[CMA LOGO]
CMA OHIO
MUNICIPAL MONEY FUND
Annual Report
[SIDE BAR LOGO]
March 31, 1997
[MERRILL LYNCH 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
Steven T. Lewis -- Vice President
Darrin J. SanFillippo -- 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 351
Boston, MA 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
* For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
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. Statements and other information herein are as
dated and are subject to change.
CMA Ohio
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 #16058 -- 3/97
[RECYCLE LOGO] Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the year ended March 31, 1997, CMA Ohio Municipal Money Fund paid
shareholders a net annualized yield of 2.99%*. As of March 31, 1997, the
Fund's 7-day yield was 2.92%.
Economic Environment and Investment Strategy
During the six-month period ended March 31, 1997, the state of Ohio
began to experience an easing of economic activity from the fast pace
experienced in the previous periods. Although the economy is still
growing, a decline in the state's manufacturing sector resulted from a
shrinkage in company operations in Ohio. An increase in company
expenditures on capital improvements, combined with the desire to shift
to non-unionized production facilities elsewhere, contributed to this
decline. Nevertheless, growing personal income and high consumer
confidence levels continue to support Ohio's housing sector, and growing
economic diversification away from manufacturing contributed to steady
economic growth. As of February 28, 1997, the latest month that data was
available, Ohio's seasonally adjusted unemployment rate grew to 5.4%,
compared to the national average of 5.3%, from 4.9% in September 1996.
The rewards of solid economic growth continue to translate into positive
revenue streams for the state. For the nine months ended March 31, 1997,
Ohio tax collections of $12.6 billion remained approximately 1% above
budget estimates and at the same time 7.6% above the comparable period
last year. These positive revenue streams allowed Governor Voinovich to
spread the good economic fortune to a number of initiatives throughout
the state. Concentrating on education, one such proposal is to increase
state assistance for school building repair by $300 million while
allocating $30 million of additional lottery funds to provide
computers for all public schools. However, a recent ruling by the State
Supreme Court found current school funding unconstitutional based on
unequalized funding. This ruling could present new funding demands on
the state and may require tax increases in the next fiscal year. The
state continues to avoid borrowing in the short-term municipal market to
finance daily operations, while the various local municipalities
maintained moderate borrowings levels of $523 million for the six-month
period ended March 31, 1997.
*Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
CMA Ohio Municipal Money Fund began the six-month period ended March 31,
1997 employing an aggressive approach to the market with an average
portfolio maturity in the 75-day range. As fears of an imminent interest
rate increase by the Federal Reserve Board subsided and investors began
anticipating an economic slowdown, the Treasury bill market and short-
term municipal note market rallied approximately 25 basis points -- 50
basis points (0.25% -- 0.50%). The Fund benefited as other investors
began increasing their average portfolio maturities utilizing lower-
yielding municipal notes. As yields continued to decline, the Fund began
employing a more neutral approach to the market allowing the average
portfolio maturity to decline to the 60-day range entering December
1996. This strategy allowed us to invest in variable rate demand notes
(VRDNs) and take advantage of the year-end increase in VRDN rates
without having to pursue overpriced short-term municipal notes in Ohio.
In late December 1996, we generally would have extended the Fund's
average life by reducing the VRDN exposure as seasonal supply imbalances
in the first quarter would cause VRDN yields to remain low. However, as
evidence of low employment statistics, high wage statistics, high
consumer confidence, high personal income and an improving housing
market continued to mount, the notion that the Federal Reserve Board
would begin to pursue a monetary policy tightening began to influence
our portfolio strategy. We began employing a more defensive approach to
the market allowing the average portfolio maturity to decline to the 45-
day range. We utilized primarily VRDNs to meet new subscriptions into
the Fund and continued to avoid aggressively priced longer-dated Ohio
municipal notes. This strategy benefited the Fund because the
anticipated supply imbalances were not as pronounced as in previous
years, allowing VRDN yields to remain at attractive levels.
