CMA
CMA Ohio
Municipal Money Fund
Semi-Annual Report
September 30, 1994
Merrill Lynch Bull Logo
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.
CMA Ohio
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
<PAGE>
TO OUR SHAREHOLDERS:
For the six month period ended September 30, 1994, CMA Ohio
Municipal Money Fund paid shareholders a net annualized yield of
2.19%*. As of September 30, 1994, the Fund's 7-day yield was 2.73%.
The Environment
Concerns of increasing inflationary pressures continued to prompt
volatility in the US stock and bond markets during the July--
September period. In addition, the weakness of the US dollar in
foreign exchange markets caused intermittent stock and bond market
declines during the period. While the immediate concerns regarding
the US dollar had diminished by late July, the possibility of
continued tightening by the Federal Reserve Board persisted for most
of the period. However, a lower-than-expected rate of growth
reported for the US economy during the second calendar quarter
allayed inflationary concerns to some degree, despite the fifth
increase this year in short-term interest rates made by the central
bank in mid-August. Inflationary expectations surfaced again with
the announcement of significant upward revision in industrial
production and capacity utilization for the May--July period. When
the central bank did not raise short-term interest rates at the late
September Federal Open Market Committee meeting, financial markets
rallied on the expectation that the US economy was not overheating
and therefore significant further monetary policy tightening would
not be necessary.
Despite the stronger-than-expected industrial production results,
other economic data suggest that while the economic recovery is
continuing, it is losing some momentum. Consumer spending is
increasing, but at a relatively slow pace, and existing home sales
may have peaked. Inflation remains subdued at the retail level. In
the industrial sector, the sharp increase in manufacturing
production in August was largely the result of a strong increase in
motor vehicle assemblies, which may level off in the weeks ahead. On
balance, it appears that the growth in US industry is progressing at
a steady, modest rate.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
<PAGE>
Despite evidence of a moderating trend in the US economy, Chairman
Greenspan indicated in his July Humphrey-Hawkins testimony that the
central bank would prefer to err on the side of too much monetary
tightening rather than too little. In the weeks ahead, investors
will continue to assess economic data and inflationary trends in
order to gauge whether further increases in short-term interest
rates are imminent. Continued indications of moderate and
sustainable levels of economic growth would be positive for the US
capital markets.
Investment Outlook and Strategy
During the six-month period ended September 30, 1994, the US economy
continued to surprise the marketplace with its resiliency.
Manufacturing provided a strong catalyst for growth, and continued
strength in housing and automobile sales also provided the impetus
for the Federal Reserve Board to continue the restrictive monetary
policy initiated in February. This was accomplished by raising the
Federal Funds rate by 25 basis points (0.25%) to 3.75% in April,
with more aggressive 50 basis point increases in May and August to
its current rate of 4.75%. In addition, the Federal Reserve Board
raised the discount rate by 50 basis points in both May and August.
Additionally, during the period the yield on the one-year US
Treasury bill rose approximately 155 points to 5.95% by September
30, 1994.
Economic growth in the State of Ohio continued at a strong pace
during the six months ended September 30, 1994. Efforts to diversify
the State's economic base into trade and service sectors continued
unabated with positive results. In addition, the manufacturing
sector, led by automobile production, has been a stellar performer
during the current national expansion. The auto manufacturers
continued to record profits restricted only by capacity limitations
and seasonal plant closings. Employment, a beneficiary of the
economic growth, has been a positive for the State with the
seasonally adjusted unemployment rate at 5.5%, slightly below the
national average of 5.9% for September 1994. However, future
economic growth remains a question as the Federal Reserve Board
continues to increase short-term interest rates to quell
inflationary pressures.
Positive economic growth combined with prudent fiscal management by
the Voinovich Administration enabled the State to finish the 1994
fiscal year with a general fund balance of $560 million. This
allowed the State to replenish its budget stabilization (or rainy
day) fund with $260 million. For the first quarter of fiscal year
1995, tax receipts are running slightly ahead of 1994, but slightly
below original budget estimates. Positive economic conditions
translating into positive revenue flows enabled the State to manage
daily operations without the need to borrow in the short-term
market. The various Ohio municipalities, however, increased their
short-term issuance approximately 124% to a modest $464 million over
the comparable period last year, the majority of which continued to
be issued with one-year maturities. Yields on AA-rated one-year
notes increased from the 3.40% range at the beginning of the period
to the 4.20% range at the end of the period. This large increase is
primarily the result of the Federal Reserve Board's continued
efforts to curtail economic growth and contain inflationary
pressures by tightening monetary policy.
