CMA
CMA OHIO
MUNICIPAL MONEY FUND
Annual Report
March 31, 1994
Merrill Lynch BULL LOGO
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
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].
<PAGE>
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 con-
sidered 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
TO OUR SHAREHOLDERS:
For the year ended March 31, 1994, CMA Ohio Municipal Money Fund
paid shareholders a net annualized yield of 1.88%*. As of March
31, 1994, the Fund's 7-day yield was 1.74%.
The Environment
Inflationary expectations changed sharply during the March
quarter. Following better-than-expected economic results, Federal
Reserve Board Chairman Alan Greenspan indicated in Congressional
testimony in January that continued strong expansion of the
economy would lead the central bank to tighten monetary policy in
an effort to control inflation. On February 4, 1994, the central
bank broke with tradition and publicly announced a modest 25
basis point (0.25%) increase in short-term interest rates. At the
March 22 meeting of the Federal Open Market Committee, the
Federal Reserve Board again raised the Federal Funds rate by 25
basis points, and also announced the increase.
<PAGE>
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second increase in the Federal Funds rate was less of a surprise,
investors remained concerned that interest rates would trend
upward sharply. As a result, stock and bond prices continued to
decline through the end of March. The volatility in the US
capital markets was mirrored in international markets. Political
and economic developments, along with concerns of heightened
global inflationary pressures, led to a sell-off in most capital
markets, especially the emerging markets that had appreciated
strongly in 1993.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investors will continue to gauge the pace of
the economic expansion and watch for signs of an overheating
economy. At this time, there is little evidence that the rate of
inflation will increase rapidly. Therefore, although the secular
long-term trend toward lower interest rates may be over, it is
not yet certain whether the pace of economic activity will
accelerate to the point where significant Federal Reserve Board
tightening will be necessary to contain inflation.
Investment Outlook and Strategy
Although the State of Ohio has been restructuring its economic
base towards more service and trade-oriented activities, the
industrial base (including auto production and durable goods) has
fared well in the current economic expansion. Domestic auto sales
were strong during the six months ended March 31, 1994, with US
auto companies posting record profits. This has translated into
an improved employment picture with Ohio's seasonally adjusted
unemployment rate declining to 5.9% in March 1994, slightly below
the national average of 6.5%. Improved economic conditions have
benefited the State as tax revenue collections are running on
target with fiscal 1994 projections. This has not deterred
Governor Voinovich from trying to control spending by
restructuring education and health care distributions. Governor
Voinovich is looking to improve the disparities in the funding of
the various Ohio school districts, as well as to improve access
to quality health care and contain the cost of Medicaid.
<PAGE>
During the six months ended March 31, 1994, the State of Ohio did
not need to issue any short-term debt, primarily because of its
positive cash flow stream. In addition, short-term issuance for
the various Ohio municipalities continued to remain modest at
$264 million, an increase of approximately 10% over the
comparable period last year. The majority of the short-term
issuance continued to be one year in maturity. Yields of AA-rated
notes declined to the 2.5% range in January and ended the period
in the 3.4% range. This large increase is primarily the result of
the current Federal Reserve Board activity in trying to contain
economic growth and control inflationary expectations.
CMA Ohio Municipal Money Fund pursued an aggressive strategy in
December 1993 by extending the average portfolio maturity to the
80-day range in anticipation of large seasonal-related cash
inflows. This was accomplished by purchasing various short-term
notes while reducing the Fund's exposure to lower-yielding
variable rate demand notes. Given current Federal Reserve Board
policy, coupled with the coming April tax-related seasonal
outflows, the Fund changed its strategy to a more defensive one.
We continue to closely monitor credit quality while seeking to
offer shareholders an attractive tax-exempt yield.
