rate of economic growth. As it
did in July, the Federal Reserve left unchanged the discount rate - the rate
at which the Federal Reserve lends to member banks. The discount rate
remained at 5.25% throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and a very modest gain in industrial production lent
credence to fears about the possibility of recession. Consumer spending was
inhibited last year by the slow rate of new job creation, sluggish growth in
wages and salaries and the continued trend of corporate cost-related layoffs.
The lethargic pace of consumer spending last year culminated in one of the
worst holiday sales periods since the business slump in 1990-1991, despite
steep price markdowns by retailers.
Industrial production climbed modestly during the year. By November,the
nation's factories operated at only 83.1% of capacity, down for the third
consecutive month. This was a reflection of weakening demand and further
evidence of the diminishing pressure to raise prices. Furthermore,
inventories built up by year-end, another sign of slackening demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, reductions in annually appropriated
spending will tend to retard the economy. With an agreement, the combination
of cuts in appropriations and other spending reductions should have the same
effect.
There are strong indications that inflation is under control. Until
mid-year 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
MARKET ENVIRONMENT
In addition to the impact on the short-term municipal market of action
taken by the Fed, technical factors (i.e., supply/demand) contributed to a
significant strengthening of market conditions in late June and early July.
Demand exceeded supply during this time and short-term yields on municipal
issues dropped accordingly.
In the fall, rates on short-term issues settled into a trading range.
However, a steady interchange of variable rate demand notes (VRDNs) between
corporate holders and municipal money market funds kept rates on these
securities attractive, which resulted in an inverted yield curve (rates on
shorter maturities were higher than rates on longer issues) during most of
the season. Despite the year's second easing move by the Fed in early
December, rates on VRDNs trended even higher toward year-end. This is a
seasonal occurrence which (as prior years have demonstrated) reverses
dramatically in January as cash returns to the money market arena. The
"January effect" leads to a high increase in demand for VRDNs and,
accordingly, a substantial drop in yield on the issues as well.
THE PORTFOLIO
With the inverted yield curve, daily and weekly demand notes yielded
moderately more than both commercial paper and notes through most of the
period. Our investment strategy involved lengthening the portfolio's
maturity, where possible, in order to lock in rates that we felt would
outperform variable rate notes early in 1996.
The commercial paper and one-year note markets provided the means for us
to extend your Fund's maturity. However, our success in achieving the desired
average maturity was somewhat limited due to a dearth of high quality issues
from which to choose. As a result, your Fund's current average maturity still
leaves room to extend further should a change in market or supply conditions
warrant.
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
January 16, 1996
New York, N.Y.
*Effective yield is based upon dividends declared daily and reinvested
monthly.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
__________ __________
<S> <C> <C>
COLORADO-6.8%
