SEMI-ANNUAL REPORT
JUNE 30, 1996
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 semi-annual reporting period ended June 30, 1996,
your Fund's Class A shares produced an annualized yield of 3.37%, and Class B
shares generated a 3.13% annualized yield. Income dividends of approximately
$.017 per share were paid during the period for Class A shares, and $.016 for
Class B shares. Reinvesting these dividends and calculating the effect of
compounding resulted in annualized effective yields of 3.42% and 3.17% 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
State and local taxes and the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
THE ECONOMY
Over the reporting period, reports of solid economic growth, low
inflation and strong gains in employment have been accompanied by fears that
the Federal Reserve Board will raise short-term interest rates to ward off
any resurgence in inflation. Yet, there seem to be few signs of inflation.
Commodity and producer prices remain subdued. Another measure of potential
inflation, delivery lead times - one of Chairman Greenspan's favorite
indicators - has been little changed for months. Some of the inflationary
consequences of running large budget deficits have eased. Higher than
expected tax payments - a result of economic growth - have reduced the
Federal budget deficit to the $130 billion level, the lowest since the early
1980s.
To date, the Federal Reserve has refrained from any overt tightening. The
Federal Funds Rate has been held steady at 5.25% since January 31, 1996. On
June 19, the Fed's Beige Book, a survey of business conditions in the 12
districts of the Federal Reserve, reported that the economy was growing at a
moderate pace and that, despite the tightening labor markets, "indications of
rising wages remain scattered." Recent statements by officials of the Federal
Reserve Board have suggested that "sustained moderate growth" is the most
likely path for the economy, and that labor markets do not yet indicate
significant inflationary pressures.
MARKET ENVIRONMENT/PORTFOLIO
If one were to trace the trend in short-term municipal rates over this
most recent semi-annual period, the direction would mirror closely the
changes in supply and demand conditions. The six-month cycle would reflect:
higher rates at year-end due to December outflows, a precipitous drop in
yields throughout January as cash returned to the market, price
weakness/higher rates in April as investors tapped their money market funds
to pay income taxes, and market strength in late June and early July as $9
billion in note maturities left the market. These technical influences
continue to be the overriding factor affecting municipal money rates.
These conditions, coupled with action(s) taken by the Federal Reserve
Board, provide the framework for our investment strategy - both on a
day-to-day basis and looking ahead over a one-year horizon. During the first
few months of 1996, as a result of uncertainty surrounding potential tax
reform, variable rate demand notes (which represent a significant portion of
your Portfolio's investments) benefited from unusually high yields. While the
concerns were only temporary, they translated for a time into a more
attractive after-tax
rate of return than was available to the tax-exempt investor on taxable
instruments with similar maturities. During this period, the purchase of
commercial paper with attractive yields in the 90-day range also allowed us
to capture returns similar to those on one-year issues without a significant
extension of average maturity. This enabled us to wait out a lower yield
environment in anticipation of higher rates.
