Cash Trust Series N-CSR Certified annual shareholder report (management investment company)

                               United States
                    Securities and Exchange Commission
                          Washington, D.C. 20549

                                Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies




                                 811-5843

                   (Investment Company Act File Number)


                          Cash Trust Series, Inc.
      _______________________________________________________________

            (Exact Name of Registrant as Specified in Charter)


                         Federated Investors Funds
                           5800 Corporate Drive
                    Pittsburgh, Pennsylvania 15237-7000


                              (412) 288-1900
                      (Registrant's Telephone Number)


                        John W. McGonigle, Esquire
                         Federated Investors Tower
                            1001 Liberty Avenue
                    Pittsburgh, Pennsylvania 15222-3779
                  (Name and Address of Agent for Service)
             (Notices should be sent to the Agent for Service)






                     Date of Fiscal Year End: 5/31/03


            Date of Reporting Period: Fiscal year ended 5/31/03










Item 1.     Reports to Stockholders

Federated Investors
World-Class Investment Manager

Government Cash Series

A Portfolio of Cash Trust Series, Inc.

ANNUAL SHAREHOLDER REPORT

May 31, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

INDEPENDENT AUDITORS' REPORT

BOARD OF DIRECTORS AND CORPORATION OFFICERS

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Financial Highlights

(For a Share Outstanding Throughout Each Period)

Year Ended May 31	2003		2002		2001		2000		1999
Net Asset Value, Beginning of Period	$1.00		$1.00		$1.00		$1.00		$1.00
Income From Investment Operations:
Net investment income	0.01		0.02		0.05		0.05		0.04
Less Distributions:
Distributions from net investment income	(0.01	)	(0.02	)	(0.05	)	(0.05	)	(0.04	)
Net Asset Value, End of Period	$1.00		$1.00		$1.00		$1.00		$1.00
Total Return1	0.58	%	1.75	%	5.18	%	4.65	%	4.30	%
Ratios to Average Net Assets:
Expenses	1.05	%	1.05	%	1.04	%	1.01	%	1.00	%
Net investment income	0.59	%	1.74	%	4.96	%	4.54	%	4.22	%
Expense waiver/reimbursement2	0.04	%	0.01	%	0.02	%	0.10	%	0.12	%
Supplemental Data:
Net assets, end of period (000 omitted)	$590,024		$663,299		$785,978		$582,519		$649,081

1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

2 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

May 31, 2003

Principal Amount					Value
			U.S. GOVERNMENT AGENCIES--41.7%
$	8,000,000	1	Federal Farm Credit System Floating Rate Notes, 1.185%, 6/9/2003	$	7,996,914
	9,000,000	2	Federal Home Loan Bank System Discount Notes, 1.150% - 1.230%, 8/15/2003 - 11/7/2003		8,964,354
	68,000,000	1	Federal Home Loan Bank System Floating Rate Notes, 1.089% - 1.310%, 6/2/2003 - 7/7/2003		67,986,986
	26,000,000		Federal Home Loan Bank System Notes, 1.250% - 3.750%, 6/20/2003 - 6/18/2004		26,082,723
	10,000,000	2	Federal Home Loan Mortgage Corp. Discount Notes, 1.155% - 1.240%, 7/30/2003 - 9/30/2003		9,974,128
	8,500,000		Federal Home Loan Mortgage Corp. Notes, 5.250% - 6.375%, 11/15/2003 - 2/15/2004		8,676,954
	39,000,000	2	Federal National Mortgage Association Discount Notes, 1.140% - 1.250%, 7/23/2003 - 11/19/2003		38,846,537
	54,000,000	1	Federal National Mortgage Association Floating Rate Notes, 1.130% - 1.168%, 6/9/2003 - 8/1/2003		53,989,298
	19,500,000		Federal National Mortgage Association Notes, 1.300% - 5.125%, 2/13/2004 - 6/28/2004		19,592,152
	4,000,000	1	Student Loan Marketing Association Floating Rate Notes, 1.150%, 7/25/2003		3,998,869
			TOTAL U.S. GOVERNMENT AGENCIES		246,108,915
			REPURCHASE AGREEMENTS--59.0%
	26,000,000		Interest in $830,000,000 joint repurchase agreement with BNP Paribas Securities Corp., 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 11/15/2010		26,000,000
	26,000,000		Interest in $1,500,000,000 joint repurchase agreement with Banc of America LLC, 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 6/1/2033		26,000,000
	26,000,000		Interest in $1,150,000,000 joint repurchase agreement with Banc One Capital Markets, Inc., 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 5/1/2033		26,000,000
	37,283,000		Interest in $1,742,000,000 joint repurchase agreement with Barclays Capital, Inc., 1.280%, dated 5/30/2003, to be repurchased at $37,286,977 on 6/2/2003, collateralized by U.S. Treasury Bonds with various maturities to 5/15/2030		37,283,000
	26,000,000		Interest in $800,000,000 joint repurchase agreement with Countrywide Securities Corp., 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 4/25/2033		26,000,000
	26,000,000		Interest in $600,000,000 joint repurchase agreement with Greenwich Capital Markets, Inc., 1.360%, dated 5/30/2003, to be repurchased at $26,002,947 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 6/25/2033		26,000,000
Principal Amount					Value
			REPURCHASE AGREEMENTS--continued
$	26,000,000		Interest in $500,000,000 joint repurchase agreement with Greenwich Capital Markets, Inc., 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 5/25/2033	$	26,000,000
	26,000,000		Interest in $500,000,000 joint repurchase agreement with J.P. Morgan Securities, Inc., 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 6/25/2033		26,000,000
	26,000,000		Interest in $400,000,000 joint repurchase agreement with Morgan Stanley & Co., Inc., 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 1/15/2033		26,000,000
	9,000,000	3	Interest in $400,000,000 joint repurchase agreement with UBS Warburg LLC, 1.240%, dated 5/8/2003, to be repurchased at $9,014,880 on 6/25/2003, collateralized by U.S. Government Agency Obligations with various maturities to 1/15/2033		9,000,000
	12,000,000	3	Interest in $375,000,000 joint repurchase agreement with UBS Warburg LLC, 1.310%, dated 5/29/2003, to be repurchased at $12,003,057 on 6/5/2003, collateralized by U.S. Government Agency Obligations with various maturities to 5/25/2029		12,000,000
	30,000,000		Interest in $2,500,000,000 joint repurchase agreement with UBS Warburg LLC, 1.370%, dated 5/30/2003, to be repurchased at $30,003,425 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 6/25/2033		30,000,000
	26,000,000		Interest in $1,000,000,000 joint repurchase agreement with Wachovia Securities, Inc., 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 6/1/2033		26,000,000
	26,000,000		Interest in $525,000,000 joint repurchase agreement with WestLB AG, 1.370%, dated 5/30/2003, to be repurchased at $26,002,968 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 1/1/2042		26,000,000
			TOTAL REPURCHASE AGREEMENTS		348,283,000
			TOTAL INVESTMENTS--100.7% (AT AMORTIZED COST)4		594,391,915
			OTHER ASSETS AND LIABILITIES -- NET--(0.7)%		(4,367,789	)
			TOTAL NET ASSETS--100%	$	590,024,126

1 Denotes variable rate securities which show current rate and next demand date.

2 These issues show the rate of discount at the time of purchase.

3 Although final maturity falls beyond seven days, a liquidity feature is included in each transaction to permit termination of the repurchase agreement within seven days.

4 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at May 31, 2003.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

May 31, 2003

Assets:
Investments in repurchase agreements	$	348,283,000
Investments in securities		246,108,915
Total investments in securities, at amortized cost and value			$	594,391,915
Cash				495
Income receivable				465,586
Receivable for shares sold				1,925,141
TOTAL ASSETS				596,783,137
Liabilities:
Payable for investments purchased		3,000,000
Payable for shares redeemed		3,494,199
Payable for transfer and dividend disbursing agent fees and expenses		13,840
Payable for directors'/trustees' fees		208
Payable for portfolio accounting fees		9,096
Payable for distribution services fee		49,076
Payable for shareholder services fee		122,691
Income distribution payable		58,390
Accrued expenses		11,511
TOTAL LIABILITIES				6,759,011
Net assets for 590,024,347 shares outstanding			$	590,024,126
Net Assets Consist of:
Paid in capital			$	590,024,347
Distributions in excess of net investment income				(221	)
TOTAL NET ASSETS			$	590,024,126
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$590,024,126 ÷ 590,024,347 shares outstanding				$1.00

See Notes which are an integral part of the Financial Statements

Statement of Operations

Year Ended May 31, 2003

Investment Income:
Interest							$	11,569,581
Expenses:
Investment adviser fee				$	3,509,173
Administrative personnel and services fee					527,780
Custodian fees					48,825
Transfer and dividend disbursing agent fees and expenses					767,253
Directors'/Trustees' fees					7,852
Auditing fees					12,342
Legal fees					5,206
Portfolio accounting fees					106,817
Distribution services fee					701,835
Shareholder services fee					1,754,587
Share registration costs					137,838
Printing and postage					60,127
Insurance premiums					2,224
Taxes					66,365
Miscellaneous					3,232
TOTAL EXPENSES					7,711,456
Waivers:
Waiver of investment adviser fee	$	(271,319	)
Waiver of transfer and dividend disbursing agent fees and expenses		(36,483	)
TOTAL WAIVERS					(307,802	)
Net expenses								7,403,654
Net investment income							$	4,165,927

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Year Ended May 31		2003			2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	4,165,927		$	13,794,259
Distributions to Shareholders:
Distributions from net investment income		(4,166,148	)		(13,794,259	)
Share Transactions:
Proceeds from sale of shares		2,421,603,767			2,658,275,523
Net asset value of shares issued to shareholders in payment of distributions declared		3,562,193			12,172,152
Cost of shares redeemed		(2,498,440,447	)		(2,793,126,877	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(73,274,487	)		(122,679,202	)
Change in net assets		(73,274,708	)		(122,679,202	)
Net Assets:
Beginning of period		663,298,834			785,978,036
End of period (including distributions in excess of net investment income of $(221) and $0, respectively)	$	590,024,126		$	663,298,834

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

May 31, 2003

ORGANIZATION

Cash Trust Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Corporation consists of four portfolios. The financial statements included herein are only those of Government Cash Series (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is to provide current income consistent with stability of principal and liquidity.

SIGNIFICANT ACOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP").

Investment Valuation

The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Directors (the "Directors"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date.

Premium and Discount Amortization

All premiums and discounts are amortized/accreted.

Federal Taxes

It is the Fund's policy to comply with the subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2003, there were 12,500,000,000 par value shares ($0.001 per share) authorized. Capital paid-in aggregated $590,024,347. Transactions in capital stock were as follows:

Year Ended May 31	2003		2002
Shares sold	2,421,603,767		2,658,275,523
Shares issued to shareholders in payment of distributions declared	3,562,193		12,172,152
Shares redeemed	(2,498,440,447	)	(2,793,126,877	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(73,274,487	)	(122,679,202	)

FEDERAL TAX INFORMATION

The tax character of distributions reported on the Statement of Changes in Net Assets the years ended May 31, 2003 and 2002, was as follows:

	2003	2002
Ordinary income	$4,166,148	$13,794,259

As of May 31, 2003, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income $58,170

OTHER TAXES

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.50% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.150% to 0.075% of average aggregate daily net assets of all Funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will reimburse Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Shares. The Plan provides that the Fund may incur distribution expenses up to 0.35% of the average daily net assets of the Fund, annually, to reimburse FSC.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets annually, plus out-of-pocket expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

Independent Auditors' Report

TO THE BOARD OF DIRECTORS OF CASH TRUST SERIES, INC. AND SHAREHOLDERS OF GOVERNMENT CASH SERIES:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Government Cash Series (the "Fund") (a portfolio of the Cash Trust Series, Inc.) as of May 31, 2003, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to provide 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 the securities owned at May 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. 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 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 the Fund as of May 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts
July 11, 2003

Board of Directors and Corporation Officers

The following table gives information about each Board member and the senior officers of the Fund. The tables separately list Board members who are "interested persons" of the Fund (i.e., "Interested" Board members) and those who are not (i.e., "Independent" Board members). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA. The Federated Fund Complex consists of 138 investment company portfolios. Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Board member: oversees all portfolios in the Federated Fund Complex; serves for an indefinite term; and also serves as a Board member of the following investment company complexes: Banknorth Funds--four portfolios; Regions Morgan Keegan Select Funds--nine portfolios; Riggs Funds--eight portfolios; WesMark Funds--five portfolios; and Golden Oak® Family of Funds--seven portfolios. The Fund's Statement of Additional Information includes additional information about Corporation Directors and is available, without charge and upon request, by calling 1-800-341-7400.

INTERESTED DIRECTORS BACKGROUND

Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
John F. Donahue* Birth Date: July 28, 1924 CHAIRMAN AND DIRECTOR Began serving: May 1989	Principal Occupations: Chairman and Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.
J. Christopher Donahue* Birth Date: April 11, 1949 PRESIDENT AND DIRECTOR Began serving: May 1989	Principal Occupations: Principal Executive Officer and President of the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief Executive Officer and Director, Federated Investors, Inc.
Lawrence D. Ellis, M.D.* Birth Date: October 11, 1932 3471 Fifth Avenue Suite 1111 Pittsburgh, PA DIRECTOR Began serving: May 1989	Principal Occupations: Director or Trustee of the Federated Fund Complex; Professor of Medicine, University of Pittsburgh; Medical Director, University of Pittsburgh Medical Center Downtown; Hematologist, Oncologist and Internist, University of Pittsburgh Medical Center. Other Directorships Held: Member, National Board of Trustees, Leukemia Society of America. Previous Positions: Trustee, University of Pittsburgh; Director, University of Pittsburgh Medical Center.