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
April 29, 1994
<PAGE>
Portfolio Abbreviations for CMA Ohio Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
DDN Daily Demand Notes
GO General Obligation Bonds
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
CMA OHIO MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio--99.3% $3,500 Akron, Ohio, Sanitation Sewer System Improvement Notes, 2.80% due 6/15/1994 $ 3,502
1,800 Cadiz, Ohio, BAN, 3.20% due 9/14/1994 1,802
3,000 Centerville, Ohio, City School District, BAN, 2.50% due 6/29/1994 3,000
Cincinnati, Ohio, Student Loan Funding Corporation, Student Loan Revenue
Bonds, VRDN (a):
1,500 AMT, Series A-1, 2.30% due 1/01/2007 1,500
1,000 AMT, Series A-2, 2.30% due 1/01/2007 1,000
4,200 AMT, Series A-3, 2.30% due 1/01/2007 4,200
700 AMT, Series A-3, 2.30% due 1/01/2017 700
1,000 Series 1983 A, 2.25% due 12/29/1998 1,000
3,900 Clermont County, Ohio, IDR (Southern Ohio Fabricator), VRDN, AMT, Series A,
2.50% due 9/01/2005 (a) 3,900
3,750 Cleveland, Ohio, City School District, TRAN, 4.50% due 12/30/1994 3,789
2,000 Clinton County, Ohio, Airport Facilities Revenue Refunding Bonds (Wilmington
Air Park, Inc.), VRDN, 2.35% due 6/01/2011 (a) 2,000
2,000 Columbus, Ohio, Sewer Revenue Bonds, VRDN, Series B, 2.20% due 6/01/2011 (a) 2,000
1,500 Cuyahoga County, Ohio, Hospital Improvement Revenue Bonds (Cleveland
University Hospital), DDN, 2.90% due 1/01/2016 (a) 1,500
1,000 Cuyahoga County, Ohio, IDR (Allen Group Incorporated Project), VRDN, 2.25%
due 12/01/2005 (a) 1,000
2,800 Cuyahoga County, Ohio, IDR (Cleveland E Excel Ltd.), AMT, VRDN, 2.55% due
3/01/2019 (a) 2,800
Cuyahoga County, Ohio, IDR, Refunding, VRDN, AMT (a):
<PAGE> 3,000 (Trebmal Landerhaven), 2.30% due 12/01/2006 3,000
1,100 (Trebmal Miles Ltd. Project), 2.30% due 12/01/2006 1,100
5,300 Dayton, Ohio, Airport Improvement, BAN, AMT, 2.90% due 10/25/1994 5,301
1,000 Dayton, Ohio, Special Facilities Revenue Bonds (Emery Air Freight Project),
DDN, AMT, Series D, 3.10% due 10/01/2009 (a) 1,000
500 Erie County, Ohio, IDR (Brighton Manor Company Project), VRDN, AMT, 2.25%
due 11/01/2016 (a) 500
2,010 Erie County, Ohio, IDR, Refunding (Huron Health Care Center Project), VRDN,
2.35% due 8/01/2007 (a) 2,010
1,500 Fairfield County, Ohio, BAN, 3.15% due 10/28/1994 1,503
700 Franklin County, Ohio, Health System Revenue Bonds (Saint Anthony Health
Facility), DDN, Series B, 2.90% due 7/01/2015 (a) 700
5,000 Franklin County, Ohio, Hospital Revenue Bonds (Children's Hospital Project),
VRDN, Series B, 2.45% due 12/01/2014 (a) 5,000
Franklin County, Ohio, IDR, VRDN, AMT (a):
3,100 Refunding (Grant Medical Center Project), 2.30% due 12/01/1994 3,100
2,855 Refunding (Heekin Can Inc. Project), 2.30% due 12/01/1994 2,855
2,500 Refunding (Heekin Can Inc. Project), 2.50% due 5/01/2007 2,500
2,000 (Tigeropoly Manufacturing, Inc.), 2.45% due 7/01/1997 2,000
3,000 Franklin County, Ohio (Solid Waste Facilities), BAN, 3% due 8/30/1994 3,005