On March 25, 1997, because of concerns about a growing economy and a
tight labor market, the Federal Reserve Board made a preemptive move
against inflation by raising the Federal Funds rate by 25 basis points
to 5.50%. This increase in interest rates, which many believe is the
first in a series of interest rate hikes, has already forced yields on
Treasury bills and municipal notes higher by 25 basis points - 50 basis
points.
Overall, the Fund performed well during the fiscal year ended March 31,
1997 as we took advantage of periods of weakness in yields created by
market uncertainties, and extended the average portfolio maturity and
locked in attractive yields when the market reversed itself. At the same
time, we avoided being too aggressive in the Fund's purchases of Ohio
municipal notes, allowing the average life to decline which we believe
will position the Fund well for the upcoming months.
Looking ahead, we expect to continue to pursue a defensive strategy for
the Fund. This strategy is warranted as we prepare for a period of
technical weakness in the short-term municipal market created by tax-
related redemptions. In addition, we will continue to monitor economic
data that may influence how far the Federal Reserve Board may go in
raising interest rates and its affect on the short-term municipal note
market. We will look for opportunities to continue to diversify the Fund
and replace maturing municipal notes as the market adjusts to higher
yield levels. As always, we will also closely monitor credit quality
while seeking an attractive tax-exempt yield for shareholders.
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 months and years
ahead.
Sincerely,
/S/ARTHUR ZEIKEL
Arthur Zeikel
President
/S/VINCENT R. GIORDANO
Vincent R. Giordano
Senior Vice President
/S/KEVIN A. SCHIATTA
Kevin A. Schiatta
Vice President and Portfolio Manager
May 6, 1997
<TABLE>
<CAPTION>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1997 (IN THOUSANDS)
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
Ohio -- 99.3% $1,090 Allen County, Ohio, IDR (Nickles Bakery Project), VRDN, 4.125% due 1/02/2003 (a) $1,090
650 Arlington, Ohio, BAN, 4.25% due 7/09/1997 651
3,900 Ashtabula County, Ohio, Hospital Facilities Revenue Bonds (Ashtabula County
Medical Center Project), VRDN, 3.55% due 12/01/2007 (a) 3,900
2,385 Ashtabula County, Ohio, IDR (Neff-Perkins Co. Project), VRDN, AMT, 3.65%
due 6/01/2005 (a) 2,385
1,670 Bluffton, Ohio, Exempted Village School District, BAN, 4.22% due 6/19/1997 1,672
395 Brooklyn Heights, Ohio, IDR (ATC Nymold Inc.), VRDN, AMT, 3.65% due 2/01/2002 (a) 395
1,035 Canfield, Ohio, Local School District, BAN, UT, 4.50% due 10/02/1997 1,037
1,095 Canton, Ohio, IDR (Accu Plate Project), VRDN, AMT, 3.55% due 3/01/2017 (a) 1,095
3,355 Cincinnati and Hamilton Counties, Ohio, Port Authority, Economic Development