Colorado General Fund, Revenue, TRAN 4.50%, Series A, 6/27/96............... $10,000,000 $10,039,888
Colorado Student Obligation Bond Authority, Student Loan Revenue, VRDN
5.20%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 4,400,000 4,400,000
DELAWARE-2.3%
Delaware Economic Development Authority, Revenue, VRDN
(Hospital Billing Collection)
5.25%, Series C (Insured; MBIA) (b)..................................... 5,000,000 5,000,000
HAWAII-3.2%
Honolulu City and County, MFHR, VRDN (HaleKua Gardens Project)
5.70%, Series A (LOC; Bank of Tokyo) (a,b).............................. 6,891,000 6,891,000
IDAHO-2.4%
State of Idaho, TAN 4.50%, 6/27/96.......................................... 5,000,000 5,016,404
ILLINOIS-4.7%
City of Fulton, Solid Waste Disposal Facilities, Revenue (CGE Fulton Project)
3.85%, 1/11/96 (Escrowed in; U.S. Treasury Bills)....................... 8,000,000 8,000,000
West Chicago, IDR, VRDN (Acme Printing Ink Project)
5.50% (LOC; Bank of Tokyo) (a,b)........................................ 2,000,000 2,000,000
IOWA-4.2%
Iowa Finance Authority, SWDR, VRDN (Cedar River Paper Co. Project)
6.10%, Series A (LOC; Swiss Bank Corp.) (a,b)........................... 9,000,000 9,000,000
KENTUCKY-.7%
Boone County, IDR, VRDN (Curtin Matheson Scientific Project)
5.30% (LOC; Barclays Bank) (a,b)........................................ 1,500,000 1,500,000
LOUISIANA-11.0%
New Orleans Aviation Board, Revenue, VRDN (Passenger Facility Charge
Projects)
5.50% (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)
5.15% (Corp. Guaranty; British Petroleum) (b)........................... 5,500,000 5,500,000
Saint Charles Parish, PCR, VRDN (Shell Oil Co. Project) 5.10%, Series A (b). 3,400,000 3,400,000
West Baton Rouge Parish Industrial District #3, Revenue, VRDN
(Dow Chemical Co. Project)
5.25%, Series A (LOC; Dow Chemical) (a,b)............................... 4,700,000 4,700,000
MASSACHUSETTS-1.7%
Massachusetts Housing Finance Agency, SFHR 4.15%, 6/1/96 (GIC; FGIC)........ 3,600,000 3,600,000
MICHIGAN-.9%
Michigan Higher Education Student Loan Authority, Revenue, VRDN
5.40%, Series XII-F (Insured; AMBAC and Liquidity Agreement; Sumitomo
Bank) (b)................................................................... 2,000,000 2,000,000
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
MINNESOTA-2.6%
Minnesota Housing Finance Agency, Single Family Mortgage
5.25%, Series F, 1/16/96 (GIC; Bayerische Landesbank)................... $5,530,000 $5,530,000
MISSOURI-6.6%
Mexico Industrial Development Authority, Industrial Revenue, VRDN
(Optec DD USA Inc. Project) 5.225% (LOC; Industrial Bank of Japan) (a,b) 1,000,000 1,000,000
Missouri Environmental Improvement and Energy Resource Authority, PCR
(Union Electric Co.) 3.25%, Series A, 6/1/96 (LOC; Swiss Bank Corp.) (a) 6,500,000 6,500,000
Missouri Higher Education Loan Authority, Student Loan Revenue, Refunding,
VRDN
5.10%, Series B (Insured; MBIA and Liquidity Facility; Internationale
Nederlanden Bank) (b)................................................... 6,500,000 6,500,000
NEW JERSEY-7.9%
New Jersey Sports and Exposition Authority, VRDN
4.75% (Insured; MBIA and Liquidity Facility; Industrial Bank of Japan) (b) 7,000,000 7,000,000
State of New Jersey, CP 3.30%, 2/16/96 (LOC; Union Bank of Switzerland) (a). 10,000,000 10,000,000
NEW YORK-2.3%
New York City Municipal Water Finance Authority, Water and Sewer Systems Revenue, CP
3.55%, 1/25/96 (LOC; Canadian Imperial Bank of Commerce) (a)............ 5,000,000 5,000,000
NORTH CAROLINA-4.5%
Craven County Industrial Facilities and Pollution Control Financing
Authority, VRDN
(Craven Wood Energy):