</TABLE>
CMA OHIO MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $4,000 Green, Ohio, Local School District Summit County, BAN, 3.30% due 4/14/1994 $ 4,001
(continued) 4,355 Greene County, Ohio, Certificates of Indebtedness, 2.98% due 7/20/1994 4,359
3,500 Greene County, Ohio, IDR, Refunding (Apple Valley Association), VRDN, 2.60%
due 8/01/2009 (a) 3,500
1,900 Hamilton County, Ohio, Health Care Systems Revenue Bonds (Franciscan Sister
Poor Health), Series A, DDN, 2.90% due 3/01/2017 (a) 1,900
590 Lakewood, Ohio, Sanitary Sewer Systems Special Obligation, BAN, 2.99% due
5/13/1994 590
3,000 Lorain County, Ohio, BAN, 3% due 2/10/1995 3,008
Lucas County, Ohio, BAN:
5,000 Series 1, 3.87% due 8/18/1994 5,007
2,000 Series 2, 3.60% due 12/15/1994 2,006
Marion County, Ohio, Hospital Improvement Revenue Bonds (Pooled Lease
Program):
2,435 2.90% due 4/01/1994 2,435
2,220 VRDN, 2.35% due 5/01/2019 (a) 2,220
2,250 Mason, Ohio, Sewage Systems Revenue Bonds, 3.47% due 9/15/1994 2,253
3,500 Mentor, Ohio, IDR (Metcor Partnership/Tridelt), VRDN, AMT, 2.55% due
12/01/2008 (a) 3,500
2,200 Middletown, Ohio, BAN, 2.97% due 4/15/1994 2,201
1,500 Mount Vernon, Ohio, City School District, BAN, 2.50% due 6/01/1994 1,500
5,150 Northwestern Ohio Local School District, Wayne and Ashland Counties,
School Improvement Notes, 3.11% due 8/01/1994 5,161
<PAGE> 2,455 Ohio HFA, M/F Housing Revenue Bonds (Kenwood Congregate Retirement
Program), VRDN, 2.35% due 12/01/2015 (a) 2,455
7,735 Ohio HFA, S/F Mortgage Revenue Bonds, AMT, Series A-2, 2.95% due 6/01/1994 7,735
4,700 Ohio State Air Quality Development Authority, Multi-Mode Revenue Refunding
Bonds (Timken Company Project), VRDN, 2.25% due 6/01/2001 (a) 4,700
2,500 Ohio State Air Quality Development Authority, Pollution Control Facilities,
PCR (Duquesne Light), CP, AMT, 2.60% due 5/10/1994 2,500
Ohio State Air Quality Development Authority Revenue Bonds (a):
400 (Honda America Manufacturing), VRDN, 2.20% due 1/01/1997 400
3,600 (JMG Funding Ltd. Partnership Project), UPDATES, AMT, Series A, 2.30% due
10/01/2027 3,600
Ohio State Air Quality Development Authority, Revenue Refunding Bonds,
VRDN (a):
400 (Environmental Mead Corp.), UPDATES, 3.05% due 1/01/2010 400
2,000 (JMG Funding Ltd. Partnership), AMT, Series B, 2.45% due 10/01/2027 2,000
Ohio State Environmental Improvement Revenue Bonds, Ohio Water
Development (Mead Corporation Project), CP, AMT:
1,000 2.55% due 4/25/1994 1,000
1,500 2.55% due 5/10/1994 1,500
1,500 2.55% due 5/11/1994 1,500
4,000 Ohio State Environmental Improvement Revenue Bonds (US Steel Corp.), VRDN,
2.30% due 5/01/2011 (a) 4,000
500 Ohio State Environmental Water Development Authority Revenue Bonds
(Honda America), VRDN, 2.20% due 1/01/1997 (a) 500
3,505 Ohio State, GO, 4% due 8/01/1994 3,521
4,500 Ohio State, GO, Tender Option, Custodial Receipts, Series MGT-3, VRDN, 2.40%
due 9/01/2003 (a) 4,500
3,100 Ohio State Higher Educational Facilities Revenue Bonds (Kenyon College