<PAGE>
CMA Ohio Municipal Money Fund maintained a somewhat defensive
strategy during the six months ended September 30, 1994, as the
Federal Reserve Board continued to increase short-term interest
rates. The average maturity of the Fund fluctuated in the 55-day
range for the majority of the period. Maturing one-year short-term
municipal notes were replaced with a combination of variable rate
demand notes and tax-exempt commercial paper. In addition, we
purchased short-term municipal notes at attractive yields for
diversification needs as issuance became available. We continue to
closely monitor credit quality while seeking to offer shareholders
an attractive tax-exempt yield.
In Conclusion
We thank you for your support of CMA Ohio Municipal Money Fund, and
we look forward to serving your investment needs in the future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
October 25, 1994
Portfolio Abbreviations for CMA Ohio Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
HFA Housing Finance Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
TRAN Tax Revenue Anticipation Notes
UPDATES Unit Price Daily Adjustable Tax-Exempt
Securities
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio--100.6% $ 2,250 Akron, Ohio, Sanitation Sewer System Improvement Notes, 3.63%
due 10/13/1994 $ 2,250
7,700 Black River, Ohio, Local School District, BAN, 4.02% due 12/02/1994 7,706
635 Brooklyn Heights, Ohio, IDR (ATC Nymold Inc.), VRDN,
AMT, 3.95% due 2/01/2002 (a) 635
2,870 Butler County, Ohio, BAN, 3.63% due 10/28/1994 2,871
1,800 Cincinnati and Hamilton Counties, Ohio, Port Authority Economic
Development Revenue Bonds (Kenwood Office Association
Project), VRDN, 3.95% due 9/01/2025 (a) 1,800
500 Cincinnati and Hamilton Counties, Ohio, Port Authority, IDR, Refunding
(Schottenstein Stores), VRDN, 3.70% due 9/01/1997 (a) 500
Cincinnati, Ohio, Student Loan Funding Corporation, Student Loan Revenue
Bonds, VRDN, AMT (a):
1,500 Series A-1, 3.70% due 1/01/2007 1,500
1,500 Series A-3, 3.70% due 1/01/2007 1,500
2,700 Clermont County, Ohio, IDR (Southern Ohio Fabricator), VRDN, AMT,
Series A, 3.85% due 9/01/2005 (a) 2,700
3,750 Cleveland, Ohio, City School District, TRAN, 4.50% due 12/30/1994 3,763
5,000 Cleveland, Ohio, Public Power System Revenue Bonds, BAN, 2.51%
due 12/29/1994 5,008
2,000 Clinton County, Ohio, Airport Facilities Revenue Refunding Bonds
(Wilmington Air Park, Inc.), VRDN, 3.75% due 6/01/2011 (a) 2,000
5,500 Cuyahoga County, Ohio, Hospital Improvement Revenue Bonds (Cleveland
University Hospital), VRDN, 3.80% due 1/01/2016 (a) 5,500
1,000 Cuyahoga County, Ohio, IDR (Allen Group Incorporated Project),
VRDN, 3.50% due 12/01/2015 (a) 1,000
4,200 Cuyahoga County, Ohio, IDR (Cleveland E Excel Ltd.), VRDN, AMT, 3.95%
due 3/01/2019 (a) 4,200
1,770 Dawson-Bryant, Ohio, Local School District Construction and Improvement
Notes, 4.25% due 6/01/1995 1,773
5,300 Dayton, Ohio, Airport Improvement, BAN, AMT, 2.90% due 10/25/1994 5,300
1,000 Dayton, Ohio, Special Facilities Revenue Bonds (Emery Air Freight Project),
VRDN, AMT, Series D, 4.10% due 10/01/2009 (a) 1,000
500 Erie County, Ohio, IDR (Brighton Manor Company Project), VRDN, AMT,
3.65% due 11/01/2016 (a) 500