Revenue Bonds (Berthesda One Ltd.), 4.10% due 8/01/1997 3,355
100 Cincinnati and Hamilton Counties, Ohio, Port Authority, IDR, Refunding
(Schottenstein Stores), VRDN, 3.50% due 9/01/1997 (a) 100
Cincinnati, Ohio, City School District:
7,000 BAN, 4.37% due 9/18/1997 7,012
2,280 TAN, Series C, 5.41% due 7/10/1997 2,291
5,200 Clermont County, Ohio, Hospital Facilities Revenue Refunding Bonds (Mercy
Health Systems), VRDN, Series A, 3.45% due 12/01/2021 (a) 5,200
2,000 Clermont County, Ohio, IDR (Southern Ohio Fabricator), VRDN, AMT, Series A,
3.75% due 9/01/2005 (a) 2,000
1,050 Crawford County, Ohio, BAN, UT, 4.35% due 5/16/1997 1,050
900 Cuyahoga County, Ohio, Health Care Facilities Revenue Bonds (Benjamin Rose
Institute Project), VRDN, Series B, 3.50% due 12/01/2000 (a) 900
2,000 Cuyahoga County, Ohio, Hospital Revenue Improvement Bonds (Cleveland
University Hospital), VRDN, 3.80% due 1/01/2016 (a) 2,000
Cuyahoga County, Ohio, IDR, VRDN (a):
940 (Athens Pastries Inc. Project), AMT, 3.70% due 6/03/2009 940
5,275 (Cleveland E Excel Ltd.), AMT, 3.65% due 3/01/2019 5,275
650 (Erieview Metal Treating Project), AMT, 3.70% due 5/05/2010 650
3,230 Refunding (Parma Care Center, Inc.), 3.70% due 12/01/2011 3,230
945 Refunding (Pleasant Lake Association Project), 3.55% due 5/01/2011 945
3,700 (Suburban Pavilion Inc. Project), AMT, 4.125% due 10/02/2006 3,700
Eagle Tax Exempt Trust, Custodial Receipts, VRDN (a):
5,000 3.56% due 7/01/2015 5,000
5,000 3.56% due 7/01/2015 5,000
1,970 East Muskingum, Ohio, Water Authority Revenue Bonds, BAN, 4.50% due 6/27/1997 1,972
Erie County, Ohio, IDR, VRDN (a):
500 (Brighton Manor Company Project), AMT, 3.65% due 11/01/2016 500
1,705 Refunding (Huron Health Care Center Project), 3.55% due 8/01/2007 1,705
1,910 Euclid County, Ohio, BAN, 4.15% due 7/11/1997 1,911
Finneytown, Ohio, Local School District, BAN, UT:
1,370 4.22% due 7/17/1997 1,373
1,000 4.38% due 7/17/1997 1,002
9,750 Forest Hills, Ohio, Local School District, BAN, UT, 4.21% due 6/17/1997 9,764
3,500 Franklin County, Ohio, Health Systems Revenue Bonds (Franciscan Sisters - Saint
Anthony Medical Facility), VRDN, Series B, 3.65% due 7/01/2015 (a) 3,500
Franklin County, Ohio, Hospital Revenue Bonds, VRDN (a):
5,000 (Children's Hospital Project), Series B, 3.65% due 12/01/2014 5,000
1,000 (Lutheran Senior City Inc. Project), 3.45% due 5/01/2015 1,000
Franklin County, Ohio, IDR :
1,395 (GSW Building Association Ltd.), 3.70% due 5/01/1997 1,395
2,500 Refunding (Heekin Can Inc. Project), VRDN, AMT, 3.75% due 5/01/2007 (a) 2,500
3,000 Franklin County, Ohio, M/F Housing Revenue Bonds (Colonial Courts Project),
VRDN, AMT, 3.70% due 12/01/2024 (a) 3,000
821 Franklin, Ohio, BAN, 4.45% due 8/26/1997 822
3,100 Fulton County, Ohio, IDR (Gilders Business Holdings Project), VRDN, AMT,
3.70% due 4/01/2007 (a) 3,100