Project), VRDN, 2.20% due 4/01/2022 (a) 3,100
750 Ohio State PCR, Refunding (Alcoa Project), DDN, 2.25% due 10/01/2000 (a) 750
</TABLE>
CMA OHIO MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $2,230 Ohio State Public Facilities Commission, Higher Education Capital Facilities,
(concluded) Refunding Bonds, Series II-A, 4.60% due 6/01/1994 $ 2,238
4,000 Ohio State Public Facilities Commission, Tender Option MGT-55, VRDN, 2.40%
due 6/01/2000 (a) 4,000
2,100 Ohio State University, General Receipts, VRDN, Series B, 2.20% due 12/01/2012 (a) 2,100
3,000 Ohio State Water Development Authority, Pollution Control Facilities, PCR
(Duquesne Light), CP, 2.65% due 5/06/1994 3,000
1,750 Ohio State Water Development Authority, Pollution Control Facilities Revenue
Bonds (Ohio Edison Co.), Series A, 4.65% due 5/01/1994 1,754
2,000 Richland County, Ohio, BAN, 2.96% due 9/15/1994 2,002
1,800 Rickenbacker, Ohio, Port Authority, IDR, Refunding (Rickenbacker Holdings,
Inc.), VRDN, 2.35% due 12/01/2010 (a) 1,800
<PAGE> 1,300 Sandusky County, Ohio, IDR (Brighton Manor Co. Project), VRDN, AMT, 2.25%
due 12/01/2016 (a) 1,300
1,815 Scioto County, Ohio, Hospital Facilities Revenue Bonds (VHA Central Inc., Capital
Asset), VRDN, Series F, 2.20% due 12/01/2025 (a) 1,815
Stark County, Ohio, BAN:
1,500 3.02% due 10/26/1994 1,502
1,010 3.15% due 12/09/1994 1,012
Summit County, Ohio, IDR:
2,500 (American Laser Tech Inc. Project), VRDN, 2.55% due 3/01/2001 (a) 2,500
925 (Lucerne Production Project), VRDN, AMT, 2.55% due 6/01/2002 (a) 925
850 (Struktol Project), VRDN, AMT, Series A, 2.55% due 6/01/2002 (a) 850
1,270 (Texler Inc. Project), AMT, 3% due 5/01/1994 1,270
1,000 Toledo Lucas County, Ohio, Port Authority Development Revenue Bonds
(Frostbite Brands Inc. Project), VRDN, AMT, 2.65% due 12/01/2013 (a) 1,000
Toledo, Ohio, City Services Special Assessment Notes:
2,000 2.95% due 6/01/1994 2,000
5,000 3.33% due 7/28/1994 5,007
2,500 3.20% due 12/01/1994 2,504
1,000 Troy, Ohio, Economic Development Revenue Bonds (L&CP Corporation Project),
AMT, 2.90% due 6/01/1994 1,000
University of Cincinnati, Ohio, BAN:
3,000 General Receipts, Series S1, 4% due 3/23/1995 3,021
3,250 Series S, 3.02% due 9/01/1994 3,253
1,960 Vermilion, Ohio, IDR, Refunding (Landover Properties), VRDN, 2.30% due
10/01/2004 (a) 1,960
Warren County, Ohio, IDR, VRDN (a):
4,000 (Johnson and Hardin Enterprises), AMT, Series A, 2.50% due 2/01/2010 4,000
1,900 (Pioneer Industrial Components), 2.30% due 12/01/2005 1,900
3,385 Wood County, Ohio, Economic Development Revenue Bonds (Great Lakes
Window Project), AMT, 2.875% due 6/01/1994 3,385
Puerto 2,500 Commonwealth of Puerto Rico, TRAN, Series A, 3% due 7/29/1994 2,502
Rico--1.2%
Total Investments (Cost--$214,669*)--100.5% 214,669
Liabilities in Excess of Other Assets--(0.5%) (1,014)
--------
Net Assets--100.0% $213,655
========
<FN>
(a)The interest rate is subject to change periodically based on certain indexes.