5.05%, Series B (LOC; ABN-Amro Bank) (a,b)............................ 4,600,000 4,600,000
5.05%, Series C (LOC; Mitsubishi Bank) (a,b).......................... 5,000,000 5,000,000
OHIO-2.2%
Montgomery County, IDR, VRDN (Modern Industrial Plastics Project)
5.375% (LOC; Industrial Bank of Japan) (a,b)............................ 1,000,000 1,000,000
Piqua, IDR, VRDN (Berwick Steel Co. Project) 5.10%, (LOC; Sanwa Bank) (a,b). 3,800,000 3,800,000
RHODE ISLAND-4.7%
State of Rhode Island, TAN 4.50%, 6/28/96 (LOC; Union Bank of Switzerland) (a) 10,000,000 10,037,950
TEXAS-21.9%
Brazos River Harbor Naval District, Harbor Revenue, VRDN
(Dow Chemical Co. Project) 5.25% (Corp. Guaranty; Dow Chemical) (b)..... 4,000,000 4,000,000
Greater East Texas Higher Education Authority Inc., Student Loan Revenue,
VRDN:
5.15%, Series B (LOC; Student Loan Marketing Association) (a,b)......... 10,000,000 10,000,000
5.25%, Series B (LOC; Student Loan Marketing Association) (a,b)......... 3,000,000 3,000,000
Gulf Coast Industrial Development Authority, SWDR, VRDN
(Citgo Petroleum Corp. Project) 5.20% (LOC; Nations Bank of Texas) (a,b) 7,100,000 7,100,000
Gulf Coast Waste Disposal Authority, SWDR, VRDN (Amoco Oil Co. Project)
5.10% (LOC; Amoco Credit Corp.) (a,b)................................... 8,100,000 8,100,000
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
TEXAS (CONTINUED)
Harris County Industrial Development Corporation, PCR, VRDN (Exxon Corp. Project)
5.10%, (Corp. Guaranty; Exxon Corp.) (b)................................ $4,100,000 $4,100,000
Houston, Water and Sewer System Revenue, CP
3.80%, Series A, 2/20/96 (Liquidity Facility: Swiss Bank Corp. and
West Deutsche Landesbank)............................................... 4,000,000 4,000,000
Panhandle-Plains Higher Education Authority Inc., Student Loan Revenue, VRDN
5.20%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 4,000,000 4,000,000
San Antonio Housing Finance Corporation, VRDN (Sunrise Apartments Project)
5.25% (LOC; Swiss Bank Corp.) (a,b)..................................... 2,500,000 2,500,000
VERMONT-2.0%
Vermont Industrial Development Authority, IDR, VRDN (Ryegate Project)
5.10% (LOC; ABN-Amro Bank) (a,b)........................................ 4,300,000 4,300,000
VIRGINIA-2.7%
Charles City and County Industrial Development Authority, Exempt Facility
Revenue,
VRDN (Chambers Development Virginia Inc. Project)
5.25% (LOC; North Carolina National Bank) (a,b)......................... 4,200,000 4,200,000
Chesapeake Industrial Development Authority, IDR, VRDN (Sumitomo Mach Co.)
5.225% (LOC; Sumitomo Bank) (a,b)....................................... 1,500,000 1,500,000
WISCONSIN-4.7%
State of Wisconsin, Operating Notes 4.50%, 6/17/96.......................... 10,000,000 10,037,667
-----------
TOTAL INVESTMENTS (cost $213,852,909)....................................... $213,852,909
=============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
CP Commercial Paper PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company SFHR Single Family Housing Revenue
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
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ----------- ------------------ --------------------
<S> <C> <S> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 96.3%
Not Rated (e) Not Rated (e) Not Rated (e) 3.7
_______
100.0%
========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit. At December 31, 1995, 60.0% of the
Fund's net assets are backed by letters of credit issued by domestic
banks, foreign banks, corporations and government agencies.
(b) 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.