The opportunity to commit to the longer note issues has appeared in
recent weeks and should continue to be available during the remaining summer
months as issuers return to the market with midyear financings. We have, to
some extent, participated in these offerings which resulted in an extension
of your Fund's average maturity to the 65-day range. We will take advantage
of any additional buying opportunities as we monitor potential Fed activity
and any other significant changes in the municipal money market. All new
investments will continue to meet the high credit quality standards which we
require and to provide a significant level of liquidity, commensurate with
the needs of your Fund.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
July 15, 1996
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
ALABAMA-4.1%
Phenix City Industrial Development Board, Environmental Improvement Revenue, VRDN
(Mead Coated Board Project) 3.95% (LOC; Sumitomo Bank) (a,b)............ $ 10,000,000 $10,000,000
ALASKA-3.2%
Valdez, Marine Terminal Revenue, VRDN (Exxon Pipeline Co. Project)
3.55% (Corp. Guaranty; Exxon Corp.) (b)................................. 7,800,000 7,800,000
CALIFORNIA-4.3%
California Higher Education Loan Authority Inc., Student Loan Revenue
3.75%, Series C, 6/1/97 (LOC; Student Loan Marketing Association) (a)... 5,500,000 5,500,000
California School Cash Reserves Program Authority
4.75%, Series A, 7/2/97 (Insured; MBIA)................................. 5,000,000 5,043,200
COLORADO-1.8%
Colorado Student Obligation Bond Authority, Student Loan Revenue, VRDN
3.40%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 4,400,000 4,400,000
DELAWARE-2.0%
Delaware Economic Development Authority, Revenue, VRDN (Hospital Billing Collection)
3.50%, Series C (Insured; MBIA) (b)..................................... 5,000,000 5,000,000
DISTRICT OF COLUMBIA-.9%
District of Columbia, General Fund Recovery, VRDN
3.75%, Series B-2 (LOC; Westdeutsche Landesbank) (a,b).................. 2,100,000 2,100,000
FLORIDA-2.1%
Pinellas County Housing Finance Authority, SFMR (Multi County Program)
3.352%, Series B, 3/1/97 (Insured; FGIC)................................ 5,250,000 5,250,000
HAWAII-2.8%
Honolulu City and County, MFHR, VRDN (HaleKua Gardens Project)
3.65%, Series A (LOC; Bank of Tokyo-Mitsubishi) (a,b)................... 6,891,000 6,891,000
ILLINOIS-9.1%
Illinois Health Facilities Authority, VRDN (Resurrection Health Care)
3.70% (LOC: Comerica Bank, First Chicago Bank, Lasalle National Bank and
National Bank of Delaware) (a,b)........................................ 20,400,000 20,400,000
West Chicago, IDR, VRDN (Acme Printing Ink Project)
3.925% (LOC; Bank of Tokyo-Mitsubishi) (a,b)............................ 2,000,000 2,000,000
INDIANA-6.7%
Indiana Bond Bank Reassessment Assistant Program:
4.041%, Series A, 1/30/97............................................... 4,000,000 4,008,450
4.417%, Series B, 1/30/97............................................... 4,410,000 4,424,995
Indiana Development Finance Authority, SWDR, CP (Pure Air on Lake Project)
4%, Series A, 7/15/96 (LOC; Fuji Bank) (a).............................. 8,000,000 8,000,000
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
KENTUCKY-.6%
Boone County, IDR, VRDN (Curtain Matheson Scientific Project)
3.70% (LOC; Barclays Bank) (a,b)........................................ $ 1,500,000 $ 1,500,000
LOUISIANA-8.3%
East Baton Rouge Mortgage Finance Authority, Single Family Mortgage, Refunding
3.40%, Series A, 10/3/96 (Escrowed in; U.S. Government Securities)...... 3,255,000 3,255,000
New Orleans Aviation Board, Revenue, VRDN (Passenger Facility Charge Projects)
3.45% (LOC: Banque Paribas and Canadian Imperial Bank of Commerce) (a,b) 9,000,000 9,000,000
Saint Charles Parish, PCR, VRDN (Shell Oil Co. Project)
3.80%, Series A (Corp. Guaranty; Shell Oil Co.) (b)..................... 3,400,000 3,400,000
West Baton Rouge Parish Industrial District #3, Revenue, VRDN
(Dow Chemical Co. Project) 3.80%, Series A (LOC; Dow Chemical Co.) (a,b) 4,700,000 4,700,000
MASSACHUSETTS-1.2%
State of Massachusetts 4.25%, Series A, 6/10/97............................. 3,000,000 3,009,496
MICHIGAN-8.8%
Michigan Building Authority, Revenue, CP
3.70%, Series 1, 8/28/96 (LOC; Canadian Imperial Bank of Commerce) (a).. 7,295,000 7,295,000
Michigan Higher Education Student Loan Authority, Revenue, VRDN
3.40%, Series XII-F (Insured; AMBAC and Liquidity Agreement; Sumitomo Bank) (b) 2,000,000 2,000,000
Michigan Underground Storage, CP
3.65%, 7/17/96 (LOC; Canadian Imperial Bank of Commerce) (a)............ 8,000,000 8,000,000
Midland County Economic Development Corporation, Economic Development, LOR,
VRDN (Dow Chemical Co. Project)
3.65%, Series A (Corp. Guaranty; Dow Chemical Co.) (b).................. 4,300,000 4,300,000
MISSOURI-5.7%
Mexico Industrial Development Authority, Industrial Revenue, VRDN
(Optec DD USA Inc. Project) 3.825% (LOC; Industrial Bank of Japan) (a,b) 1,000,000 1,000,000
Missouri Environmental Improvement and Energy Resource Authority, PCR
(Union Electric Co.) 3.60%, Series A, 6/1/97 (LOC; Swiss Bank Corp.) (a) 6,500,000 6,500,000
Missouri Higher Education Loan Authority, Student Loan Revenue, Refunding, VRDN
3.50%, Series B (Insured; MBIA and Liquidity Facility; Internationale
Nederlanden Bank) (b)................................................... 6,500,000 6,500,000
MONTANA-1.6%
Forsyth, PCR, VRDN (Portland General Electric Co.)