2,200 Geauga County, Ohio, IDR (Neff - Perkins Co. Project), VRDN, AMT, 3.65%
due 6/01/2005 (a) 2,200
3,125 Greene County, Ohio, GO, 4.50% due 9/11/1997 3,131
1,000 Greene County, Ohio, IDR (FC Ltd. AFC Stamping), VRDN, AMT, 3.70% due
9/01/2016 (a) 1,000
2,500 Greenville, Ohio, BAN, 4.50% due 7/09/1997 2,502
880 Hamilton County, Ohio, Economic Development Revenue Bonds (Cincinnati
Performing Arts), VRDN, 3.50% due 6/15/2005 (a) 880
1,725 Hancock County, Ohio, GO, Series A, 4.50% due 9/19/1997 1,729
1,180 Huber Heights, Ohio, IDR (Lasermike Inc. Project), VRDN, AMT, 3.70% due
12/01/2014 (a) 1,180
2,000 Indian Lake, Ohio, Local School District, BAN, 4.14% due 4/09/1997 2,000
5,287 Kent, Ohio, City School District, BAN, UT, 4% due 7/15/1997 5,292
2,400 Knox County, Ohio, BAN, Series A, 4.10% due 8/27/1997 2,405
1,800 Lisbon, Ohio, Exempted Villlage School District, BAN, UT, 4.50% due 9/04/1997 1,803
5,500 Lorain County, Ohio, BAN, 4.40% due 9/19/1997 5,510
3,200 Lorain County, Ohio, IDR (DGR Investment Ltd./Trimline Die Corp.), VRDN, AMT,
3.80% due 12/01/2012 (a) 3,200
5,000 Lorain County, Ohio, Independent Living Facilities Revenue Bonds (Elyria
United Methodist Project), VRDN, Series A, 3.50% due 6/01/2022 (a) 5,000
3,000 Lucas County, Ohio, Economic Development Revenue Bonds (Hammill
Manufacturing Co. Project), VRDN, AMT, 3.60% due 5/01/2010 (a) 3,000
225 Lucas County, Ohio, Hospital Revenue Bonds (Sunshine Children's Home
Project), VRDN, 3.60% due 12/01/2007 (a) 225
4,995 Lucas County, Ohio, IDR (Reichert Stamping Co. Project), VRDN, 3.70%
due 7/15/2006 (a) 4,995
1,100 Madeira, Ohio, Local School District, BAN, UT, 4.22% due 7/17/1997 1,102
955 Marion County, Ohio, Hospital Improvement Revenue Bonds (Pooled Lease
Program), VRDN, 3.55% due 5/01/2019 (a) 955
1,935 Marion County, Ohio, IDR (Mid-Ohio Packaging Company Project), VRDN,
AMT, 3.70% due 11/01/2015 (a) 1,935
2,970 Mentor, Ohio, IDR (Metcor Parnership/Tridelt), VRDN, AMT, 3.65% due
12/01/2008 (a) 2,970
2,470 Montgomery County, Ohio, IDR (Citywide Development Corp. Project), VRDN,
AMT, 3.65% due 12/01/2013 (a) 2,470
605 Montgomery County, Ohio, IDR (Town Centers Ltd. Partnership Project), AMT,
3.80% due 5/15/1997 605
1,980 Moraine, Ohio, IDR, Refunding (Gray America Corporation Project), VRDN, AMT,
3.65% due 12/01/2001 (a) 1,980
400 Mount Gilead, Ohio, BAN, 4% due 11/06/1997 400
2,000 Obetz, Ohio, IDR (HFI Inc. Project), VRDN, AMT, 3.65% due 10/01/2003 (a) 2,000
Ohio, HFA, Mortgage Revenue Bonds, AMT (c):
10,000 Series A-1, 3.55% due 9/01/1997 10,000
10,000 Series B-3, 4% due 8/13/1997 10,000
Ohio State Air Quality Development Authority, Revenue Refunding Bonds:
2,400 (Cincinnati Gas & Electric), VRDN, Series A, 3.80% due 9/01/2030 (a) 2,400
1,400 (Cincinnati Gas & Electric), VRDN, Series B, 3.65% due 9/01/2030 (a) 1,400
5,930 (Environmental Improvement - USX Project), 3.45% due 9/01/1997 5,930