* Family relationships and reasons for "interested" status: John F. Donahue is the father of J. Christopher Donahue; both are "interested" due to the positions they hold with Federated Investors, Inc. and its subsidiaries. Lawrence D. Ellis, M.D. is "interested" because his son-in-law is employed by the Fund's principal underwriter, Federated Securities Corp.

INDEPENDENT DIRECTORS BACKGROUND

Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
Thomas G. Bigley Birth Date: February 3, 1934 15 Old Timber Trail Pittsburgh, PA DIRECTOR Began serving: November 1994	Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director, Member of Executive Committee, Children's Hospital of Pittsburgh; Director, University of Pittsburgh. Previous Position: Senior Partner, Ernst & Young LLP.
John T. Conroy, Jr. Birth Date: June 23, 1937 Grubb & Ellis/Investment Properties Corporation 3838 North Tamiami Trail Suite 402 Naples, FL DIRECTOR Began serving: August 1991	Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman of the Board, Investment Properties Corporation; Partner or Trustee in private real estate ventures in Southwest Florida. Previous Positions: President, Investment Properties Corporation; Senior Vice President, John R. Wood and Associates, Inc., Realtors; President, Naples Property Management, Inc. and Northgate Village Development Corporation.
Nicholas P. Constantakis Birth Date: September 3, 1939 175 Woodshire Drive Pittsburgh, PA DIRECTOR Began serving: February 1998	Principal Occupations: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director and Member of the Audit Committee, Michael Baker Corporation (engineering and energy services worldwide). Previous Position: Partner, Andersen Worldwide SC.
John F. Cunningham Birth Date: March 5, 1943 353 El Brillo Way Palm Beach, FL DIRECTOR Began serving: January 1999	Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc.
Peter E. Madden Birth Date: March 16, 1942 One Royal Palm Way 100 Royal Palm Way Palm Beach, FL DIRECTOR Began serving: August 1991	Principal Occupation: Director or Trustee of the Federated Fund Complex; Management Consultant. Other Directorships Held: Board of Overseers, Babson College. Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange.
Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 80 South Road Westhampton Beach, NY DIRECTOR Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant; Executive Vice President, DVC Group, Inc. (marketing communications and technology) (prior to 9/1/00). Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University.
John E. Murray, Jr., J.D., S.J.D. Birth Date: December 20, 1932 Chancellor, Duquesne University Pittsburgh, PA DIRECTOR Began serving: February 1995	Principal Occupations: Director or Trustee of the Federated Fund Complex; Chancellor and Law Professor, Duquesne University; Consulting Partner, Mollica & Murray. Other Directorships Held: Director, Michael Baker Corp. (engineering, construction, operations and technical services). Previous Positions: President, Duquesne University; Dean and Professor of Law, University of Pittsburgh School of Law; Dean and Professor of Law, Villanova University School of Law.
Marjorie P. Smuts Birth Date: June 21, 1935 4905 Bayard Street Pittsburgh, PA DIRECTOR Began serving: May 1989	Principal Occupations: Director or Trustee of the Federated Fund Complex; Public Relations/Marketing Consultant/Conference Coordinator. Previous Positions: National Spokesperson, Aluminum Company of America; television producer; President, Marj Palmer Assoc.; Owner, Scandia Bord.
John S. Walsh Birth Date: November 28, 1957 2604 William Drive Valparaiso, IN DIRECTOR Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Previous Position: Vice President, Walsh & Kelly, Inc.

OFFICERS

Name Birth Date Positions Held with Corporation Date Service Began	Principal Occupation(s) and Previous Position(s)
Edward C. Gonzales Birth Date: October 22, 1930 EXECUTIVE VICE PRESIDENT Began serving: June 1995	Principal Occupations: Executive Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Trustee, Federated Administrative Services. Previous Positions: President and Trustee or Director of some of the Funds in the Federated Fund Complex; CEO and Chairman, Federated Administrative Services.
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Began serving: June 1995	Principal Occupations: Executive Vice President and Secretary of the Federated Fund Complex; Executive Vice President, Secretary and Director, Federated Investors, Inc.
Richard J. Thomas Birth Date: June 17, 1954 TREASURER Began serving: November 1998	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services.
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Began serving: August 2002	Principal Occupations: Vice Chairman or President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc. and Director and Chief Executive Officer, Federated Securities Corp.
William D. Dawson III Birth Date: March 3, 1949 CHIEF INVESTMENT OFFICER Began serving: November 1998	Principal Occupations: Chief Investment Officer of this Fund and various other Funds in the Federated Fund Complex; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp., Federated Investment Management Company and Passport Research, Ltd. Previous Positions: Executive Vice President and Senior Vice President, Federated Investment Counseling Institutional Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.
Name Birth Date Positions Held with Corporation Date Service Began	Principal Occupation(s) and Previous Position(s)
Deborah A. Cunningham Birth Date: September 15, 1959 VICE PRESIDENT Began serving: November 1998	Deborah A. Cunningham has been the Fund's Portfolio Manager since August 1989. She is Vice President of the Corporation. Ms. Cunningham joined Federated in 1981 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1997. Ms. Cunningham served as a Portfolio Manager and a Vice President of the Adviser from 1993 through 1996. Ms. Cunningham is a Chartered Financial Analyst and received her M.S.B.A. in Finance from Robert Morris College.
Mary Jo Ochson Birth Date: September 12, 1953 VICE PRESIDENT Began serving: November 1998	Mary Jo Ochson is Vice President of the Corporation. Ms. Ochson joined Federated in 1982 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1996. From 1988 through 1995, Ms. Ochson served as a Portfolio Manager and a Vice President of the Fund's Adviser. Ms. Ochson is a Chartered Financial Analyst and received her M.B.A. in Finance from the University of Pittsburgh.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.

Federated Investors
World-Class Investment Manager

Government Cash Series
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 147551204

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

28564 (7/03)

Federated Investors
World-Class Investment Manager

Municipal Cash Series

A Portfolio of Cash Trust Series, Inc.

ANNUAL SHAREHOLDER REPORT

May 31, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

INDEPENDENT AUDITORS' REPORT

BOARD OF DIRECTORS AND CORPORATION OFFICERS

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Financial Highlights

(For a Share Outstanding Throughout Each Period)

Year Ended May 31	2003			2002			2001			2000			1999
Net Asset Value, Beginning of Period	$1.00			$1.00			$1.00			$1.00			$1.00
Income From Investment Operations:
Net investment income	0.01			0.01			0.03			0.03			0.03
Less Distributions:
Distributions from net investment income	(0.01	)		(0.01	)		(0.03	)		(0.03	)		(0.03	)
Net Asset Value, End of Period	$1.00			$1.00			$1.00			$1.00			$1.00
Total Return1	0.51	%		1.20	%		3.21	%		2.92	%		2.58	%
Ratios to Average Net Assets:
Expenses	1.05	%		1.05	%		1.04	%		1.02	%		1.01	%
Net investment income	0.52	%		1.16	%		3.16	%		2.87	%		2.57	%
Expense waiver/reimbursement2	0.07	%		0.05	%		0.03	%		0.07	%		0.12	%
Supplemental Data:
Net assets, end of period (000 omitted)	$426,684		$538,236			$508,523			$430,365			$437,451