3.75% (LOC; Banque Nationale de Paris) (a,b)............................ 4,000,000 4,000,000
NEVADA-4.1%
Clark County, IDR, Refunding, VRDN (Nevada Power Co. Project)
3.60%, Series B (LOC; Societe Generale) (a,b)........................... 10,000,000 10,000,000
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY-3.3%
Burlington County, BAN 4.25%, 4/24/97....................................... $ 2,000,000 $ 2,009,416
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
3%, Series D (Insured; FGIC and LOC; Societe Generale) (a,b)............ 6,000,000 6,000,000
NEW YORK-1.0%
Metropolitan Transportation Authority, Revenue, RAN
4.25%, Series A, 12/12/96............................................... 2,500,000 2,506,684
NORTH CAROLINA-3.7%
Craven County Industrial Facilities and Pollution Control Financing Authority, VRDN
(Craven Wood Energy):
3.75%, Series B (LOC; ABN-Amro Bank) (a,b)............................ 4,100,000 4,100,000
3.75%, Series C (LOC; Bank of Tokyo-Mitsubishi) (a,b)................. 5,000,000 5,000,000
OHIO-7.9%
Greene County, BAN 3.88%, 6/4/97............................................ 5,000,000 5,007,130
Ohio Housing Finance Agency, Mortgage Revenue 3.40%, Series A-3, 3/3/97..... 5,000,000 5,000,000
Piqua, IDR, VRDN (Berwick Steel Co. Project) 3.70%, (LOC; Sanwa Bank) (a,b). 3,900,000 3,900,000
Scioto County, Marine Terminal Facilities Revenue, Refunding, VRDN
(Norfolk Southern Corp. Project) 3.35% (b).............................. 5,600,000 5,600,000
RHODE ISLAND-1.9%
Rhode Island Housing and Mortgage Finance Corporation, (Homeownership)
3.55%, Series 19D, 1/30/97 (LOC; Societe Generale) (a).................. 4,600,000 4,600,000
TEXAS-10.8%
Greater East Texas Higher Education Authority Inc., Student Loan Revenue, VRDN
3.50%, Series B (LOC; Student Loan Marketing Association) (a,b)......... 3,000,000 3,000,000
Gulf Coast Waste Disposal Authority, SWDR, VRDN (Amoco Oil Co. Project)
3.80% (Corp. Guaranty: Amoco Credit Corp.) (b).......................... 13,100,000 13,100,000
Harris County Industrial Development Corporation, PCR, VRDN (Exxon Corp. Project)
3.80%, (Corp. Guaranty; Exxon Corp.) (b)................................ 4,100,000 4,100,000
Panhandle-Plains Higher Education Authority Inc., Student Loan Revenue, VRDN
3.40%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 4,000,000 4,000,000
San Antonio Housing Finance Corporation, VRDN (Sunrise Apartments Project)
3.45% (LOC; Swiss Bank Corp.) (a,b)..................................... 2,500,000 2,500,000
VERMONT-1.8%
Vermont Industrial Development Authority, IDR, VRDN (Ryegate Project)
3.50% (LOC; ABN-Amro Bank) (a,b)........................................ 4,300,000 4,300,000
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
VIRGINIA-2.3%
Charles City and County Industrial Development Authority, Exempt Facility Revenue
VRDN (Chambers Development Inc., Project)
3.75%, (LOC; North Carolina National Bank) (a,b)........................ $ 4,200,000 $ 4,200,000
Chesapeake Industrial Development Authority, IDR, VRDN (Sumitomo Mach Co.)