Ohio State Higher Educational Facilities, Commission Revenue Bonds,
VRDN (a):
2,790 (Mount Vernon), 3.60% due 9/01/2009 2,790
4,800 (Facilities Pooled Financing), 3.30% due 12/01/2016 4,800
3,325 Ohio State, IDR, Refunding (General Motors Corp. Project), VRDN, 3.70% due
9/01/2001 (a) 3,325
2,600 Ohio State, PCR, Refunding (Sohio Air Project - BP Petroleum), VRDN, 3.60%
due 5/01/2022 (a) 2,600
2,110 Ohio State, PCR, Refunding (Sohio Water Project - BP Petroleum), VRDN, 3.60%
due 5/01/2022 (a) 2,110
9,000 Ohio State Water Development Authority, Environmental Improvement Revenue
Bonds (Mead Corp. Project), CP, AMT, 3.45% due 5/01/1997 9,000
Ohio State Water Development Authority, Pollution Control Facilities Revenue
Bonds (Duquesne Light Co. Project), CP, AMT:
3,000 3.40% due 4/01/1997 3,000
5,000 3.50% due 5/09/1997 5,000
5,735 Ohio State Water Development Authority, Pollution Control Facilities Revenue
Refunding Bonds (Cleveland Electric Illuminating Co.), CP, Series A, 3.45% due
4/15/1997 (b) 5,735
6,745 Ohio State Water Development Authority Revenue Bonds, VRDN, Series A,
3.55% due 9/01/1998 (a) 6,745
3,000 Ohio State Water Development Authority, Solid Waste Disposal Revenue
Bonds (American Steel & Wire Corp.), VRDN, 3.70% due 9/01/2025 (a) 3,000
400 Paulding County, Ohio, IDR, Refunding (Countrymark Cooperative Inc. Project),
VRDN, 3.50% due 3/01/1999 (a) 400
4,600 Paulding County, Ohio, Solid Waste Disposal Revenue Bonds (Lafarge Corp.
Project), VRDN, AMT, 3.70% due 8/01/2026 (a) 4,600
Portage County, Ohio, IDR, VRDN, AMT (a):
1,445 (John E. Susong Project), Series B, 3.70% due 5/02/2016 1,445
1,825 (NCSP L.P. Project), 3.65% due 7/01/2014 1,825
2,695 (PM Property One, Ltd.), 3.65% due 11/01/2012 2,695
2,180 Refunding (John E. Susong Project), Series A, 3.70% due 5/02/2011 2,180
1,350 Powell Village, Ohio, BAN, 4.10% due 7/09/1997 1,351
2,380 Richland County, Ohio, BAN, 4.375% due 6/05/1997 2,382
1,100 Rickenbacker, Ohio, Port Authority, IDR, Refunding (Rickenbacker Holdings,
Inc.), VRDN, 3.55% due 12/01/2010 (a) 1,100
1,250 Ross County, Ohio, Hospital Revenue Bonds (Medical Center Hospital Project),
VRDN, 3.45% due 12/01/2020 (a) 1,250
4,500 Sandusky County, Ohio, IDR (Magnesium Refining Technologies, Inc.), VRDN,
AMT, Series A, 3.70% due 9/01/2007 (a) 4,500
Sandusky County, Ohio, IDR, VRDN, AMT (a):
1,300 (Brighton Manor Co. Project), 3.65% due 12/01/2016 1,300
2,200 (Crown Battery Manufacturing Co.), 3.55% due 8/06/2003 2,200
305 Solon, Ohio, IDR (Tameran Project), VRDN, AMT, 3.70% due 11/01/2004 (a) 305
Stark County, Ohio, IDR, VRDN, AMT (a):
2,695 (Superior Dairy Inc. Project), 3.65% due 5/01/2003 2,695
1,350 (Wilkof-Morris Project), 3.70% due 1/01/2010 1,350
2,160 Strongsville, Ohio, IDR (E&E Properties/Dupli System Project), VRDN, 3.70%
due 2/01/2010 (a) 2,160