1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

2 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

May 31, 2003

Principal Amount				Value
			SHORT-TERM MUNICIPALS--99.6%1
			Alabama--3.0%
$	3,196,000		Birmingham, AL IDA, IDRB's, (Series 1999), Weekly VRDNs (Glasforms, Inc.)/(Comerica Bank - California LOC)	$	3,196,000
	4,500,000		Gadsden, AL IDB, IDRB's, (Series 1997), Weekly VRDNs (Chicago Steel (Alabama) LLC)/(Marshall & Ilsley Bank, Milwaukee LOC)		4,500,000
	5,000,000		St. Clair County, AL IDB, (Series 1993), Weekly VRDNs (Ebsco Industries, Inc.)/(National Australia Bank Ltd., Melbourne LOC)		5,000,000
			TOTAL		12,696,000
			Alaska--0.7%
	3,000,000		Valdez, AK Marine Terminal, (1994 Series C), 2.00% TOBs (Phillips Transportation Alaska, Inc.)/(ConocoPhillips GTD), Optional Tender 1/1/2004		3,008,616
			Arizona--3.7%
	2,500,000		Apache County, AZ, IDA, (Series 1983B), Weekly VRDNs (Tucson Electric Power Co.)/(Bank of New York LOC)		2,500,000
	725,000		Arizona Health Facilities Authority, (Series 2002), Weekly VRDNs (Royal Oaks Life Care Community)/(Lasalle Bank, N.A. LOC)		725,000
	1,100,000		Arizona Health Facilities Authority, Pooled Loan Program Revenue Bonds (Series 1985B), Weekly VRDNs (FGIC INS)/(JPMorgan Chase Bank LIQ)		1,100,000
	790,000		Chandler, AZ, IDA, Weekly VRDNs (SMP II LP)/(Bank One N.A. (Chicago) LOC)		790,000
	6,000,000		Maricopa County, AZ, IDA, San Miguel Apartments (Series 2002), 1.72% TOBs (Transamerica Life Insurance and Annuity Co.), Mandatory Tender 7/15/2003		6,000,000
	2,050,000		Pima County, AZ, IDA, (Series 2000A), Weekly VRDNs (Broadway Proper Congregate)/(State Street Bank and Trust Co. LOC)		2,050,000
	1,145,000		Sierra Vista, AZ, IDA, (Series 2001A)/(Mountain Steppes Apartments), Weekly VRDNs (Mountain Steppes Properties LLC)/(Federal National Mortgage Association LOC)		1,145,000
	1,250,000		Tempe, AZ, IDA, (Series 2002C), Weekly VRDNs (Friendship Village of Tempe)/(Lasalle Bank, N.A. LOC)		1,250,000
			TOTAL		15,560,000
			Arkansas--3.1%
	2,050,000		Arkansas Development Finance Authority, (Series B), Weekly VRDNs (Riceland Foods, Inc.)/(SunTrust Bank LOC)		2,050,000
	1,000,000		Arkansas Development Finance Authority, (Series 1999C), Weekly VRDNs (Riceland Foods, Inc.)/(BNP Paribas SA LOC)		1,000,000
	1,000,000		Arkansas Development Finance Authority, (Series 1999D), Weekly VRDNs (Riceland Foods, Inc.)/(BNP Paribas SA LOC)		1,000,000
	2,100,000		Blytheville, AR, (Series 1998), Weekly VRDNs (Nucor Corp.)		2,100,000
	6,500,000		Blytheville, AR, (Series 2002), Weekly VRDNs (Nucor Corp.)		6,500,000
	645,000		Clark County, AR, (Series 2003), Weekly VRDNs (Alcoa, Inc.)		645,000
			TOTAL		13,295,000
Principal Amount				Value
			SHORT-TERM MUNICIPALS--continued1
			California--3.4%
$	10,000,000		California State, (Series B), 2.50% RANs, 6/27/2003	$	10,005,734
	1,500,000		California State, (Series D), VRNs, 6/27/2003		1,500,000
	1,500,000		California Statewide Communities Development Authority, (Series 2001B), 1.70% TOBs (Kaiser Permanente), Optional Tender 7/1/2003		1,500,000
	1,467,716	2	PBCC LeaseTOPS Trust (California Non-AMT) (Series 1998-1), 1.90% TOBs (AMBAC INS)/(Pitney Bowes Credit Corp. LIQ) 8/10/2003		1,467,716
			TOTAL		14,473,450
			Colorado--2.1%
	2,750,000		Adams County, CO IDB, (Series 1993), Weekly VRDNs (Bace Manufacturing, Inc.)/(WestLB AG LOC)		2,750,000
	825,000		Colorado HFA, (Series 2000B), Weekly VRDNs (New Belgium Brewing Co., Inc.)/(Wells Fargo Bank, N.A. LOC)		825,000
	5,500,000		Denver, CO City & County Airport Authority, (PT-782), Weekly VRDNs (FGIC INS)/(Merrill Lynch & Co., Inc. LIQ)		5,500,000
			TOTAL		9,075,000
			District of Columbia--0.7%
	2,765,000		District of Columbia HFA, Roaring Forks Certificates, (Series 2000-23), Weekly VRDNs (GNMA COL)/(Bank of New York LIQ)		2,765,000
			Florida--1.2%
	5,000,000		Greater Orlando, FL Aviation Authority, Weekly VRDNs (Cessna Aircraft Co.)/(Textron, Inc. GTD)		5,000,000
			Georgia--0.9%
	2,000,000	2	Atlanta, GA, Airport Revenue, (PA-916R), 1.70% TOBs (FGIC INS)/(Merrill Lynch & Co., Inc. LIQ), Optional Tender 10/9/2003		2,000,000
	2,000,000		Municipal Electric Authority of Georgia, (Series 1994D), Weekly VRDNs (FSA INS)/(Dexia Credit Local LIQ)		2,000,000
			TOTAL		4,000,000
			Illinois--8.2%
	5,000,000		Chicago, IL, (Series 2000C), 1.60% TOBs (Peoples Gas Light & Coke Co.), Optional Tender 7/7/2003		5,000,000
	8,000,000		Chicago, IL, Gas Supply Revenue, (Series 1993 -B), 1.45% CP (Peoples Gas Light & Coke Co.), Mandatory Tender 8/6/2003		8,000,000
	3,000,000		Illinois Development Finance Authority, (Series 2002), Weekly VRDNs (Kasbergen Family Living Trust)/(Wells Fargo Bank, N.A. LOC)		3,000,000
	6,000,000		Illinois Development Finance Authority, IDB, (Series 1997), Weekly VRDNs (Tempco Electric Heater Corp.)/(Bank One N.A. (Chicago) LOC)		6,000,000
	3,940,000		Illinois Development Finance Authority, IDB, (Series 2000A), Weekly VRDNs (Demar, Inc.)/(Firstar Bank, N.A. LOC)		3,940,000
	2,630,000		Illinois Development Finance Authority, IDB, Adjustable Rate IDRB, (Series 1996A), Weekly VRDNs (Nimlok Co.)/(Bank One, Illinois N.A. LOC)		2,630,000
	6,280,000	2	University of Illinois, MERLOTS (Series 2001-A88), 1.55% TOBs (AMBAC INS)/(Wachovia Bank N.A. LIQ), Optional Tender 11/12/2003		6,280,000
			TOTAL		34,850,000
Principal Amount				Value
			SHORT-TERM MUNICIPALS--continued1
			Indiana--4.6%
$	1,180,000		Carmel, IN, (Series 1996-A), Weekly VRDNs (Telamon Corp.)/(Huntington National Bank, Columbus, OH LOC)	$	1,180,000
	1,310,000		Carmel, IN, (Series 1999), Weekly VRDNs (Telamon Corp.)/(Huntington National Bank, Columbus, OH LOC)		1,310,000
	2,020,000		Huntingburg, IN, (Series 1994), Weekly VRDNs (DMI Furniture, Inc.)/(Bank One, Indiana N.A. LOC)		2,020,000
	2,230,000		Huntingburg, IN, EDRB, (Series 1993), Weekly VRDNs (DMI Furniture, Inc.)/(Bank One, Indiana N.A. LOC)		2,230,000
	1,215,000		Indiana Development Finance Authority, (Series 1996), Weekly VRDNs (Meridian Group LLC Project)/(Bank One, Indiana N.A. LOC)		1,215,000
	1,500,000		Indiana Development Finance Authority, (Series 2002 EDRB), Weekly VRDNs (Vreba-Hoff Dairy Leasing LLC)/(Northern Trust Co., Chicago, IL LOC)		1,500,000
	930,000		Lebanon, IN IDA, (Series 1991), Weekly VRDNs (White Castle System)/(Bank One N.A. (Ohio) LOC)		930,000
	2,415,000		Miami County, IN, (Series 2001)/(Timberland RV Project), Weekly VRDNs (Timberlodge Real Estate LLC)/(National City Bank, Indiana LOC)		2,415,000
	2,980,000		North Manchester, IN, (Series 1997), Weekly VRDNs (Eften, Inc.)/(Comerica Bank LOC)		2,980,000
	3,761,000		Valparaiso, IN Community Schools, 2.25% TANs, 12/31/2003		3,779,390
			TOTAL		19,559,390
			Iowa--0.1%
	590,000		Iowa Finance Authority, IDRB, Weekly VRDNs (V-T Industries, Inc. Project)/(Wells Fargo Bank Minnesota N.A. LOC)		590,000
			Kansas--2.0%
	625,000		Lenexa, KS, (Series 2001), Weekly VRDNs (Irvin R. and Jeannine M. Robinson)/(Firstar Bank, N.A. LOC)		625,000
	4,285,000		Lenexa, KS, (Series 2001), Weekly VRDNs (Robbie Manufacturing, Inc.)/(Firstar Bank, N.A. LOC)		4,285,000
	3,415,000		Wyandotte County, KS, (Series 1999), Weekly VRDNs (Shor-Line)/(Firstar Bank, N.A. LOC)		3,415,000
			TOTAL		8,325,000
			Kentucky--1.4%
	1,090,000		Fort Mitchell, KY IDA, 1.55% TOBs (Motor Inn, Inc.)/(Huntington National Bank, Columbus, OH LOC), Optional Tender 11/1/2003		1,090,000
	1,400,000		Henderson County, KY, (Series 1996A), Weekly VRDNs (Gibbs Die Casting Corp.)/(Fifth Third Bank, Cincinnati LOC)		1,400,000
	1,641,000		Kenton County, KY, (Series 1999), Weekly VRDNs (Packaging Un-limited of Northern Kentucky, Inc.)/(National City Bank, Kentucky LOC)		1,641,000
	1,900,000		Winchester, KY, (Series 1990), Weekly VRDNs (Walle Corp.)/(UBS AG LOC)		1,900,000
			TOTAL		6,031,000
			Louisiana--0.6%
	2,500,000		New Orleans, LA IDB, (Series 2000), Weekly VRDNs (Home Furnishings Store)/(Bank One N.A. (Chicago) LOC)		2,500,000
Principal Amount				Value
			SHORT-TERM MUNICIPALS--continued1
			Maine--1.0%
$	4,440,000		Paris, ME, (Series 2001), Weekly VRDNs (Maine Machine Products Co.)/(Key Bank, N.A. LOC)	$	4,440,000
			Maryland--2.8%
	2,120,000		Anne Arundel County, MD, (Series 1996), Weekly VRDNs (Atlas Container Corp. Project)/(Mellon Bank N.A., Pittsburgh LOC)		2,120,000
	1,880,000		Maryland Economic Development Corp., (Series 1998A-Catterton Printing Company Facility), Weekly VRDNs (Sky II LLC)/(Manufacturers & Traders Trust Co., Buffalo, NY LOC)		1,880,000
	755,000		Maryland Economic Development Corp., (Series 1998B), Weekly VRDNs (Catterton Printing Co. Facility)/(Manufacturers & Traders Trust Co., Buffalo, NY LOC)		755,000
	925,000		Maryland State Community Development Administration, (Series 1990A), Weekly VRDNs (College Estates)/(Manufacturers & Traders Trust Co., Buffalo, NY LOC)		925,000
	1,815,000		Maryland State Community Development Administration, (Series 1990B), Weekly VRDNs (Cherry Hill Apartment Ltd.)/(Manufacturers & Traders Trust Co., Buffalo, NY LOC)		1,815,000
	2,000,000		Maryland State Community Development Administration, MERLOTS (Series 2001-B2), Weekly VRDNs (Wachovia Bank N.A. LIQ)		2,000,000
	2,500,000		Maryland State IDFA, (Series 1994), Weekly VRDNs (Johnson Controls, Inc.)		2,500,000
			TOTAL		11,995,000
			Massachusetts--1.5%
	4,830,000		Haverhill, MA, 3.00% BANs (Fleet National Bank LOC), 12/5/2003		4,867,798
	1,698,311		Haverhill, MA, 3.00% RANs (Fleet National Bank LOC), 6/12/2003		1,699,152
			TOTAL		6,566,950
			Minnesota--1.6%
	1,480,000		Brooklyn Park, MN EDA, (Series 1999), Weekly VRDNs (Midwest Finishing, Inc.)/(Wells Fargo Bank Minnesota N.A. LOC)		1,480,000
	1,700,000		Minnesota State Higher Education Coordinating Board, (Series 1992 A), Weekly VRDNs (U.S. Bank N.A., Cincinnati LIQ)		1,700,000
	590,000		Plymouth, MN, Weekly VRDNs (Nuaire, Inc.)/(Wells Fargo Bank Minnesota N.A. LOC)		590,000
	750,000		Plymouth, MN, (Series 1998), Weekly VRDNs (Nuaire, Inc.)/(Wells Fargo Bank Minnesota N.A. LOC)		750,000
	1,520,000		Red Wing, MN Port Authority, (Series 1998), Weekly VRDNs (Food Service Specialties)/(Wells Fargo Bank Minnesota N.A. LOC)		1,520,000
	795,000		White Bear, MN, Weekly VRDNs (Thermoform Plastic, Inc.)/(Bank of America N.A. LOC)		795,000
			TOTAL		6,835,000
Principal Amount				Value
			SHORT-TERM MUNICIPALS--continued1
			Mississippi--1.8%
$	2,860,000		Mississippi Business Finance Corp., (Series 1998), Weekly VRDNs (American Metal Sales, Inc.)/(Wells Fargo Bank, N.A. LOC)	$	2,860,000
	2,000,000		Mississippi Home Corp., Roaring Forks (Series 2002-16), Weekly VRDNs (GNMA COL)/(Bank of New York LIQ)		2,000,000
	2,955,000	2	Mississippi Home Corp., Roaring Forks Certificates, (Series 2001-14), 1.35% TOBs (GNMA COL)/(Bank of New York LIQ), Optional Tender 2/25/2004		2,955,000
			TOTAL		7,815,000
			Missouri--0.7%
	3,100,000		Kansas City, MO IDA, (Series 2001B), Weekly VRDNs (Ridgeview Heights Apartments)/(U.S. Bank NA, Cincinnati LOC)		3,100,000
			Multi State--11.4%
	3,781,500		BNY Municipal Certificates Trust, (Series 2002-BNY1), Weekly VRDNs (Bank of New York LIQ)/(Bank of New York LOC)		3,781,500
	3,000,000		BNY Municipal Certificates Trust, (Series 2002-BNY5), Weekly VRDNs (Bank of New York LIQ)/(Bank of New York LOC)		3,000,000
	5,000,000		Charter Mac Floater Certificates Trust I, (Nat-1 Series), Weekly VRDNs (MBIA INS)/(Bayerische Landesbank Girozentrale, Dexia Bank, Belgium, Fleet National Bank, Landesbank Baden-Wuerttemberg, State Street Bank and Trust Co. and Toronto Dominion Bank LIQs)		5,000,000
	7,000,000		Charter Mac Floater Certificates Trust I, (Nat-4 Series), Weekly VRDNs (MBIA INS)/(Bayerische Landesbank Girozentrale, Dexia Bank, Belgium, Fleet National Bank, Landesbank Baden-Wuerttemberg, State Street Bank and Trust Co. and Toronto Dominion Bank LIQs)		7,000,000
	15,288,000		Clipper Tax-Exempt Certificates Trust (AMT MultiState)/(Series 1999-3), Weekly VRDNs (State Street Bank and Trust Co. LIQ)		15,288,000
	7,265,000		Clipper Tax-Exempt Certificates Trust (AMT Multistate)/(Series 2002-09), Weekly VRDNs (AMBAC, FGIC, FSA, MBIA INS) and State Street Bank and Trust Co. LIQs)		7,265,000
	4,000,000		Clipper Tax-Exempt Certificates Trust (Multistate-AMT)/(Series 2003-01), Weekly VRDNs (Merrill Lynch & Co., Inc. LIQ)		4,000,000
	3,500,000		Clipper Tax-Exempt Certificates Trust (Multistate-AMT)/(Series 2003-03), Weekly VRDNs (GNMA COL)/(Merrill Lynch & Co., Inc. LIQ)		3,500,000
			TOTAL		48,834,500
			Nevada--1.2%
	1,000,000		Clark County, NV, Passenger Facility, Las Vegas/McCarran Intl. Airport, (Series A), 6.25% Bonds (MBIA INS), 7/1/2003		1,003,793
	4,000,000		Clark County, NV, (Series 1997A), 1.45% TOBs (Signature Flight Support Corp.)/(Bayerische Landesbank Girozentrale LOC), Optional Tender 6/2/2003		4,000,000
			TOTAL		5,003,793
			New Jersey--0.4%
	1,626,250		Beachwood, NJ, 2.75% BANs, 9/5/2003		1,631,088
			New York--2.5%
	4,780,000		Fulton, NY City School District, 2.375% RANs, 6/30/2003		4,782,892
	5,771,000		Oyster Bay, NY, (2002 Series E), 2.50% BANs, 8/22/2003		5,782,479
			TOTAL		10,565,371
Principal Amount				Value
			SHORT-TERM MUNICIPALS--continued1
			North Carolina--0.9%
$	3,905,000		Durham, NC Housing Authority Weekly VRDNs (Fayette Place Apartments)/(Bank of America N.A. LOC)	$	3,905,000
			North Dakota--1.1%
	600,000		Fargo, ND, Variable Rate Demand IDRB's, (Series 1997), Weekly VRDNs (Owen Industries, Inc.)/(Mellon Bank NA, Pittsburgh LOC)		600,000
	4,260,000		Grand Forks, ND, Variable Rate Demand IDRB's, (Series 1999), Weekly VRDNs (LM Glasfiber North Dakota, Inc.)/(Wells Fargo Bank Minnesota N.A. LOC)		4,260,000
			TOTAL		4,860,000
			Ohio--9.0%
	2,500,000		Athens, OH, 1.96% BANs, 7/17/2003		2,500,958
	2,000,000		Baberton, OH, 2.00% BANs, 12/4/2003		2,005,519
	2,000,000		Belmont County, OH, (Third Series), 1.40% BANs, 3/17/2004		2,004,063
	3,090,000		Canfield, OH, Local School District, 1.85% BANs, 9/25/2003		3,092,413
	4,500,000		Dublin, OH, Industrial Development Refunding Revenue Bonds, (Series 1997), Weekly VRDNs (Witco Corp.)/(Fleet National Bank LOC)		4,500,000
	2,725,000		Garfield Heights, OH City School District, 1.85% BANs, 1/22/2004		2,731,034
	3,760,000		Mansfield, OH, Justice Center (Series 2003), 1.70% BANs, 3/4/2004		3,774,883
	1,813,000		Maple Heights, OH City School District, 1.35% BANs, 4/30/2004		1,814,460
	3,700,000		Mason, OH, Road Improvements, 1.39% BANs, 5/27/2004		3,708,990
	2,000,000		Ohio State Water Development Authority, (Series 2002), Weekly VRDNs (PEL Technologies LLC)/(Key Bank, N.A. LOC)		2,000,000
	535,000		Ohio State, IDR, (Series 1991), Weekly VRDNs (Standby Screw, Inc.)/(National City Bank, Ohio LOC)		535,000
	1,000,000		Ohio Waste Development Authority Solid Waste, (Series 2002 A-6), Weekly VRDNs (PEL Technologies LLC)/(Key Bank, N.A. LOC)		1,000,000
	1,500,000		Orange, OH, City School District, 1.95% BANs, 7/17/2003		1,500,500
	3,125,000		Ross County, OH, Local School District, 2.00% BANs, 6/5/2003		3,125,263
	2,500,000		Summit County, OH, IDA, (Series 1999), Weekly VRDNs (Waltco Truck Equipment)/(Svenska Handelsbanken, Stockholm LOC)		2,500,000
	1,405,000		Summit County, OH IDA, (Series 2000), Weekly VRDNs (McHale Group)/(National City Bank, Ohio LOC)		1,405,000
			TOTAL		38,198,083
			Oklahoma--2.2%
	1,215,000		Adair County, OK IDA, (Series B), Weekly VRDNs (Baldor Electric Co.)/(Wachovia Bank N.A. LOC)		1,215,000
	2,000,000		Broken Arrow, OK, EDA Weekly VRDNs (Blue Bell Creameries)/(J.P. Morgan Chase Bank LOC)		2,000,000
	1,665,000		Oklahoma County, OK, Finance Authority, (Series 1996), Weekly VRDNs (Avalon Project)/(Bank One N.A. (Chicago) LOC)		1,665,000
Principal Amount				Value
			SHORT-TERM MUNICIPALS--continued1
			Oklahoma--continued
$	2,500,000		Oklahoma Development Finance Authority, (Series 2002B), Weekly VRDNs (ConocoPhillips)	$	2,500,000
	1,800,000		Oklahoma Development Finance Authority, 1.40% TOBs (Simmons Poultry Farms)/(Harris Trust & Savings Bank, Chicago LOC), Optional Tender 8/1/2003		1,800,000
			TOTAL		9,180,000
			Oregon--0.5%
	1,000,000		Oregon State, (Series 194), Weekly VRDNs (Tillamook County Creamery Association)/(BNP Paribas SA LOC)		1,000,000
	1,000,000		Oregon State, (Series 195), Weekly VRDNs (Columbia River Processing, Inc.)/(BNP Paribas SA LOC)		1,000,000
			TOTAL		2,000,000
			Pennsylvania--0.9%
	3,000,000		Erie, PA School District, 2.50% TRANs, 6/30/2003		3,002,118
	895,000		McKean County, PA, IDA, (Series 1997), Weekly VRDNs (Keystone Powdered Metal Co.)/(Mellon Bank NA, Pittsburgh LOC)		895,000
			TOTAL		3,897,118
			Rhode Island--0.9%
	3,800,000		Warwick, RI Housing Authority, (Series 2001), Daily VRDNs (Trafalgar East Apartments)/(Fleet National Bank LOC)		3,800,000
			South Carolina--2.2%
	2,200,000		Berkeley County, SC IDB Weekly VRDNs (Nucor Corp.)		2,200,000
	4,500,000		Berkeley County, SC IDB, (Series 1996A), Weekly VRDNs (Nucor Corp.)		4,500,000
	2,000,000		Berkeley County, SC IDB, (Series 1998) Weekly VRDNs (Nucor Corp.)		2,000,000
	485,000		South Carolina Jobs-EDA, EDRB, (Series 1994), Weekly VRDNs (Carolina Cotton Works, Inc. Project)/(Branch Banking & Trust Co., Winston-Salem LOC)		485,000
			TOTAL		9,185,000
			Tennessee--3.8%
	640,000		Benton County TN, IDB, (Series 1996), Weekly VRDNs (Jones Plastic and Engineering Corp.)/(National City Bank, Kentucky LOC)		640,000
	850,000		Chattanooga, TN, IDB, Industrial Development Variable Rate Demand Revenue Bonds (Series 1997), Weekly VRDNs (JRB Co., Inc.)/(National City Bank, Ohio LOC)		850,000
	1,215,000		Chattanooga, TN, IDB, Revenue Bonds, (Series 1997), Weekly VRDNs (TB Wood's Inc. Project)/(PNC Bank, N.A. LOC)		1,215,000
	1,800,000		Franklin County, TN IDB, (Series 1997), Weekly VRDNs (Hi-Tech)/(Regions Bank, Alabama LOC)		1,800,000
	275,000		Hamilton County, TN, IDB Weekly VRDNs (Pavestone Co.)/(Bank One N.A. (Chicago) LOC)		275,000
	2,600,000		Jackson, TN, IDB, (Series 1999), Weekly VRDNs (Bobrick Washroom Equipment)/(Amsouth Bank N.A., Birmingham LOC)		2,600,000
	350,000		Knox County, TN, IDB, (Series 1996), Weekly VRDNs (Health Ventures, Inc.)/(SunTrust Bank LOC)		350,000
Principal Amount				Value
			SHORT-TERM MUNICIPALS--continued1
			Tennessee--continued
$	7,200,000		Roane, TN, IDB, (Series 1982), Monthly VRDNs (Fortafil Fibers, Inc. Project)/(ABN AMRO Bank NV, Amsterdam LOC)	$	7,200,000
	1,370,000		Tennessee Housing Development Agency, (Series PG-2A), 4.55% Bonds, 7/1/2003		1,372,952
			TOTAL		16,302,952
			Texas--10.2%
	3,000,000	2	Austin, TX, MERLOTS (Series 2000-A26), 1.50% TOBs (MBIA INS)/(Wachovia Bank N.A. LIQ), Optional Tender 11/12/2003		3,000,000
	4,950,000		Brazos River Authority, TX, Trust Receipts, (Series 2002 FR/RI F-1), Weekly VRDNs (TXU Energy)/(Bank of New York SWP)		4,950,000
	3,000,000		Dallas-Fort Worth, TX, International Airport, (PA-1146R), Weekly VRDNs (MBIA INS)/(Merrill Lynch & Co., Inc. LIQ)		3,000,000
	8,000,000		Dallas-Fort Worth, TX, International Airport, Roaring Forks, (Series 2003-4), Weekly VRDNs (FSA, MBIA INS) and Bank of New York LIQs)		8,000,000
	5,000,000		Port Arthur Navigation District, TX, IDC, (Series 2000), Weekly VRDNs (Air Products & Chemicals, Inc.)		5,000,000
	5,000,000		Port Arthur Navigation District, TX, IDC, (Series 2001), Weekly VRDNs (Air Products & Chemicals, Inc.)		5,000,000
	3,000,000	2	Sabine River Authority, TX, Clippers (Series 2001-2), 1.30% TOBs (Southwestern Electric Power Co.)/(MBIA INS)/(State Street Bank and Trust Co. LIQ), Optional Tender 9/11/2003		3,000,000
	1,540,000		Tarrant County, TX, IDC, Weekly VRDNs (Holden Business Forms)/(Wells Fargo Bank Minnesota N.A. LOC)		1,540,000
	5,082,000	2	Texas State Department of Housing & Community Affairs, Clippers (Series 2001-1), 1.35% TOBs (GNMA COL)/(State Street Bank and Trust Co. LIQ), Optional Tender 9/11/2003		5,082,000
	5,000,000		Texas State, 2.75% TRANs, 8/29/2003		5,018,243
			TOTAL		43,590,243
			Utah--0.9%
	4,000,000		West Jordan, UT, (Series 1999), Weekly VRDNs (Penco Products, Inc.)/(Key Bank, N.A. LOC)		4,000,000
			Virginia--2.0%
	2,500,000		Campbell County, VA, IDA, Weekly VRDNs (Georgia-Pacific Corp.)/(Bank of America N.A. LOC)		2,500,000
	4,000,000		Halifax, VA, IDA, MMMs, PCR (Series 1992), 1.45% CP (Virginia Electric & Power Co.), Mandatory Tender 6/11/2003		4,000,000
	1,000,000		Portsmouth, VA, Redevelopment and Housing Authority, (Series 2000), Weekly VRDNs (Yorkshire Square Townhouse Apartments)/(SunTrust Bank LOC)		1,000,000
	985,000		Virginia Resources Authority, Water and Sewer, (Series 1997), Weekly VRDNs (Henrico County, VA)/(SunTrust Bank LIQ)		985,000
			TOTAL		8,485,000
Principal Amount				Value
			SHORT-TERM MUNICIPALS--continued1
			Washington--2.1%
$	5,330,000	2	Clark County, WA Public Utilities District No. 001, MERLOTS, (Series 2001-A116), 1.55% TOBs (FSA INS)/(Wachovia Bank N.A. LIQ), Optional Tender 11/12/2003	$	5,330,000
	3,590,000		Port of Seattle, WA, Floater Certificates, (Series 2001-802), Weekly VRDNs (FGIC INS)/(Morgan Stanley LIQ)		3,590,000
			TOTAL		8,920,000
			West Virginia--0.0%
	5,000		South Charleston, WV, PT-1637, Weekly VRDNs (Southmoor Apartments)/(Merrill Lynch & Co., Inc. LIQ)/(Merrill Lynch & Co., Inc. LOC)		5,000
			Wisconsin--2.3%
	4,015,000		Lawrence, WI, Weekly VRDNs (TPF Futures/Robinson Metals, Inc.)/(Marshall & Ilsley Bank, Milwaukee LOC)		4,015,000
	965,000		Marshfield, WI, (Series 1993), Weekly VRDNs (Building Systems, Inc.)/(Bank One, Wisconsin N.A. LOC)		965,000
	3,900,000		Mukwonago, WI, (Series 1999), Weekly VRDNs (Empire Level)/(Marshall & Ilsley Bank, Milwaukee LOC)		3,900,000
	615,000		Prentice Village, WI, Limited Obligation Revenue Refunding Bonds, (Series A), Weekly VRDNs (Biewer-Wisconsin Sawmill, Inc. Project)/(Standard Federal Bank, N.A. LOC)		615,000
	440,000		Waukesha, WI, IDRB, (Series 1995), Weekly VRDNs (Weldall Manufacturing Inc. Project)/(Bank One, Wisconsin N.A. LOC)		440,000
			TOTAL		9,935,000
			TOTAL INVESTMENTS--99.6% (AT AMORTIZED COST)3	$	424,778,554
			OTHER ASSETS AND LIABILITIES -- NET--0.4%		1,905,480
			TOTAL NET ASSETS--100%	$	426,684,034