1,915 Erie County, Ohio, IDR, Refunding (Huron Health Care Center Project),
<PAGE> VRDN, 3.70% due 8/01/2007 (a) 1,915
1,500 Fairfield County, Ohio, BAN, 3.15% due 10/28/1994 1,501
4,400 Franklin County, Ohio, Health System Revenue Bonds (Franciscan Sister-
Saint Anthony Medical Facility), VRDN, Series B, 3.80% due 7/01/2015 (a) 4,400
Franklin County, Ohio, Hospital Revenue Bonds, VRDN (a):
5,500 (Children's Hospital Project), Series B, 3.80% due 12/01/2014 5,500
1,000 (Lutheran Senior City Inc. Project), 3.75% due 5/01/2015 1,000
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 1,000 Franklin County, Ohio, IDR (Inland Products Inc. Project), VRDN, 3.85%
(continued) due 8/01/2004 (a) $ 1,000
Franklin County, Ohio, IDR, VRDN, AMT (a):
3,100 Refunding (Grant Medical Center Project), 3.65% due 12/01/1994 3,100
2,855 Refunding (Heekin Can Inc. Project), 3.65% due 12/01/1994 2,855
2,500 Refunding (Heekin Can Inc. Project), 3.85% due 5/01/2007 2,500
2,000 (Tigeropoly Manufacturing, Inc.), 3.75% due 7/01/1997 2,000
3,000 Greene County, Ohio, Certificates of Indebtedness, Series B, 4.25%
due 7/19/1995 3,005
3,400 Greene County, Ohio, IDR, Refunding (Apple Valley Association), VRDN,
3.20% due 8/01/2009 (a) 3,400
6,200 Hamilton County, Ohio, Health Care Systems Revenue Bonds (Franciscan
Sister Poor Health), VRDN, Series A, 3.80% due 3/01/2017 (a) 6,200
3,000 Lorain County, Ohio, BAN, 3% due 2/10/1995 3,003
2,000 Lucas County, Ohio, BAN, Series 2, 3.60% due 12/15/1994 2,002
Marion County, Ohio, Hospital Improvement Revenue Bonds
(Pooled Lease Program):
2,435 3% due 10/01/1994 2,435
1,615 VRDN, 3.70% due 5/01/2019 (a) 1,615
3,500 Mentor, Ohio, IDR (Metcor Partnership/Tridelt), VRDN, AMT,
3.95% due 12/01/2008 (a) 3,500
3,680 Morrow County, Ohio, BAN (Detention Facilities), 4.20% due 6/01/1995 3,689
2,455 Ohio HFA, M/F Housing Revenue Bonds (Kenwood Congregate
Retirement Program), VRDN, 3% due 12/01/2015 (a) 2,455
600 Ohio HFA, S/F Mortgage Revenue Bonds, AMT, Series A-2, 3.40% due 12/01/1994 600
2,500 Ohio State Air Quality Development Authority, Pollution Control
Facilities, PCR (Duquesne Light), CP, AMT, 3.30% due 11/18/1994 2,500
Ohio State Air Quality Development Authority Revenue Bonds (a):
400 (Honda America Manufacturing), VRDN, 3.40% due 1/01/1997 400
1,600 (JMG Funding L.P. Project), UPDATES, AMT, Series A,
3.75% due 10/01/2027 1,600
2,000 (JMG Funding L.P. Project), UPDATES, AMT, Series B,
<PAGE> 3.85% due 10/01/2027 2,000
1,115 Ohio State Coal Development, Series B, 5% due 8/01/1995 1,124
Ohio State Environmental Improvement Revenue Bonds, Ohio Water
Development (Mead Corporation Project), CP, AMT:
5,000 3.30% due 11/07/1994 5,000
1,000 3.30% due 11/08/1994 1,000
1,500 3.05% due 11/09/1994 1,500
1,500 3.05% due 11/29/1994 1,500
4,000 Ohio State Environmental Improvement Revenue Bonds (US Steel Corp.),
VRDN, 3.65% due 5/01/2011 (a) 4,000
500 Ohio State Environmental Water Development Authority Revenue Bonds
(Honda America), VRDN, 3.40% due 1/01/1997 (a) 500
3,400 Ohio State Higher Educational Facilities Revenue Bonds (Kenyon College
Project), VRDN, 3.70% due 4/01/2022 (a) 3,400
1,050 Ohio State PCR, Refunding (Alcoa Project), VRDN, 3.65% due 10/01/2000 (a) 1,050