600 Summit County, Ohio, Hospital Facilities Revenue Bonds (Cuyahoga Falls
General Hospital), VRDN, Series B, 3.50% due 7/01/1999 (a) 600
Summit County, Ohio, IDR:
1,760 (Austin Printing Co. Inc. Project), VRDN, AMT, 3.70% due 8/01/2006 (a) 1,760
2,480 (Delco Corp. Project), VRDN, AMT, 3.70% due 6/01/2016 (a) 2,480
400 (Forest Manufacturing Project), VRDN, 3.65% due 11/01/2001 (a) 400
840 (Hardcoating Project), VRDN, 3.70% due 7/01/2002 (a) 840
670 (Lucerne Production Project), VRDN, AMT, 3.65% due 6/01/2002 (a) 670
905 (Ohio Camshaft Project), 3.80% due 4/01/1997 905
1,260 (Sigma Properties Project), VRDN, 3.70% due 6/01/2008 (a) 1,260
1,100 (Steffen Bookbinders Project), VRDN, 3.70% due 11/01/2004 (a) 1,100
550 (Struktol Project), VRDN, AMT, Series A, 3.65% due 6/01/2002 (a) 550
1,040 (Texler Inc. Project), AMT, 3.80% due 5/01/1997 1,040
4,000 Toledo, Ohio, City Services Special Assessment Notes (Special Obligation),
4.50% due 6/02/1997 4,003
1,590 Troy, Ohio, Economic Development Revenue Bonds (L&CP Corp. Project), AMT,
3.70% due 6/01/1997 1,590
1,985 Trumbull County, Ohio, IDR (ATD Corp. Project), VRDN, AMT, 3.70% due
8/01/2010 (a) 1,985
2,500 Union County, Ohio, IDR (Union Aggregates Co. Project), VRDN, AMT, 3.75%
due 11/01/2006 (a) 2,500
1,250 Valley View, Ohio, IDR (Porter Development Project), VRDN, AMT, 3.45% due
5/01/2016 (a) 1,250
1,575 Valley View, Ohio, IDR, Refunding and Improvement (Sweet Valley Dillion Project),
VRDN, AMT, 3.25% due 4/01/2011 (a) 1,575
821 Wapakoneta, Ohio, Special Assessment, 4.70% due 9/16/1997 823
Warren County, Ohio, IDR, VRDN, AMT (a):
3,700 (Johnson & Hardin Enterprises), Series A, 3.75% due 2/01/2010 3,700
2,080 (Kardol Quality Products Project), 3.75% due 12/01/2014 2,080
1,185 Warren County, Ohio, Special Assessment, BAN, 4.38% due 6/03/1997 1,186
8,500 Westlake, Ohio, City School District, BAN, UT, 4.20% due 7/28/1997 8,516
2,465 Willoughby, Ohio, IDR (Malish Brush & Specialty), VRDN, AMT, 3.65% due
6/01/2009 (a) 2,465
3,000 Wood County, Ohio, Economic Development Revenue Bonds (Great Lakes
Window Project), AMT, 4.50% due 6/01/1997 3,000
Wood County, Ohio, IDR, VRDN, AMT (a):
1,205 (B&B Box Co. Project), 3.70% due 3/01/2011 1,205
1,120 (Centaur Tool & Die Inc. Project), 3.70% due 8/01/2010 1,120
1,410 Woodster, Ohio, IDR (Litco International Inc. Project), VRDN, AMT, 3.70% due
5/01/2010 (a) 1,410
3,525 Zanesville - Muskingum County, Ohio, Port Authority, IDR (B.E. Products Inc.
Project), VRDN, AMT, 3.65% due 9/01/2004 (a) 3,525
Total Investments (Cost -- $324,997*) -- 99.3% 324,997
Other Assets Less Liabilities -- 0.7% 2,176
-----------
Net Assets -- 100.0% $327,173
===========
(a) The interest rate is subject to change periodically based on certain indexes. The interest rate
shown is the rate in effect at March 31, 1997.
(b) FGIC Insured.
(c) GNMA Collateralized.
* Cost for Federal income tax purposes.