Securities that are subject to the alternative minimum tax represent 71.1% of the portfolio as calculated based upon total portfolio market value (unaudited).

1 The fund may only invest in securities rated in one of the two highest short-term rating categories by nationally recognized statistical rating organizations ("NRSROs") or unrated securities of comparable quality. An NRSRO's two highest rating categories are determined without regard for sub-categories and gradations. For example, securities rated SP-1+, SP-1 or SP-2 by Standard & Poor's, MIG-1 or MIG-2 by Moody's Investors Service, or F-1+, F-1 or F-2 by Fitch Ratings, are all considered rated in one of the two highest short-term rating categories.

Securities rated in the highest short-term rating category (and unrated securities of comparable quality) are identified as First Tier securities. Securities rated in the second highest short-term rating category (and unrated securities of comparable quality) are identified as Second Tier securities. The fund follows applicable regulations in determining whether a security is rated and whether a security rated by multiple NRSROs in different rating categories should be identified as a First or Second Tier security.

At May 31, 2003, the portfolio securities were rated as follows:

Tier Rating Based on Total Market Value (unaudited)

First Tier	Second Tier
93.88%	6.12%

2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the Fund's Board of Directors. At May 31, 2003, these securities amounted to $29,114,716 which represents 6.8% of total net assets.

3 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at May 31, 2003.