2,100 Ohio State University, General Receipts, VRDN, Series B, 3.50% due 12/01/2012 (a) 2,100
3,000 Ohio State Water Development Authority, Pollution Control Facilities, PCR
(Duquesne Light), CP, 3.40% due 11/17/1994 3,000
Ohio State Water Development Authority, Pollution Control Facilities
Revenue Bonds:
3,000 (Duquesne Light Co. Project), CP, AMT, 3.50% due 11/17/1994 3,000
4,500 (Ohio Edison Co.), Series B, 4.25% due 3/01/1995 (a) 4,500
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 1,280 Ottoville, Ohio, Local School District Revenue Bonds, BAN, UT, 4.40% due
(concluded) 2/01/1995 $ 1,284
1,000 Paulding County, Ohio, IDR (Countrymark Cooperative Inc. Project),
VRDN, 3.80% due 8/01/1999 (a) 1,000
2,100 Portage County, Ohio, IDR (NCSP L.P. Project), VRDN, AMT, 4.15%
due 6/01/2014 (a) 2,100
3,000 Richland County, Ohio, BAN, 4.85% due 9/14/1995 3,016
1,800 Rickenbacker, Ohio, Port Authority, IDR, Refunding (Rickenbacker Holdings, Inc.),
VRDN, 3.70% due 12/01/2010 (a) 1,800
1,300 Sandusky County, Ohio, IDR (Brighton Manor Co. Project), VRDN, AMT, 3.65%
due 12/01/2016 (a) 1,300
Stark County, Ohio, BAN:
1,500 3.02% due 10/26/1994 1,501
1,010 3.15% due 12/09/1994 1,011
1,000 Summit County, Ohio, Hospital Facilities Revenue Bonds (Cuyahoga Falls
General Hospital), VRDN, Series B, 3.80% due 7/01/1999 (a) 1,000
Summit County, Ohio, IDR:
2,500 (American Laser Tech Inc. Project), VRDN, 4.15% due 3/01/2001 (a) 2,500
1,000 (Austin Printing Co. Inc. Project), VRDN, AMT, 4% due 8/01/2006 (a) 1,000
<PAGE> 845 (Lucerne Production Project), VRDN, AMT, 3.95% due 6/01/2002 (a) 845
800 (Struktol Project), VRDN, AMT, Series A, 3.95% due 6/01/2002 (a) 800
1,200 (Texler Inc. Project), AMT, 3.40% due 11/01/1994 1,200
1,400 Toledo Lucas County, Ohio, Port Authority, Development Revenue Bonds
(Frostbite Brands Inc. Project), VRDN, AMT, 4.30% due 12/01/2013 (a) 1,400
Toledo, Ohio, City Services Special Assessment Notes:
2,500 3.20% due 12/01/1994 (b) 2,501
1,700 Refunding, 4.15% due 6/01/1995 1,702
1,250 Troy, Ohio, Economic Development Revenue Bonds (L&CP Corporation Project),
AMT, 3.35% due 12/01/1994 1,250
University of Cincinnati, Ohio, General Receipts, BAN:
5,465 Series S, 4.75% due 8/30/1995 5,499
3,000 Series S1, 4% due 3/23/1995 3,011
1,960 Vermilion, Ohio, IDR, Refunding (Landover Properties Ltd.), VRDN,
3.65% due 10/01/2004 (a) 1,960
Warren County, Ohio, IDR, VRDN (a):
4,000 (Johnson & Hardin Enterprises), AMT, Series A, 3.85% due 2/01/2010 4,000
1,900 (Pioneer Industrial Components), 3.55% due 12/01/2005 1,900
1,000 Willoughby, Ohio, BAN, 4.19% due 8/16/1995 1,002
2,650 Willoughby, Ohio, IDR (Malish Brush & Specialty), VRDN, AMT, 3.95% due
6/01/2009 (a) 2,650
3,265 Wood County, Ohio, Economic Development Revenue Bonds (Great Lakes
Window Project), AMT, 3.75% due 12/01/1994 3,265
4,700 Zanesville-Muskingum County, Ohio, Port Authority, IDR (B.E. Products Inc.
Project), VRDN, AMT, 3.95% due 9/01/2004 (a) 4,700
Total Investments (Cost--$202,552*)--100.6% 202,552
Liabilities in Excess of Other Assets--(0.6%) (1,178)
--------
Net Assets--100.0% $201,374
========
<FN>
(a)The interest rate is subject to change periodically based on certain indexes.
The interest rate shown is the interest rate in effect at September 30, 1994.