The interest rates shown are the rates in effect at March 31, 1994.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA OHIO MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1994
<S> <C> <C>
Assets:
Investments, at value (identified cost--$214,668,874)(Note 1a) $ 214,668,874
Cash 201,786
Interest receivable 1,220,318
Deferred organization expenses (Note 1d) 16,200
Prepaid registration fees and other assets (Note 1d) 1,206
-------------
Total assets 216,108,384
-------------
Liabilities:
Payables:
Securities purchased $ 2,252,632
Investment adviser (Note 2) 92,982
Distributor (Note 2) 38,101 2,383,715
-------------
Accrued expenses and other liabilities 69,686
-------------
Total liabilities 2,453,401
-------------
Net Assets $ 213,654,983
=============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 21,368,625
Paid-in capital in excess of par 192,317,628
Accumulated realized capital losses--net (Note 4) (31,270)
-------------
Net Assets--Equivalent to $1.00 per share based on 213,686,253 shares of beneficial
interest outstanding $ 213,654,983
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA OHIO MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1994
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 4,920,421
Expenses:
Investment advisory fees (Note 2) $ 955,932
Distribution fees (Note 2) 237,695
Accounting services (Note 2) 40,798
Transfer agent fees (Note 2) 29,133
Professional fees 28,491
Registration fees (Note 1d) 22,896
Printing and shareholder reports 22,099
Custodian fees 15,835
Pricing fees 8,863
Amortization of organization expenses (Note 1d) 7,801
Trustees' fees and expenses 2,254
Other 1,613
-------------
Total expenses 1,373,410
-------------
Investment income--net 3,547,011
Realized Loss on Investments--Net (Note 1c) (3,204)
-------------
Net Increase in Net Assets Resulting from Operations $ 3,543,807
=============
</TABLE>
<PAGE>
CMA OHIO MUNICIPAL MONEY FUND
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <C> <C>
Operations:
Investment income--net $ 3,547,011 $ 4,321,650
Realized loss on investments--net (3,204) (7,574)
------------- -------------
Net increase in net assets resulting from operations 3,543,807 4,314,076
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net (3,547,011) (4,319,265)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (3,547,011) (4,319,265)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 854,339,246 898,919,232
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 3,547,085 4,319,227
------------- -------------
857,886,331 903,238,459
Cost of shares redeemed (831,571,902) (908,062,703)
------------- -------------
Net increase (decrease) in net assets derived from beneficial interest transactions 26,314,429 (4,824,244)
------------- -------------
Net Assets:
Total increase (decrease) in net assets 26,311,225 (4,829,433)
Beginning of year 187,343,758 192,173,191
------------- -------------
End of year $ 213,654,983 $ 187,343,758
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA OHIO MUNICIPAL MONEY FUND
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived April 29,
from information provided in the financial statements. 1991++
For the Year Ended March 31, to March 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
---------- ---------- ----------
Investment income--net .02 .02 .03
---------- ---------- ----------
Total from investment operations .02 .02 .03
---------- ---------- ----------
Less dividends:
Investment income--net (.02) (.02) (.03)
---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
========== ========== ==========
Total Investment Return 1.88% 2.27% 3.65%*
========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding distribution fees .59% .61% .44%*
========== ========== ==========
Expenses, net of reimbursement .72% .74% .57%*
========== ========== ==========
Expenses .72% .74% .82%*
========== ========== ==========
Investment income--net 1.86% 2.24% 3.52%*
========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $ 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 investment management 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. 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>
(f) Reclassifications--Undistributed investment income--
net, in the amount of $5,932, has been reclassified to
accumulated realized capital losses--net.
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), 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 Fund's average daily net assets not
exceeding $500 million; 0.425% of the average daily net assets in
excess of $500 million but not exceeding $1 billion; and 0.375%
of the 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,
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
2.0% of the 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.
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 the 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, MLIM, 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. These will be
available to offset like amounts of any future taxable gains.
<AUDIT-REPORT>
CMA OHIO MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Ohio Municipal Money Fund of
CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of
CMA Ohio Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1994, the related statements of
operations for the year then ended and changes in net assets
for each of the years in the two-year period then ended,
and the financial highlights for the two-year period then
ended and the period April 29,1991 (commencement of operations)
to March 31,1992. These financial statements and the financial
highlights are the responsibility of the Fund's managment.
Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
<PAGE>
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned at March 31, 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, such financial statements and financial
highlights present fairly, in all material respects, the
financial position of CMA Ohio Municipal Money Fund of CMA Multi-
State Municipal Series Trust as of March 31, 1994, the results of
its operations, the changes in its net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche
Princeton, New Jersey
April 29, 1994
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
Ohio Municipal Money Fund on CMA Multi-State Municipal Series
Trust during the taxable year ended March 31, 1994 qualify as
tax-exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed during the
Fund's taxable year ended March 31, 1994.
Please retain this information for your records.