The following acronyms are used throughout this portfolio:

AMBAC	- --American Municipal Bond Assurance Corporation
AMT	- --Alternative Minimum Tax
BANs	- --Bond Anticipation Notes
COL	- --Collateralized
CP	- --Commercial Paper
EDA	- --Economic Development Authority
EDRB	- --Economic Development Revenue Bonds
FGIC	- --Financial Guaranty Insurance Company
FSA	- --Financial Securities Assurance
GNMA	- --Government National Mortgage Association
GTD	- --Guaranteed
HFA	- --Housing Finance Authority
IDA	- --Industrial Development Authority
IDB	- --Industrial Development Bond
IDC	- --Industrial Development Corporation
IDR	- --Industrial Development Revenue
IDRB(s)	- --Industrial Development Revenue Bond(s)
IDFA	- --Industrial Development Finance Authority
INS	- --Insured
LIQ(s)	- --Liquidity Agreement(s)
LOC	- --Letter of Credit
MBIA	- --Municipal Bond Investors Assurance
MERLOTS	- --Municipal Exempt Receipts -- Liquidity Optional Tender Series
MMMs	- --Money Market Municipals
PCR	- --Pollution Control Revenue
RANs	- --Revenue Anticipation Notes
SWP	- --Swap Agreement
TANs	- --Tax Anticipation Notes
TOBs	- --Tender Option Bonds
TOPS	- --Trust Obligation Participating Securities
TRANs	- --Tax and Revenue Anticipation Notes
VRDNs	- --Variable Rate Demand Notes
VRNs	- --Variable Rate Notes

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

May 31, 2003

Assets:
Total investments in securities, at amortized cost and value			$	424,778,554
Cash				740,704
Income receivable				1,666,760
Receivable for shares sold				979,970
TOTAL ASSETS				428,165,988
Liabilities:
Payable for shares redeemed	$	1,134,122
Income distribution payable		60,217
Payable to transfer and dividend disbursing agent fees and expenses		137,647
Payable to portfolio accounting fees		8,394
Payable to distribution services fee		36,928
Payable to shareholder services fee		92,453
Payable for directors'/trustees' fee		692
Accrued expenses		11,501
TOTAL LIABILITIES				1,481,954
Net assets for 426,689,482 shares outstanding			$	426,684,034
Net Assets Consist of:
Paid in capital			$	426,687,186
Distributions in excess of net investment income				(46	)
Net realized loss on investments				(3,106	)
TOTAL NET ASSETS			$	426,684,034
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$426,684,034 ÷ 426,689,482 shares outstanding				$1.00

See Notes which are an integral part of the Financial Statements

Statement of Operations

Year Ended May 31, 2003

Investment Income:
Interest							$	7,816,877
Expenses:
Investment adviser fee				$	2,485,986
Administrative personnel and services fee					373,892
Custodian fees					24,407
Transfer and dividend disbursing agent fees and expenses					581,436
Directors'/Trustees' fees					7,128
Auditing fees					12,736
Legal fees					13,476
Portfolio accounting fees					90,569
Distribution services fee					497,197
Shareholder services fee					1,242,993
Share registration costs					175,748
Printing and postage					53,525
Insurance premiums					1,994
Taxes					20,751
Miscellaneous					1,456
TOTAL EXPENSES					5,583,294
Waivers:
Waiver of investment adviser fee	$	(312,181	)
Waiver of transfer and dividend disbursing agent fees and expenses		(26,180	)
TOTAL WAIVERS					(338,361	)
Net expenses								5,244,933
Net investment income								2,571,944
Net realized loss on investments								(3,106	)
Change in net assets resulting from operations							$	2,568,838

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Year Ended May 31		2003			2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	2,571,944		$	6,882,918
Net realized gain (loss) on investments		(3,106	)		--
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		2,568,838			6,882,918
Distributions to Shareholders:
Distributions from net investment income		(2,571,990	)		(6,882,918	)
Share Transactions:
Proceeds from sale of shares		1,422,435,594			1,597,091,828
Net asset value of shares issued to shareholders in payment of distributions declared		2,423,462			6,570,429
Cost of shares redeemed		(1,536,407,530	)		(1,573,950,050	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(111,548,474	)		29,712,207
Change in net assets		(111,551,626	)		29,712,207
Net Assets:
Beginning of period		538,235,660			508,523,453
End of period (including distributions in excess of net investment income of $(46) and $0, respectively)	$	426,684,034		$	538,235,660

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

May 31, 2003

ORGANIZATION

Cash Trust Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Corporation consists of four portfolios. The financial statements included herein are only those of Municipal Cash Series (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is to provide current income exempt from federal regular income tax consistent with stability of principal.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP").

Investment Valuation

The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date.

Premium and Discount Amortization

All premiums and discounts are amortized/accreted.

Federal Taxes

It is the Fund's policy to comply with the subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. Many restricted securities may be resold in the secondary market in transactions exempt from registration. In some cases, the restricted securities may be resold without registration upon exercise of a demand feature. Such restricted securities may be determined to be liquid under criteria established by the Board of Directors (the "Directors"). The Fund will not incur any registration costs upon such resales. Restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2003, there were 12,500,000,000 par value shares ($0.001 per share) authorized. Capital paid-in aggregated $426,687,186. Transactions in capital stock were as follows:

Year Ended May 31	2003				2002
	Shares		Amount		Shares		Amount
Shares sold	1,422,435,594		1,422,435,594		1,597,091,828		1,597,091,828
Shares issued to shareholders in payment of distributions declared	2,423,393		2,423,462		6,570,429		6,570,429
Shares redeemed	(1,536,405,165	)	(1,536,407,530	)	(1,573,950,050	)	(1,573,950,050	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(111,546,178	)	(111,548,474	)	29,712,207		29,712,207

FEDERAL TAX INFORMATION

Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to expired capital loss carryforwards.

For the year ended May 31, 2003, permanent items identified and reclassified among the components of net assets were as follows:

Paid-In Capital	Accumulated Net Realized Gains (Losses)
$(2,365)	$2,365

Net investment income, net realized gains (losses) and net assets were not affected by this reclassification.

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended May 31, 2003 and May 31, 2002, was as follows:

	2003	2002
Tax-exempt income	$2,571,990	$6,882,918

As of May 31, 2003, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	$60,172
Capital loss carryforward	$  3,106

At May 31, 2003, the Fund had a capital loss carryforward of $3,106, which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund or any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

Expiration Year	Expiration Amount
2011	$3,106

OTHER TAXES

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.50% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will reimburse Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's shares. The Plan provides that the Fund may incur distribution expenses up to 0.35% of the average daily net assets of the Fund, annually, to reimburse FSC.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

Interfund Transactions

During the year ended May 31, 2003, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees, and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $909,506,000 and $1,387,801,000, respectively.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

FEDERAL TAX INFORMATION (UNAUDITED)

At May 31, 2003, 100% of distributions from net investment income are exempt from federal income tax, other than AMT.

Independent Auditors' Report

TO THE BOARD OF DIRECTORS OF CASH TRUST SERIES, INC. AND SHAREHOLDERS OF MUNICIPAL CASH SERIES:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Municipal Cash Series (the "Fund") (a portfolio of the Cash Trust Series, Inc.) as of May 31, 2003, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to provide 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 the securities owned at May 31, 2003, 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 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 the Fund as of May 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts
July 11, 2003

Board of Directors and Corporation Officers

The following table gives information about each Board member and the senior officers of the Fund. The tables separately list Board members who are "interested persons" of the Fund (i.e., "Interested" Board members) and those who are not (i.e., "Independent" Board members). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA. The Federated Fund Complex consists of 138 investment company portfolios. Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Board member: oversees all portfolios in the Federated Fund Complex; serves for an indefinite term; and also serves as a Board member of the following investment company complexes: Banknorth Funds--four portfolios; Regions Morgan Keegan Select Funds--nine portfolios; Riggs Funds--eight portfolios; WesMark Funds--five portfolios; and Golden Oak® Family of Funds--seven portfolios. The Fund's Statement of Additional Information includes additional information about Corporation Directors and is available, without charge and upon request, by calling 1-800-341-7400.

INTERESTED DIRECTORS BACKGROUND

Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
John F. Donahue* Birth Date: July 28, 1924 CHAIRMAN AND DIRECTOR Began serving: May 1989	Principal Occupations: Chairman and Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.
J. Christopher Donahue* Birth Date: April 11, 1949 PRESIDENT AND DIRECTOR Began serving: May 1989	Principal Occupations: Principal Executive Officer and President of the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief Executive Officer and Director, Federated Investors, Inc.
Lawrence D. Ellis, M.D.* Birth Date: October 11, 1932 3471 Fifth Avenue Suite 1111 Pittsburgh, PA DIRECTOR Began serving: May 1989	Principal Occupations: Director or Trustee of the Federated Fund Complex; Professor of Medicine, University of Pittsburgh; Medical Director, University of Pittsburgh Medical Center Downtown; Hematologist, Oncologist and Internist, University of Pittsburgh Medical Center. Other Directorships Held: Member, National Board of Trustees, Leukemia Society of America. Previous Positions: Trustee, University of Pittsburgh; Director, University of Pittsburgh Medical Center.

* Family relationships and reasons for "interested" status: John F. Donahue is the father of J. Christopher Donahue; both are "interested" due to the positions they hold with Federated Investors, Inc. and its subsidiaries. Lawrence D. Ellis, M.D. is "interested" because his son-in-law is employed by the Fund's principal underwriter, Federated Securities Corp.

INDEPENDENT DIRECTORS BACKGROUND

Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
Thomas G. Bigley Birth Date: February 3, 1934 15 Old Timber Trail Pittsburgh, PA DIRECTOR Began serving: November 1994	Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director, Member of Executive Committee, Children's Hospital of Pittsburgh; Director, University of Pittsburgh. Previous Position: Senior Partner, Ernst & Young LLP.
John T. Conroy, Jr. Birth Date: June 23, 1937 Grubb & Ellis/Investment Properties Corporation 3838 North Tamiami Trail Suite 402 Naples, FL DIRECTOR Began serving: August 1991	Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman of the Board, Investment Properties Corporation; Partner or Trustee in private real estate ventures in Southwest Florida. Previous Positions: President, Investment Properties Corporation; Senior Vice President, John R. Wood and Associates, Inc., Realtors; President, Naples Property Management, Inc. and Northgate Village Development Corporation.
Nicholas P. Constantakis Birth Date: September 3, 1939 175 Woodshire Drive Pittsburgh, PA DIRECTOR Began serving: February 1998	Principal Occupations: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director and Member of the Audit Committee, Michael Baker Corporation (engineering and energy services worldwide). Previous Position: Partner, Andersen Worldwide SC.
John F. Cunningham Birth Date: March 5, 1943 353 El Brillo Way Palm Beach, FL DIRECTOR Began serving: January 1999	Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc.
Peter E. Madden Birth Date: March 16, 1942 One Royal Palm Way 100 Royal Palm Way Palm Beach, FL DIRECTOR Began serving: August 1991	Principal Occupation: Director or Trustee of the Federated Fund Complex; Management Consultant. Other Directorships Held: Board of Overseers, Babson College. Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange.
Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 80 South Road Westhampton Beach, NY DIRECTOR Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant; Executive Vice President, DVC Group, Inc. (marketing communications and technology) (prior to 9/1/00). Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University.
John E. Murray, Jr., J.D., S.J.D. Birth Date: December 20, 1932 Chancellor, Duquesne University Pittsburgh, PA DIRECTOR Began serving: February 1995	Principal Occupations: Director or Trustee of the Federated Fund Complex; Chancellor and Law Professor, Duquesne University; Consulting Partner, Mollica & Murray. Other Directorships Held: Director, Michael Baker Corp. (engineering, construction, operations and technical services). Previous Positions: President, Duquesne University; Dean and Professor of Law, University of Pittsburgh School of Law; Dean and Professor of Law, Villanova University School of Law.
Marjorie P. Smuts Birth Date: June 21, 1935 4905 Bayard Street Pittsburgh, PA DIRECTOR Began serving: May 1989	Principal Occupations: Director or Trustee of the Federated Fund Complex; Public Relations/Marketing Consultant/Conference Coordinator. Previous Positions: National Spokesperson, Aluminum Company of America; television producer; President, Marj Palmer Assoc.; Owner, Scandia Bord.
John S. Walsh Birth Date: November 28, 1957 2604 William Drive Valparaiso, IN DIRECTOR Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Previous Position: Vice President, Walsh & Kelly, Inc.

OFFICERS

Name Birth Date Address Positions Held with Corporation	Principal Occupation(s) and Previous Position(s)
Edward C. Gonzales Birth Date: October 22, 1930 EXECUTIVE VICE PRESIDENT Began serving: June 1995	Principal Occupations: Executive Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Trustee, Federated Administrative Services. Previous Positions: President and Trustee or Director of some of the Funds in the Federated Fund Complex; CEO and Chairman, Federated Administrative Services.
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Began serving: May 1989	Principal Occupations: Executive Vice President and Secretary of the Federated Fund Complex; Executive Vice President, Secretary and Director, Federated Investors, Inc.
Richard J. Thomas Birth Date: June 17, 1954 TREASURER Began serving: November 1998	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services.
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Began serving: August 2002	Principal Occupations: Vice Chairman or President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc. and Director and Chief Executive Officer, Federated Securities Corp.
William D. Dawson III Birth Date: March 3, 1949 CHIEF INVESTMENT OFFICER Began serving: November 1998	Principal Occupations: Chief Investment Officer of this Fund and various other Funds in the Federated Fund Complex; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp., Federated Investment Management Company and Passport Research, Ltd. Previous Positions: Executive Vice President and Senior Vice President, Federated Investment Counseling Institutional Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.
Name Birth Date Address Positions Held with Corporation	Principal Occupation(s) and Previous Position(s)
Deborah A. Cunningham Birth Date: September 15, 1959 VICE PRESIDENT Began serving: November 1998	Deborah A. Cunningham has been the Fund's Portfolio Manager since August 1989. She is Vice President of the Corporation. Ms. Cunningham joined Federated in 1981 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1997. Ms. Cunningham served as a Portfolio Manager and a Vice President of the Adviser from 1993 through 1996. Ms. Cunningham is a Chartered Financial Analyst and received her M.S.B.A. in Finance from Robert Morris College.
Mary Jo Ochson Birth Date: September 12, 1953 VICE PRESIDENT Began serving: November 1998	Mary Jo Ochson is Vice President of the Corporation. Ms. Ochson joined Federated in 1982 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1996. From 1988 through 1995, Ms. Ochson served as a Portfolio Manager and a Vice President of the Fund's Adviser. Ms. Ochson is a Chartered Financial Analyst and received her M.B.A. in Finance from the University of Pittsburgh.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.