3.825% (LOC; Sumitomo Bank) (a,b)....................................... 1,500,000 1,500,000
_____________
TOTAL INVESTMENTS (cost $245,700,371)....................................... $245,700,371
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
BAN Bond Anticicpation Notes Insurance Corporation
CP Commercial Paper MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
IDR Industrial Development Revenue RAN Revenue Anticipation Notes
LOC Letter of Credit SFMR Single Family Mortgage Revenue
LOR Limited Obligation Revenue SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
<S> <C> <C> <C>
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _______ _________________ _____________________
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 96.1%
F2 VMIG2/MIG2, P2 SP2, A2 1.0
Not Rated (e) Not Rated (e) Not Rated (e) 2.9
______
100.0%
=========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit. At June 30, 1996, 62.5% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks, government agencies and corporations.
(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 independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $245,700,371
Cash.................................................................... 5,394,380
Interest receivable..................................................... 986,680
Prepaid expenses........................................................ 1,644
_____________
252,083,075
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 40,471
Due to Distributor...................................................... 12,945
Payable for investment securities purchased............................. 5,043,200 5,096,616
______________ _____________
NET ASSETS.................................................................. $246,986,459
=============
REPRESENTED BY:
Paid-in capital......................................................... $247,149,544
Accumulated net realized (loss) on investments.......................... (163,085)
_____________
NET ASSETS at value......................................................... $246,986,459
=============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 170,642,655
=============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 76,506,889
=============
NET ASSET VALUE per share:
Class A Shares
($170,482,855 / 170,642,655 shares)................................... $1.00
========
Class B Shares
($76,503,604 / 76,506,889 shares)..................................... $1.00
========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $4,058,912
EXPENSES:
Management fee-Note 2(a).............................................. $226,240
Distribution fees (Class B shares)-Note 2(b).......................... 47,662
___________
TOTAL EXPENSES.................................................... 273,902
___________
INVESTMENT INCOME-NET....................................................... 3,785,010
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (6,562)
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $3,778,448
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
____________ _____________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 8,688,727 $ 3,785,010
Net realized (loss) on investments................................ (12,665) (6,562)
_______________ _______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 8,676,062 3,778,448
_______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................. (8,341,265) (3,182,850)
Class B shares.................................................. (347,462) (602,160)
_______________ _______________
TOTAL DIVIDENDS............................................. (8,688,727) (3,785,010)
_______________ _______________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.................................................. 2,507,919,735 884,212,254
Class B shares.................................................. 178,387,472 210,653,638
Dividends reinvested:
Class A shares.................................................. 7,895,480 3,023,014
Class B shares.................................................. 318,497 583,463
Cost of shares redeemed:
Class A shares.................................................. (2,514,424,708) (910,835,312)
Class B shares.................................................. (157,298,474) (157,549,277)
_______________ _______________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 22,798,002 30,087,780
_______________ _______________
TOTAL INCREASE IN NET ASSETS.............................. 22,785,337 30,081,218
NET ASSETS:
Beginning of period............................................... 194,119,904 216,905,241
_______________ _______________
End of period..................................................... $ 216,905,241 $ 246,986,459
================ ================
See independent accountants' review report and notes to financial statements.