Portfolio Abbreviations for CMA Ohio Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Agency
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1997
<S> <C> <C>
Assets:
Investments, at value (identified cost -- $324,997,003) (Note 1a) $324,997,003
Cash 250,090
Interest receivable 2,222,349
Prepaid registration fees and other assets (Note 1d) 12,000
------------
Total assets 327,481,442
------------
Liabilities:
Payables:
Investment adviser (Note 2) $140,225
Distributor (Note 2) 95,429
Beneficial interest redeemed 33
Dividends to shareholders (Note 1e) 6 235,693
------------
Accrued expenses and other liabilities 72,708
------------
Total liabilities 308,401
------------
Net Assets $327,173,041
============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $32,720,460
Paid-in capital in excess of par 294,484,136
Accumulated realized capital losses -- net (Note 4) (31,555)
------------
Net Assets -- Equivalent to $1.00 per share based on 327,204,596 shares of
beneficial interest outstanding $327,173,041
============
See Notes to Finanical Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1997
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $11,053,201
Expenses:
Investment advisory fees (Note 2) $1,508,892
Distribution fees (Note 2) 372,783
Transfer agent fees (Note 2) 56,924
Professional fees 56,297
Accounting services (Note 2) 52,081
Registration fees (Note 1d) 42,778
Custodian fees 28,467
Printing and shareholder reports 18,556
Pricing fees 12,522
Trustees' fees and expenses 2,719
Amortization of organization expenses (Note 1d) 598
Other 4,058
------------
Total expenses 2,156,675
------------
Investment income -- net 8,896,526
------------
Net Increase in Net Assets Resulting from Operations $8,896,526
============
See Notes to Finanical Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the Year Ended
March 31,
1997 1996
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income -- net $8,896,526 $8,285,646
------------- -------------
Net increase in net assets resulting from operations 8,896,526 8,285,646
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income -- net (8,896,526) (8,285,646)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (8,896,526) (8,285,646)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,162,499,097 1,007,207,668
Net asset value of shares issued to shareholders in reinvestment
of dividends (Note 1e) 8,896,416 8,285,698
------------- -------------
1,171,395,513 1,015,493,366
Cost of shares redeemed (1,126,409,501) (970,961,402)
------------- -------------
Net increase in net assets derived from beneficial interest transactions 44,986,012 44,531,964
------------- -------------
Net Assets:
Total increase in net assets 44,986,012 44,531,964
Beginning of year 282,187,029 237,655,065
------------- -------------
End of year $327,173,041 $282,187,029
============= =============
See Notes to Finanical Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA OHIO MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended March 31,
1997 1996 1995 1994 1993
Increase (Decrease) in Net Asset Value:
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
-------- -------- -------- -------- --------
Investment income -- net .03 .03 .03 .02 .02
-------- -------- -------- -------- --------
Total from investment operations .03 .03 .03 .02 .02
-------- -------- -------- -------- --------
Less dividends from investment income -- net (.03) (.03) (.03) (.02) (.02)
-------- -------- -------- -------- --------
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total Investment Return 2.99% 3.27% 2.65% 1.88% 2.27%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses .71% .73% .74% .72% .74%
======== ======== ======== ======== ========
Investment income -- net 2.94% 3.21% 2.64% 1.86% 2.24%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) $327,173 $282,187 $237,655 $213,655 $187,344
======== ======== ======== ======== ========
See Notes to Financial Statements.
</TABLE>
CMA New Jersey 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 and distributions to shareholders -- The Fund declares
dividends daily and reinvests daily such dividends (net of non-resident
alien tax and back-up withholding 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.
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., Inc. ("ML & Co."), which is the limited partner.
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.
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.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, PSI, MLFDS, 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, 1997, the Fund had a net capital loss carryforward of
approximately $32,000, of which $23,000 expires in 2000, $5,000 expires
in 2001 and $4,000 expires in
2002. This amount will be available to offset like amounts of any future
taxable gains.
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, 1997, 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 each of the years in the five-year period
then ended. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and the 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
the 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, 1997 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, 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, 1997, 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 LLP
Princeton, New Jersey
May 7, 1997
Important Tax Information (unaudited)
All of the net investment income distributions paid daily by CMA Ohio
Municipal Money Fund of CMA Multi-State Municipal Series Trust during
its taxable year ended March 31, 1997 qualify as tax-exempt interest
dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund during
the year.
Please retain this information for your records.