Federated Investors
World-Class Investment Manager

Municipal Cash Series
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 147551303

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

28565 (7/03)

Federated Investors
World-Class Investment Manager

Prime Cash Series

A Portfolio of Cash Trust Series, Inc.

ANNUAL SHAREHOLDER REPORT

May 31, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

INDEPENDENT AUDITORS' REPORT

BOARD OF DIRECTORS AND CORPORATION OFFICERS

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Financial Highlights

(For a Share Outstanding Throughout Each Period)

Year Ended May 31	2003			2002			2001			2000			1999
Net Asset Value, Beginning of Period	$1.00			$1.00			$1.00			$1.00			$1.00
Income From Investment Operations:
Net investment income	0.01			0.02			0.05			0.05			0.04
Less Distributions:
Distributions from net investment income	(0.01	)		(0.02	)		(0.05	)		(0.05	)		(0.04	)
Net Asset Value, End of Period	$1.00			$1.00			$1.00			$1.00			$1.00
Total Return1	0.69	%		1.95	%		5.34	%		4.81	%		4.46	%
Ratios to Average Net Assets:
Expenses	1.05	%		1.05	%		1.04	%		1.01	%		1.00	%
Net investment income	0.70	%		1.94	%		5.18	%		4.73	%		4.36	%
Expense waiver/reimbursement2	0.03	%		0.02	%		0.06	%		0.14	%		0.16	%
Supplemental Data:
Net assets, end of period (000 omitted)	$5,008,970		$5,621,516			$6,151,845			$5,061,010			$4,728,448