</TABLE>
<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 period indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES
________________________________________________________________________
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1996
____________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
________ ________ ________ ________ ________ ___________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
________ ________ ________ ________ ________ ________
INVESTMENT OPERATIONS;
Investment income-net................. .047 .031 .024 .027 .038 .017
________ ________ ________ ________ ________ ________
DISTRIBUTIONS;
Dividends from investment income-net.. (.047) (.031) (.024) (.027) (.038) (.017)
________ ________ ________ ________ ________ ________
Net asset value, end of period........ $ 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% 3.39%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .20% .20% .20% .20% .20% .20%*
Ratio of net investment income to
average net assets.................. 4.54% 3.04% 2.40% 2.62% 3.78% 3.37%*
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .33% .10% .07% - - -
Net Assets, end of period (000's Omitted) $151,085 $259,416 $364,583 $192,710 $194,088 $170,483
* Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
CLASS B SHARES
______________________________________________________
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
_________________________________ JUNE 30, 1996
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
______ ______ ______ __________
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ _______
INVESTMENT OPERATIONS;
Investment income-net............................. .005 .025 .035 .016
______ ______ ______ _______
DISTRIBUTIONS;
Dividends from investment income-net.............. (.005) (.025) (.035) (.016)
______ ______ ______ _______
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ========
TOTAL INVESTMENT RETURN............................... 2.12%(2) 2.51% 3.60% 3.15%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .45%(2) .45% .45% .45%(2)
Ratio of net investment income to average net assets 2.14%(2) 2.43% 3.51% 3.15%(2)
Net Assets, end of period (000's Omitted)......... $1 $1,410 $22,817 $76,504
(1) From September 30, 1993 (commencement of initial offering) to December 31, 1993.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Municipal Cash Management Plus (the "Fund") is registered under
the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company. The Fund's investment objective is to provide
investors with as high a level of current income exempt from Federal income
tax as is consistent with the preservation of capital and the maintenance of
liquidity. The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold without a sales load. The
Fund offers both Class A and Class B shares. Class B shares are subject to a
Service Plan adopted pursuant to Rule 12b-1 under the Act. Other differences
between the two Classes include the services offered to and the expenses
borne by each Class and certain voting rights.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and original issue discounts on investments, is
earned from settlement date and recognized on the accrual basis. Realized
gain and loss from securities transactions are recorded on the identified
cost basis. Cost of investments represents amortized cost.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
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 June 30, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 value
of the Fund's average daily net assets and is payable monthly.
Unless the Manager gives the Fund's investors 90 days notice to the
contrary, the Manager and not the Fund, will be liable for Fund expenses
(exclusive of taxes, brokerage, interest on borrowings and, with the prior
written consent of the necessary state securities commissions, extraordinary
expenses) other than the following expenses, which will be borne by the Fund:
the management fee, and with the respect to the Fund's Class B shares, Rule
12b-1 Service Plan expenses.
(B) Under the Class B Service Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund (a) reimburses the Distributor for distributing
the Fund's Class B shares and (b) pays the Manager and Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager and their affiliates
(collectively, "Dreyfus") for advertising and marketing relating to the
Fund's Class B shares and for providing certain services relating to Class B
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts ("Servicing"), at an aggregate annual
rate of .25 of 1% of the value of the average daily net assets of Class B.
Both the Distributor and Dreyfus may pay one or more Service Agents ( a
securities dealer, financial institution or other industry professional) a
fee in respect of the Fund's Class B shares owned by the shareholders with
whom the Service Agent has a Servicing relationship or for whom the Service
Agent is the dealer or holder of record. Both the Distributor and Dreyfus
determine the amounts, if any, to be paid to the Service Agents under the
Plan and the basis on which such payments are made. The fees payable under
the Plan are payable without regard to actual expenses incurred. During the
six months ended June 30, 1996, $47,662 was charged to the Fund pursuant to
the Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives an annual fee of $3,000 and an attendance fee of $500 per meeting.
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MUNICIPAL CASH MANAGEMENT PLUS
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Municipal Cash Management Plus, including the statement of
investments, as of June 30, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended June 30, 1996. These financial statements and financial highlights are
the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modification that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepting
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated January 31, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
July 31, 1996
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.
P.O. BOX 9671
PROVIDENCE, RI 02940
Printed in U.S.A. 132/676SA966
DREYFUS
MUNICIPAL
CASH
MANAGEMENT
PLUS