(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) 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>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $213,852,909
Cash.................................................................... 1,328,241
Interest receivable..................................................... 1,752,549
Prepaid expenses........................................................ 16,370
------------
216,950,069
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $41,763
Due to Distributor...................................................... 3,065 44,828
------- -------------
NET ASSETS ................................................................ $216,905,241
=============
REPRESENTED BY:
Paid-in capital......................................................... $217,061,764
Accumulated net realized (loss) on investments.......................... (156,523)
-------------
NET ASSETS at value......................................................... $216,905,241
=============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 194,242,699
============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 22,819,065
=============
NET ASSET VALUE per share:
Class A Shares
($194,088,218 / 194,242,699 shares)................................... $1.00
=====
Class B Shares
($22,817,023 / 22,819,065 shares)..................................... $1.00
=====
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $9,174,795
EXPENSES:
Management fee-Note 2(a).............................................. $461,349
Distribution fees (Class B shares)-Note 2(b).......................... 24,719
--------
TOTAL EXPENSES.................................................... 486,068
----------
INVESTMENT INCOME-NET....................................................... 8,688,727
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (12,665)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $8,676,062
===========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-------------------------------
1994 1995
---------- -----------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 8,090,433 $ 8,688,727
Net realized (loss) on investments................................ (143,858) (12,665)
------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 7,946,575 8,676,062
------------ -----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................. (7,957,559) (8,341,265)
Class B shares.................................................. (132,874) (347,462)
----------- -----------
TOTAL DIVIDENDS............................................. (8,090,433) (8,688,727)
----------- -----------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.................................................. 3,749,958,726 2,507,919,735
Class B shares.................................................. 129,706,391 178,387,472
Dividends reinvested:
Class A shares.................................................. 6,736,334 7,895,480
Class B shares.................................................. 124,735 318,497
Cost of shares redeemed:
Class A shares.................................................. (3,928,426,717) (2,514,424,708)
Class B shares.................................................. (128,420,059) (157,298,474)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS..................................... (170,320,590) 22,798,002
------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS................... (170,464,448) 22,785,337
NET ASSETS:
Beginning of year................................................. 364,584,352 194,119,904
----------- -----------
End of year....................................................... $194,119,904 $ 216,905,241
============ =============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
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.
CLASS A SHARES CLASS B SHARES
-------------------------------------------------- -----------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
-------------------------------------------------- -----------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 1993(1) 1994 1995
----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.............. $ 1.00 $ 1.00 $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
INVESTMENT OPERATIONS;
Investment income-net.. .047 .031 .024 .027 .038 .005 .025 .035
----- ----- ----- ----- ----- ----- ----- -----
DISTRIBUTIONS;
Dividends from investment
income-net........... (.047) (.031) (.024) (.027) (.038) (.005) (.025) (.035)
----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of year $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $ 1.00
======= ======= ======= ====== ======= ======= ======= =======
TOTAL INVESTMENT RETURN.... 4.75% 3.16% 2.44% 2.76% 3.85% 2.12%(2) 2.51% 3.60%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets.......... .20% .20% .20% .20% .20% .45%(2) .45% .45%
Ratio of net investment income
to average net assets....... 4.54% 3.04% 2.40% 2.62% 3.78% 2.14%(2) 2.43% 3.51%
Decrease reflected in above
expense ratios due to
undertakings by
the Manager.......... .33% .10% .07% _ _ _ _ _
Net Assets, end of year
(000's Omitted)...... $151,085 $259,416 $364,583 $192,710 $194,088 $1 $1,410 $22,817
(1) From September 30, 1993 (commencement of initial offering) to December 31, 1993.
(2) 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. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales load. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
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, 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
carryover, 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 $157,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1995. If not
applied, $144,000 of the carryover expires in fiscal 2002 and $13,000 of the
carryover expires in fiscal 2003.
At December 31, 1995, 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.
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.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $88 for the period from December
1, 1995 through December 31, 1995.
(B) Under the Service Plan ("Class B Service 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 fee in respect of the Fund's Class B shares owned by 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 year ended
December 31, 1995, $24,719 was charged to the Fund pursuant to the Class B
Service 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 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, 1995, 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, 1995 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, 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, 1995, 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 LLP signature logo]
New York, New York
January 31, 1996
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
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, 1995 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
DREYFUS TRANSFER, INC.
ONE AMERICAN EXPRESS PLAZA
PROVIDENCE, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 132/676AR9512
DREYFUS
MUNICIPAL
CASH
MANAGEMENT
PLUS
ANNUAL REPORT
DECEMBER 31, 1995