1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

2 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

May 31, 2003

Principal Amount				Value
			ASSET-BACKED SECURITIES--1.4%
			Finance - Automotive--1.0%
$	1,500,366		Americredit Automobile Receivables Trust 2002-E-M, Class A1, 1.818%, 11/6/2003	$	1,500,366
	1,198,499		CarMax Auto Owner Trust 2002-2, Class A1, 1.425%, 12/15/2003		1,198,499
	3,026,582		MMCA Auto Owner Trust 2002-5, Class A1, 1.410%, 12/15/2003		3,026,582
	29,016,268		Regions Auto Receivables Trust 2003-1, Class A1, 1.191%, 3/15/2004		29,016,268
	9,810,131		TF Automobile Receivables Owner Trust 2002-1, Class A1, 1.468%, 12/12/2003		9,810,131
	2,641,793		Volkswagen Auto Lease Trust 2002-A, Class A1, 1.385%, 11/20/2003		2,641,793
	3,370,413		WFS Financial Owner Trust 2002-4, Class A1, 1.676%, 11/20/2003		3,370,413
			TOTAL		50,564,052
			Insurance--0.4%
	6,000,000		Household Automotive Trust 2003-1, Class A1, (AMBAC LOC), 1.240%, 5/17/2004		6,000,000
	15,066,302		Onyx Acceptance Auto Owner Trust 2003-A, Class A1, (Insured by XL Capital Assurance Inc.), 1.360%, 2/15/2004		15,066,302
			TOTAL		21,066,302
			TOTAL ASSET-BACKED SECURITIES		71,630,354
			CERTIFICATES OF DEPOSIT--9.2%
			Banking--9.2%
	52,000,000		Abbey National Treasury Services, PLC, 1.350% - 1.845%, 10/17/2003 - 4/19/2004		52,000,519
	26,500,000		BNP Paribas SA, 1.296%, 3/3/2004		26,498,997
	46,000,000		Bank of New York, 2.065%, 7/1/2003		45,998,686
	100,000,000		Bayerische Hypotheken-und Vereinsbank AG, 1.260% - 1.300%, 7/17/2003 - 8/25/2003		100,000,000
	25,000,000		Canadian Imperial Bank of Commerce, 1.295%, 8/11/2003		25,000,000
	60,000,000		Comerica Bank, 2.275%, 6/23/2003		59,999,104
	15,000,000		Credit Agricole Indosuez, 1.330%, 4/26/2004		14,998,643
	35,000,000		Danske Bank A/S, 2.100%, 6/30/2003		34,997,793
	25,000,000		HBOS Treasury Services PLC, 1.280%, 6/18/2004		25,000,000
	10,000,000		National Australia Bank Ltd., Melbourne, 1.520%, 5/14/2004		10,000,000
	65,000,000		Svenska Handelsbanken, Stockholm, 1.250% - 2.280%, 6/30/2003 - 4/13/2004		65,002,815
			TOTAL CERTIFICATES OF DEPOSIT		459,496,557
Principal Amount				Value
			COLLATERALIZED LOAN AGREEMENTS--14.7%
			Banking--11.5%
$	50,000,000		CDC Financial Products, Inc., 1.475%, 6/2/2003	$	50,000,000
	100,000,000		Deutsche Bank Securities, Inc., 1.505%, 6/2/2003		100,000,000
	200,000,000		HSBC Securities, Inc., 1.475% - 1.525%, 6/2/2003		200,000,000
	225,000,000		J.P. Morgan Securities, Inc., 1.475%, 6/2/2003		225,000,000
			TOTAL		575,000,000
			Brokerage--3.2%
	110,000,000		Merrill Lynch, Pierce, Fenner & Smith, 1.415% - 1.455%, 6/2/2003		110,000,000
	50,000,000		Morgan Stanley & Co., Inc., 1.455%, 6/2/2003		50,000,000
			TOTAL		160,000,000
			TOTAL COLLATERALIZED LOAN AGREEMENTS		735,000,000
			COMMERCIAL PAPER--22.4%1
			Banking--6.6%
	93,000,000		Bavaria TRR, (Bayerische Hypotheken-und Vereinsbank AG Swap Agreement), 1.290% - 1.300%, 6/15/2003 - 6/24/2003		92,885,715
	18,295,000		Benedictine Health System, (Harris Trust & Savings Bank, Chicago LOC), 1.310%, 6/3/2003		18,293,668
	50,000,000		Blue Spice LLC, (Deutsche Bank AG Swap Agreement), 1.270%, 6/17/2003		49,971,778
	27,450,000		Ivory Funding Corp., 1.270%, 6/12/2003		27,439,348
	100,000,000		Kitty Hawk Funding Corp., 1.270%, 6/23/2003		99,922,389
	42,800,000		Long Lane Master Trust IV, (Fleet National Bank Swap Agreement), 1.240%, 8/20/2003		42,682,062
			TOTAL		331,194,960
			Brokerage--1.0%
	50,000,000		Citigroup Global Markets Holdings, Inc., 1.270%, 7/1/2003		49,978,833
			Consumer Products--0.9%
	47,000,000		Diageo Capital PLC, (Guaranteed by Diageo PLC), 1.270% - 1.310%, 8/18/2003 - 2/17/2004		46,735,755
			Finance - Automotive--3.0%
	49,000,000		FCAR Auto Loan Trust, (Series A1+/P1), 1.300%, 7/11/2003		48,929,222
	46,400,000		Ford Motor Credit Co., 1.540% - 1.560%, 6/12/2003 - 7/21/2003		46,363,960
	52,000,000		New Center Asset Trust, (Series A1/P1), 1.230% - 1.270%, 8/7/2003 - 8/28/2003		51,860,550
			TOTAL		147,153,732
Principal Amount				Value
			COMMERCIAL PAPER--continued1
			Finance - Commercial--5.6%
$	99,500,000		CIT Group, Inc., 1.250% - 1.300%, 7/3/2003 - 7/30/2003	$	99,330,370
	97,115,000		Compass Securitization LLC, 1.270%, 6/23/2003 - 6/24/2003		97,038,217
	72,000,000		General Electric Capital Services, 1.270%, 7/21/2003		71,873,000
	13,000,000		Paradigm Funding LLC, 1.270%, 6/13/2003		12,994,497
			TOTAL		281,236,084
			Finance - Equipment--0.5%
	4,000,000		John Deere Bank S.A., (Guaranteed by John Deere Capital Corp.), 1.470%, 7/25/2003		3,991,180
	22,700,000		John Deere Credit Ltd., (Guaranteed by John Deere Capital Corp.), 1.470% - 1.480%, 6/6/2003 - 7/25/2003		22,678,056
			TOTAL		26,669,236
			Finance - Retail--1.2%
	4,300,000		Household Finance Corp., 1.340%, 6/3/2003		4,299,680
	30,000,000		Jupiter Securitization Corp., 1.270%, 6/20/2003		29,979,892
	25,000,000		Sheffield Receivables Corp., 1.278%, 1/20/2004		25,000,000
			TOTAL		59,279,572
			Food & Beverage--1.6%
	50,500,000		General Mills, Inc., 1.320% - 1.380%, 6/4/2003 - 6/24/2003		50,488,330
	27,820,000		Sara Lee Corp., 1.300%, 6/19/2003		27,801,917
			TOTAL		78,290,247
			Insurance--0.5%
	25,000,000		AEGON Funding Corp., 1.240%, 8/15/2003		24,935,416
			Machinery, Equipment, Auto--0.3%
	17,000,000		John Deere Capital Corp., (Deere & Co. Support Agreement), 1.450% - 1.480%, 6/6/2003 - 6/13/2003		16,995,256
			Oil & Oil Finance--0.2%
	10,000,000		Shell Finance (UK) PLC, 1.840%, 9/9/2003		9,948,889
			Retail--1.0%
	49,600,000		Safeway, Inc., 1.325% - 1.340%, 6/9/2003 - 7/7/2003		49,568,528
			TOTAL COMMERCIAL PAPER		1,121,986,508
			CORPORATE NOTES--10.2%
			Banking--1.9%
	50,000,000		Deutsche Bank AG, 1.405%, 6/2/2003		50,000,000
	45,000,000		State Street Bank and Trust Co., 1.420%, 4/2/2004		45,000,000
			TOTAL		95,000,000
Principal Amount				Value
			CORPORATE NOTES--continued
			Brokerage--3.5%
$	145,000,000		Bear Stearns Cos., Inc., 1.525%, 6/2/2003	$	145,000,000
	30,000,000		Goldman Sachs Group, Inc., 1.260% - 1.360%, 8/8/2003 - 9/12/2003		30,000,000
			TOTAL		175,000,000
			Finance - Securities--4.3%
	169,500,000		Beta Finance, Inc., (Guaranteed by Beta Finance Corp.), 1.300% - 1.840%, 10/24/2003 - 4/7/2004		169,498,821
	25,000,000		K2 (USA) LLC, (Guaranteed by K2 Corp.), 2.320%, 7/7/2003		25,002,428
	20,000,000		Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 2.265%, 7/15/2003		20,000,000
			TOTAL		214,501,249
			Telecommunications--0.5%
	28,000,000		SBC Communications, Inc., 4.295%, 6/5/2003		28,004,646
			TOTAL CORPORATE NOTES		512,505,895
			GOVERNMENT AGENCIES--2.0%
	42,000,000		Federal Home Loan Bank System, 1.400%, 3/8/2004		42,000,000
	38,000,000		Federal Home Loan Mortgage Corp., 5.250%, 2/15/2004		39,044,257
	20,000,000		Federal National Mortgage Association, 1.380%, 5/7/2004		20,000,000
			TOTAL GOVERNMENT AGENCIES		101,044,257
			LOAN PARTICIPATIONS--1.6%
			Chemicals--0.2%
	10,000,000		DuPont Teijin Films U.K. Ltd., (Guaranteed by Du Pont (E.I.) de Nemours & Co.), 1.320%, 6/6/2003		10,000,000
			Finance - Automotive--0.4%
	20,000,000		General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 1.850%, 6/2/2003		19,998,972
			Finance - Commercial--0.5%
	25,700,000		Mt. Vernon Phenol Plant Partnership, (General Electric Capital Corp. LOC), 1.338%, 5/19/2004		25,700,000
			Finance - Retail--0.5%
	25,000,000		Countrywide Home Loans, Inc., 1.320%, 6/30/2003		25,000,000
			TOTAL LOAN PARTICIPATIONS		80,698,972
Principal Amount				Value
			NOTES - VARIABLE--31.2%2
			Banking--16.6%
$	2,660,000		6380 Brackbill Associates, LP, (Series 2000), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003	$	2,660,000
	3,175,000		Adena Health System, Adena Health System Project (Series 1998), (Huntington National Bank, Columbus, OH LOC), 1.400%, 6/5/2003		3,175,000
	14,680,000		Alabama Incentives Financing Authority, (Series 1999-C), (SouthTrust Bank of Alabama, Birmingham LOC), 1.350%, 6/5/2003		14,680,000
	4,549,000		American Health Care Centers, Inc., (Series 1998), (FirstMerit Bank, N.A. LOC), 1.370%, 6/5/2003		4,549,000
	6,600,000		American Manufacturing Co., Inc., (Wachovia Bank N.A. LOC), 1.470%, 6/5/2003		6,600,000
	3,625,000		Aurora City, IL, (Series 1995), (National City Bank, Michigan/Illinois LOC), 1.500%, 6/5/2003		3,625,000
	4,135,000		BW Capps & Son, Inc., (Columbus Bank and Trust Co., GA LOC), 1.450%, 6/5/2003		4,135,000
	3,745,000		Balboa Investment Group V, (First Commercial Bank, Birmingham, AL LOC), 1.400%, 6/5/2003		3,745,000
	1,130,000		BeMacs Service, Inc., (SouthTrust Bank of Alabama, Birmingham LOC), 1.370%, 6/6/2003		1,130,000
	1,675,000		Blackwell Investments, Inc., (Bank One N.A. (Chicago) LOC), 1.370%, 6/5/2003		1,675,000
	75,000,000		Blue Heron Funding III, Inc, (Series 3A), (Guaranteed by WestLB AG), 1.330%, 6/30/2003		75,000,000
	20,000,000		Blue Heron Funding V-A Ltd., (Guaranteed by WestLB AG), 1.330%, 6/26/2003		20,000,000
	6,585,000		Bond Holdings LP, (SouthTrust Bank of Alabama, Birmingham LOC), 1.420%, 6/6/2003		6,585,000
	1,200,000		Boozer Lumber Co., (SouthTrust Bank of Alabama, Birmingham LOC), 1.370%, 6/6/2003		1,200,000
	8,000,000		Callaway Gardens Resort, Inc., (Columbus Bank and Trust Co., GA LOC), 1.470%, 6/15/2003		8,000,000
	8,093,000		Capital One Funding Corp., (Bank One N.A. (Ohio) LOC), 1.350%, 6/5/2003		8,093,000
	8,000,000		Central Penn, Inc., (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		8,000,000
	1,310,000		Children's Defense Fund, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/3/2003		1,310,000
	4,905,000		Columbus, GA Development Authority, Woodmont Properties, LLC, (Series 2000), (Columbus Bank and Trust Co., GA LOC), 1.360%, 6/5/2003		4,905,000
	3,865,000		Crane Plastics Siding LLC, (Series 2000), (Bank One N.A. (Chicago) LOC), 1.370%, 6/5/2003		3,865,000
Principal Amount				Value
			NOTES - VARIABLE--continued2
			Banking--continued
$	3,850,000		Dewberry III LP, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/4/2003	$	3,850,000
	1,045,000		Edgefield County, SC, (Series 1997), (Bondex Inc Project), (HSBC Bank USA LOC), 1.700%, 6/5/2003		1,045,000
	3,680,000		Engle Printing & Publishing, (Series 2001), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		3,680,000
	6,909,000		Frank Parsons Paper Co., Inc., (Series 1999), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		6,909,000
	7,370,000		Gannett Fleming, Inc., (Series 2001), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		7,370,000
	6,800,000		Gervais Street Associates, (Series 1998), (Wachovia Bank N.A. LOC), 1.420%, 6/4/2003		6,800,000
	1,075,000		Gettysburg Area IDA, Hanover Lantern, Inc. Project (Series 1998-B), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/4/2003		1,075,000
	2,050,000		Graywood Farms LLC, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		2,050,000
	3,105,000		Great Southern Wood Preserving Inc., (SouthTrust Bank of Alabama, Birmingham LOC), 1.370%, 6/6/2003		3,105,000
	8,695,000		Grob Systems, Inc., (Series 1998 & 1999), (Fifth Third Bank, Cincinnati LOC), 1.320%, 6/5/2003		8,695,000
	44,000,000		HBOS Treasury Services PLC, 1.280%, 8/20/2003		44,000,000
	8,485,000		HJH Associates of Alabama, Hilton Hotel, Huntsville, (SouthTrust Bank of Alabama, Birmingham LOC), 1.370%, 6/6/2003		8,485,000
	1,000,000		Hanna Steel Corp., (SouthTrust Bank of Alabama, Birmingham LOC), 1.420%, 6/6/2003		1,000,000
	4,880,000		Hodges Bonded Warehouse, Inc., Teague Warehouse Project, (Columbus Bank and Trust Co., GA LOC), 1.420%, 6/5/2003		4,880,000
	5,893,000		Houlihan Brothers Finance Corp., (Series A), (National City Bank, Michigan/Illinois LOC), 1.340%, 6/5/2003		5,893,000
	49,320,000		Inland Empire Solid Waste Financing Authority, CA, (Bayerische Hypotheken-und Vereinsbank AG LOC), 1.830%, 6/4/2003		49,320,000
	4,430,000		Iowa 80 Group, Inc., (Series 2001), (Wells Fargo Bank, N.A. LOC), 1.440%, 6/2/2003		4,430,000
	8,100,000		Jackson-Rime Development Co. I, (Series 2002), (First Commercial Bank, Birmingham, AL LOC), 1.350%, 6/5/2003		8,100,000
	2,290,000		Lake Sherwood Senior Living Center LLC, (Union Planters Bank, N.A., Memphis, TN LOC), 1.650%, 6/5/2003		2,290,000
Principal Amount				Value
			NOTES - VARIABLE--continued2
			Banking--continued
$	46,750,000		Liquid Asset Backed Securities Trust, (Series 1996-3), (WestLB AG Swap Agreement), 1.330%, 6/15/2003	$	46,750,000
	10,704,000		MMR Funding I, (Series A), (Bayerische Hypotheken-und Vereinsbank AG LOC), 1.350%, 6/5/2003		10,704,000
	50,000,000	3	MONET Trust, (Series 2000-1), (Dresdner Bank AG, Frankfurt Swap Agreement), 1.360%, 6/30/2003		50,000,000
	3,500,000		Maryland Economic Development Corp., CWI Limited Partnership, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		3,500,000
	4,250,000		Maryland Economic Development Corp., Human Genome Sciences (Series 1999A), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/3/2003		4,250,000
	50,000,000		Maryland Economic Development Corp., Human Genome Sciences, (Series 2001A), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/3/2003		50,000,000
	4,200,000		Maryland State IDFA, (Kelly Springfield Tire), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.290%, 6/2/2003		4,200,000
	334,000		Maryland State IDFA, Human Genome, (Series1994), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.240%, 6/2/2003		334,000
	4,065,000		Memphis, TN Center City Revenue Finance Corp., South Bluffs Project (Series1998-B), (National Bank of Commerce, Memphis, TN LOC), 1.490%, 6/5/2003		4,065,000
	355,000		New Jersey EDA, (Series 1992 K-3), (BNP Paribas SA LOC), 1.520%, 6/2/2003		355,000
	9,000,000		Newton Racquetball Associates, (Commerce Bank NA, Cherry Hill, NJ LOC), 1.470%, 6/4/2003		9,000,000
	4,575,000		Northwood Crossing LLC, (First Commercial Bank, Birmingham, AL LOC), 1.370%, 6/5/2003		4,575,000
	5,705,000		O'Dovero Consolidated LLC, (Series 1998-A), (National City Bank, Michigan/Illinois LOC), 1.340%, 6/5/2003		5,705,000
	7,700,000		Oxmoor Partners LLC, (First Commercial Bank, Birmingham, AL LOC), 1.370%, 6/5/2003		7,700,000
	10,095,000		PVF Finance LLC, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		10,095,000
	8,655,000		Remington Leasing LLC, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		8,655,000
	7,500,000		Rt. 206, Inc., (Series 2000), (Commerce Bank NA, Cherry Hill, NJ LOC), 1.580%, 6/5/2003		7,500,000
	750,000		Sandridge Food Corp., (National City Bank, Ohio LOC), 1.370%, 6/5/2003		750,000
	25,000,000		Sea Island Co., (Columbus Bank and Trust Co., GA LOC), 1.420%, 6/5/2003		25,000,000
Principal Amount				Value
			NOTES - VARIABLE--continued2
			Banking--continued
$	3,745,000		Sojourn Project, (Series 1997), (FirstMerit Bank, N.A. LOC), 1.370%, 6/5/2003	$	3,745,000
	9,630,000		Standing Boy Properties LLC, (Columbus Bank and Trust Co., GA LOC), 1.420%, 6/5/2003		9,630,000
	1,800,000		Stone Creek LLC, (Columbus Bank and Trust Co., GA LOC), 1.350%, 6/5/2003		1,800,000
	4,785,000		Sun Valley, Inc., (SouthTrust Bank of Alabama, Birmingham LOC), 1.370%, 6/6/2003		4,785,000
	2,735,000		Sussex County, DE, Rehoboth Mall Project, (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		2,735,000
	46,200,000		Taxable Floating Rate Notes, (Series 2002-H2), Becker, MN PCR, (Bank of New York Swap Agreement), 1.450%, 6/4/2003		46,200,000
	3,100,000		Thetford Threesome LLC, (Columbus Bank and Trust Co., GA LOC), 1.420%, 6/5/2003		3,100,000
	15,000,000	3	URI Trust, (Series 2000-1), (UBS AG Swap Agreement), 1.330%, 6/18/2003		15,000,000
	17,475,000		Union Development Co., (Bank of America N.A. LOC), 1.291%, 6/5/2003		17,475,000
	4,410,000		Visalia, CA Community Redevelopment Agency, East Visalia Redevelopment Project (Series 1990), (Union Bank of California LOC), 2.250%, 6/5/2003		4,410,000
	9,527,500		WCN Properties, Inc., (Series 2000), (Manufacturers & Traders Trust Co., Buffalo, NY LOC), 1.470%, 6/6/2003		9,527,500
	73,000,000		Wells Fargo & Co., 1.310% - 1.350%, 6/2/2003 - 6/16/2003		73,000,000
	29,000,000		Wells Fargo Bank, N.A., 1.290%, 2/3/2004		29,000,000
	3,930,000		Woodbury Business Forms, Inc./Carribean Business Forms, (Series 1996), Taxable Revenue Bonds, (Columbus Bank and Trust Co., GA LOC), 1.650%, 6/5/2003		3,930,000
			TOTAL		833,384,500
			Brokerage--1.3%
	25,000,000		Goldman Sachs Group, Inc., Promissory Notes, 1.470%, 6/2/2003		25,000,000
	40,000,000		Merrill Lynch & Co., Inc., 1.360%, 6/11/2003		40,000,000
			TOTAL		65,000,000
			Finance - Automotive--0.6%
	30,000,000		GMAC Residential Holding Corp., (Guaranteed by General Motors Acceptance Corp.), 1.803%, 7/1/2003		29,955,452
			Finance - Commercial--1.9%
	90,500,000		General Electric Capital Corp., 1.340% - 1.348%, 6/9/2003 - 6/17/2003		90,500,000
	3,000,000		South Carolina Jobs-EDA, Roller Bearing Co., (Series 1994 B), (Heller Financial, Inc. LOC), 1.440%, 6/5/2003		3,000,000
			TOTAL		93,500,000
Principal Amount or Shares				Value
			NOTES - VARIABLE--continued2
			Finance - Retail--0.7%
$	31,000,000		AFS Insurance Premium Receivables Trust, (Series 1994-A), 1.866%, 6/16/2003	$	31,000,000
	3,500,000		Holmes Financing (No. 7) PLC, 1.26% 4/15/04, A1, 1.270%, 6/16/2003		3,500,000
			TOTAL		34,500,000
			Finance - Securities--4.4%
	15,000,000		Beta Finance, Inc., (Guaranteed by Beta Finance Corp.), 1.305%, 6/2/2003		15,000,000
	55,000,000		K2 (USA) LLC, (Guaranteed by K2 Corp.), 1.290% - 1.315%, 6/2/2003 - 6/16/2003		54,999,479
	152,000,000		Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 1.278% - 1.355%, 6/2/2003 - 9/15/2003		151,991,318
			TOTAL		221,990,797
			Government Agency--0.0%
	810,000		Clayton County, GA Housing Authority, Summerwinds Project, (Series 2000 B), (Federal National Mortgage Association LOC), 1.320%, 6/5/2003		810,000
			Insurance--4.9%
	20,000,000		Allstate Life Insurance Co., 1.540%, 8/1/2003		20,000,000
	40,000,000		Compass Securitization LLC, 1.260%- 1.265%, 7/9/2003 - 9/15/2003		39,998,885
	30,000,000		GE Capital Assurance Co., 1.400%, 8/11/2003		30,000,000
	10,000,000		GE Life and Annuity Assurance Co., 1.439%, 9/2/2003		10,000,000
	33,000,000		Jackson National Life Insurance Co., 1.408%, 6/23/2003		33,000,000
	35,000,000		Monumental Life Insurance Co., 1.420%, 8/29/2003		35,000,000
	40,000,000		Principal Life Insurance Co., 1.489%, 8/1/2003		40,000,000
	23,000,000		Protective Life Insurance Co., 1.460%, 8/1/2003		23,000,000
	15,000,000		Security Life of Denver Insurance Co., 1.420%, 7/25/2003		15,000,000
			TOTAL		245,998,885
			Telecommunications--0.8%
	40,000,000		BellSouth Telecommunications, Inc., 1.350%, 6/5/2003		40,000,000
			TOTAL NOTES - VARIABLE		1,565,139,634
			MUTUAL FUNDS--4.0%
			Asset Management--4.0%
	150,000,000		Nations Cash Reserves		150,000,000
	50,000,000		Scudder Money Market		50,000,000
			TOTAL MUTUAL FUNDS		200,000,000
Principal Amount				Value
			REPURCHASE AGREEMENTS--3.1%
$	50,000,000		Interest in $225,000,000 joint agreement with Dresdner Kleinwort Wassertstein, 1.350%, dated 5/30/2003, to be repurchased at $50,005,625 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 8/8/2017	$	50,000,000
	102,653,000		Interest in $2,500,000,000 joint agreement with UBS Warburg LLC, 1.370%, dated 5/30/2003, to be repurchased at $102,664,720 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 6/25/2033		102,653,000
			TOTAL REPURCHASE AGREEMENTS		152,653,000
			TOTAL INVESTMENTS--99.8% (AT AMORTIZED COST)4		5,000,155,177
			OTHER ASSETS AND LIABILITIES -- NET--0.2%		8,815,203
			TOTAL NET ASSETS--100%	$	5,008,970,380

1 Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues.