(b)Escrowed to maturity.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1994
<S> <C> <C>
Assets:
Investments, at value (identified cost--$202,551,928) (Note 1a) $202,551,928
Cash 659,837
Interest receivable 1,328,552
Deferred organization expenses (Note 1d) 16,200
Prepaid registration fees and other assets (Note 1d) 1,100
------------
Total assets 204,557,617
------------
Liabilities:
Payables:
Securities purchased $ 3,000,575
Investment adviser (Note 2) 84,407
Distributor (Note 2) 51,649 3,136,631
------------
Accrued expenses and other liabilities 47,438
------------
Total liabilities 3,184,069
------------
Net Assets $201,373,548
============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $ 20,140,510
Paid-in capital in excess of par 181,264,593
Accumulated realized capital losses--net (Note 4) (31,555)
------------
Net Assets--Equivalent to $1.00 per share based on 201,405,103 shares of beneficial
interest outstanding $201,373,548
============
</TABLE>
<PAGE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1994
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 3,068,335
Expenses:
Investment advisory fees (Note 2) $ 526,176
Distribution fees (Note 2) 130,527
Transfer agent fees (Note 2) 27,244
Professional fees 20,755
Accounting services (Note 2) 15,714
Printing and shareholder reports 13,912
Registration fees (Note 1d) 9,981
Custodian fees 9,621
Pricing fees 4,607
Amortization of organization expenses (Note 1d) 3,466
Trustees' fees and expenses 1,307
Other 2,253
------------
Total expenses 765,563
------------
Investment income--net 2,302,772
Realized Loss on Investments--Net (Note 1c) (285)
------------
Net Increase in Net Assets Resulting from Operations $ 2,302,487
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
Sept. 30, March 31,
Increase (Decrease) in Net Assets: 1994 1994
<S> <C> <C>
Operations:
Investment income--net $ 2,302,772 $ 3,547,011
Realized loss on investments--net (285) (3,204)
------------ ------------
Net increase in net assets resulting from operations 2,302,487 3,543,807
------------ ------------
Dividends to Shareholders (Note 1e):
Investment income--net (2,302,772) (3,547,011)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (2,302,772) (3,547,011)
------------ ------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 371,367,250 854,339,246
Net asset value of shares issued to shareholders in reinvestment of dividends (Note 1e) 2,302,735 3,547,085
------------ ------------
373,669,985 857,886,331
Cost of shares redeemed (385,951,135) (831,571,902)
------------ ------------
Net increase (decrease) in net assets derived from beneficial interest transactions (12,281,150) 26,314,429
------------ ------------
Net Assets:
Total increase (decrease) in net assets (12,281,435) 26,311,225
Beginning of period 213,654,983 187,343,758
------------ ------------
End of period $201,373,548 $213,654,983
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
For the Period
The following per share data and ratios have been derived Six Months April 29,
from information provided in the financial statements. Ended 1991++ to
Sept. 30, For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- -------- --------
Investment income--net .01 .02 .02 .03
------- ------- -------- --------
Total from investment operations .01 .02 .02 .03
------- ------- -------- --------
Less dividends:
Investment income--net (.01) (.02) (.02) (.03)
------- ------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======== ========
Total Investment Return 2.19%* 1.88% 2.27% 3.65%*
======= ======= ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding distribution fees .60%* .59% .61% .44%*
======= ======= ======== ========
Expenses, net of reimbursement .73%* .72% .74% .57%*
======= ======= ======== ========
Expenses .73%* .72% .74% .82%*
======= ======= ======== ========
Investment income--net 2.19%* 1.86% 2.24% 3.52%*
======= ======= ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $201,374 $213,655 $187,344 $192,173
======= ======= ======== ========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA OHIO MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Ohio 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.
(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) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a five-year period. Prepaid registration fees are
charged to expense as the related shares are issued.
(e) Dividends to shareholders--The Fund declares dividends daily and
reinvests daily such dividends (net of non-resident alien 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.
<PAGE>
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. ("ML & Co."). The limited partners
are ML & Co. and Fund Asset Management, Inc. ("FAMI"), which is also
an indirect wholly-owned subsidiary of ML & Co.
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.
The most restrictive annual expense limitation requires that the
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed in any fiscal year 2.5%
of the Fund's first $30 million of average daily net assets, 2.0% of
the Fund's next $70 million of average daily net assets, and 1.5% of
the average daily net assets in excess thereof. No fee payment will
be made to the Investment Adviser during any year which will cause
such expenses to exceed the pro rata expense limitation at the time
of such payment.
CMA OHIO 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.
<PAGE>
Financial Data Services, Inc. ("FDS"), 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, FAMI, PSI, MLPF&S, FDS, 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, 1994, the Fund had a net capital loss carryforward of
approximately $31,300, of which $22,800 expires in 2000, $4,800
expires in 2001 and $3,700 expires in 2002. This amount will be
available to offset like amounts of any future taxable gains.
CMA OHIO MUNICIPAL MONEY FUND
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
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 1713
Boston, Massachusetts 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