2 Current rate and next reset date shown.

3 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At May 31, 2003, these securities amounted to $65,000,000 which represents 1.3% of total net assets.

4 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at May 31, 2003.

The following acronyms are used throughout this portfolio:

AMBAC	- --American Municipal Bond Assurance Corporation
EDA	- --Economic Development Authority
IDA	- --Industrial Development Authority
IDFA	- --Industrial Development Finance Authority
LOC	- --Letter of Credit
PCR	- --Pollution Control Revenue

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

May 31, 2003

Assets:
Total investments in securities, at amortized cost and value			$	5,000,155,177
Cash				1,384,075
Income receivable				11,278,501
Receivable for shares sold				9,669,705
TOTAL ASSETS				5,022,487,458
Liabilities:
Payable for shares redeemed	$	10,727,632
Payable for transfer and dividend disbursing agent fees and expenses		111,464
Payable to directors'/trustees' fees		5,359
Payable for portfolio accounting fees		14,511
Payable for distribution services fee		428,700
Payable for shareholder services fee		1,071,770
Income distribution payable		616,343
Accrued expenses		541,299
TOTAL LIABILITIES				13,517,078
Net assets for 5,008,997,462 shares outstanding			$	5,008,970,380
Net Assets Consist of:
Paid in capital			$	5,008,997,462
Distributions in excess of net investment income				(27,082	)
TOTAL NET ASSETS			$	5,008,970,380
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$5,008,970,380 ÷ 5,008,997,462 shares outstanding				$1.00

Notes which are an integral part of the Financial Statements

Statement of Operations

Year Ended May 31, 2003

Investment Income:
Interest							$	93,888,362
Expenses:
Investment adviser fee				$	26,784,579
Administrative personnel and services fee					4,028,401
Custodian fees					268,697
Transfer and dividend disbursing agent fees and expenses					6,679,518
Directors'/Trustees' fees					45,106
Auditing fees					10,984
Legal fees					9,784
Portfolio accounting fees					172,678
Distribution services fee					5,356,916
Shareholder services fee					13,392,290
Share registration costs					213,655
Printing and postage					394,710
Insurance premiums					7,510
Taxes					494,300
Miscellaneous					21,968
TOTAL EXPENSES					57,881,096
Waivers:
Waiver of investment adviser fee	$	(1,095,624	)
Waiver of transfer and dividend disbursing agent fees and expenses		(275,367	)
TOTAL WAIVERS					(1,370,991	)
Net expenses								56,510,105
Net investment income							$	37,378,257

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Year Ended May 31		2003			2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	37,378,257		$	119,036,412
Distributions to Shareholders:
Distributions from net investment income		(37,405,339	)		(119,036,412	)
Share Transactions:
Proceeds from sale of shares		14,251,305,521			15,523,662,338
Net asset value of shares issued to shareholders in payment of distributions declared		37,406,696			119,816,138
Cost of shares redeemed		(14,901,231,186	)		(16,173,806,982	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(612,518,969	)		(530,328,506	)
Change in net assets		(612,546,051	)		(530,328,506	)
Net Assets:
Beginning of period		5,621,516,431			6,151,844,937
End of period (including distributions in excess of net investment income of $(27,082) and $0, respectively)	$	5,008,970,380		$	5,621,516,431

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

May 31, 2003

ORGANIZATION

Cash Trust Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Corporation consists of four portfolios. The financial statements included herein are only those of Prime Cash Series (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is to provide current income consistent with stability of principal and liquidity.

SIGNIFICANT ACCOUNTING POLICES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP").

Investment Valuation

The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Directors (the "Directors"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distribution

Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date.

Premium and Discount Amortization

All premiums and discounts are amortized/accreted.

Federal Taxes

It is the Fund's policy to comply with the subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. Many restricted securities may be resold in the secondary market in transactions exempt from registration. In some cases, the restricted securities may be resold without registration upon exercise of a demand feature. Such restricted securities may be determined to be liquid under criteria established by the Board of Directors. The Fund will not incur any registration costs upon such resales. Restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.

Additional information on each restricted illiquid security held at May 31, 2003 is as follows:

Security	Acquisition Date	Acquisition Cost
MONET Trust, Series 2000-1	9/27/2000	$50,000,000
URI Trust, Series 2000-1	12/18/2000	$15,000,000

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2003, there were $12,500,000,000 par value shares ($0.001 share) authorized. Capital paid-in aggregated $5,008,997,462. Transactions in capital stock were as follows:

Year Ended May 31	2003		2002
Shares sold	14,251,305,521		15,523,662,338
Shares issued to shareholders in payment of distributions declared	37,406,696		119,816,138
Shares redeemed	(14,901,231,186	)	(16,173,806,982	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(612,518,969	)	(530,328,506	)

FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended May 31, 2003 and 2002, was as follows:

	2003	2002
Ordinary income	$37,405,339	$119,036,412

As of May 31, 2003, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income $589,261

OTHER TAXES

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment Adviser fee equal to 0.50% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will reimburse Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's shares. The Plan provides that the Fund may incur distribution expenses up to 0.35% of the average daily net assets of the Fund, annually, to reimburse FSC.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

CONCENTRATION OF CREDIT RISK

A substantial part of the Fund's portfolio may be comprised of obligations of banks. As a result, the Fund may be more susceptible to any economic, business, political or other developments which generally affect these entities.

Independent Auditors' Report

TO THE BOARD OF DIRECTORS OF CASH TRUST SERIES, INC. AND SHAREHOLDERS OF PRIME CASH SERIES:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Prime Cash Series (the "Fund") (a portfolio of the Cash Trust Series, Inc.) as of May 31, 2003, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to provide 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 the securities owned at May 31, 2003, 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 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 the Fund as of May 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts
July 11, 2003

Board of Directors and Corporation Officers

The following table gives information about each Board member and the senior officers of the Fund. The tables separately list Board members who are "interested persons" of the Fund (i.e., "Interested" Board members) and those who are not (i.e., "Independent" Board members). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA. The Federated Fund Complex consists of 138 investment company portfolios. Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Board member: oversees all portfolios in the Federated Fund Complex; serves for an indefinite term; and also serves as a Board member of the following investment company complexes: Banknorth Funds--four portfolios; Golden Oak© Family of Funds--seven portfolios; Regions Morgan Keegan Select Funds--nine portfolios; Riggs Funds--eight portfolios; and WesMark Funds--five portfolios. The Fund's Statement of Additional Information includes additional information about Corporation Directors and is available, without charge and upon request, by calling 1-800-341-7400.

INTERESTED DIRECTORS BACKGROUND

Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
John F. Donahue* Birth Date: July 28, 1924 CHAIRMAN AND DIRECTOR Began serving: May 1989	Principal Occupations: Chairman and Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.
J. Christopher Donahue* Birth Date: April 11, 1949 PRESIDENT AND DIRECTOR Began serving: May 1989	Principal Occupations: Principal Executive Officer and President of the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief Executive Officer and Director, Federated Investors, Inc.
Lawrence D. Ellis, M.D.* Birth Date: October 11, 1932 3471 Fifth Avenue Suite 1111 Pittsburgh, PA DIRECTOR Began serving: May 1989	Principal Occupations: Director or Trustee of the Federated Fund Complex; Professor of Medicine, University of Pittsburgh; Medical Director, University of Pittsburgh Medical Center Downtown; Hematologist, Oncologist and Internist, University of Pittsburgh Medical Center. Other Directorships Held: Member, National Board of Trustees, Leukemia Society of America. Previous Positions: Trustee, University of Pittsburgh; Director, University of Pittsburgh Medical Center.

* Family relationships and reasons for "interested" status: John F. Donahue is the father of J. Christopher Donahue; both are "interested" due to the positions they hold with Federated Investors, Inc. and its subsidiaries. Lawrence D. Ellis, M.D. is "interested" because his son-in-law is employed by the Fund's principal underwriter, Federated Securities Corp.

INDEPENDENT DIRECTORS BACKGROUND

Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
Thomas G. Bigley Birth Date: February 3, 1934 15 Old Timber Trail Pittsburgh, PA DIRECTOR Began serving: November 1994	Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director, Member of Executive Committee, Children's Hospital of Pittsburgh; Director, University of Pittsburgh. Previous Position: Senior Partner, Ernst & Young LLP.
John T. Conroy, Jr. Birth Date: June 23, 1937 Grubb & Ellis/Investment Properties Corporation 3838 North Tamiami Trail Suite 402 Naples, FL DIRECTOR Began serving: August 1991	Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman of the Board, Investment Properties Corporation; Partner or Trustee in private real estate ventures in Southwest Florida. Previous Positions: President, Investment Properties Corporation; Senior Vice President, John R. Wood and Associates, Inc., Realtors; President, Naples Property Management, Inc. and Northgate Village Development Corporation.
Nicholas P. Constantakis Birth Date: September 3, 1939 175 Woodshire Drive Pittsburgh, PA DIRECTOR Began serving: February 1998	Principal Occupations: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director and Member of the Audit Committee, Michael Baker Corporation (engineering and energy services worldwide). Previous Position: Partner, Andersen Worldwide SC.
John F. Cunningham Birth Date: March 5, 1943 353 El Brillo Way Palm Beach, FL DIRECTOR Began serving: January 1999	Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc.
Peter E. Madden Birth Date: March 16, 1942 One Royal Palm Way 100 Royal Palm Way Palm Beach, FL DIRECTOR Began serving: August 1991	Principal Occupation: Director or Trustee of the Federated Fund Complex; Management Consultant. Other Directorships Held: Board of Overseers, Babson College. Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange.
Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 80 South Road Westhampton Beach, NY DIRECTOR Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant; Executive Vice President, DVC Group, Inc. (marketing communications and technology) (prior to 9/1/00). Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University.
John E. Murray, Jr., J.D., S.J.D. Birth Date: December 20, 1932 Chancellor, Duquesne University Pittsburgh, PA DIRECTOR Began serving: February 1995	Principal Occupations: Director or Trustee of the Federated Fund Complex; Chancellor and Law Professor, Duquesne University; Consulting Partner, Mollica & Murray. Other Directorships Held: Director, Michael Baker Corp. (engineering, construction, operations and technical services). Previous Positions: President, Duquesne University; Dean and Professor of Law, University of Pittsburgh School of Law; Dean and Professor of Law, Villanova University School of Law.
Marjorie P. Smuts Birth Date: June 21, 1935 4905 Bayard Street Pittsburgh, PA DIRECTOR Began serving: May 1989	Principal Occupations: Director or Trustee of the Federated Fund Complex; Public Relations/Marketing Consultant/Conference Coordinator. Previous Positions: National Spokesperson, Aluminum Company of America; television producer; President, Marj Palmer Assoc.; Owner, Scandia Bord.
John S. Walsh Birth Date: November 28, 1957 2604 William Drive Valparaiso, IN DIRECTOR Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Previous Position: Vice President, Walsh & Kelly, Inc.

OFFICERS

Name Birth Date Positions Held with Corporation Date Service Began	Principal Occupation(s) and Previous Position(s)
Edward C. Gonzales Birth Date: October 22, 1930 EXECUTIVE VICE PRESIDENT Began serving: June 1995	Principal Occupations: Executive Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Trustee, Federated Administrative Services. Previous Positions: President and Trustee or Director of some of the Funds in the Federated Fund Complex; CEO and Chairman, Federated Administrative Services.
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Began serving: May 1989	Principal Occupations: Executive Vice President and Secretary of the Federated Fund Complex; Executive Vice President, Secretary and Director, Federated Investors, Inc.
Richard J. Thomas Birth Date: June 17, 1954 TREASURER Began serving: November 1998	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services.
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Began serving: August 2002	Principal Occupations: Vice Chairman or President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc. and Director and Chief Executive Officer, Federated Securities Corp.
William D. Dawson III Birth Date: March 3, 1949 CHIEF INVESTMENT OFFICER Began serving: November 1998	Principal Occupations: Chief Investment Officer of this Fund and various other Funds in the Federated Fund Complex; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp., Federated Investment Management Company and Passport Research, Ltd. Previous Positions: Executive Vice President and Senior Vice President, Federated Investment Counseling Institutional Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.
Name Birth Date Positions Held with Corporation Date Service Began	Principal Occupation(s) and Previous Position(s)
Deborah A. Cunningham Birth Date: September 15, 1959 VICE PRESIDENT Began serving: November 1998	Deborah A. Cunningham has been the Fund's Portfolio Manager since August 1989. She is Vice President of the Corporation. Ms. Cunningham joined Federated in 1981 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1997. Ms. Cunningham served as a Portfolio Manager and a Vice President of the Adviser from 1993 through 1996. Ms. Cunningham is a Chartered Financial Analyst and received her M.S.B.A. in Finance from Robert Morris College.
Mary Jo Ochson Birth Date: September 12, 1953 VICE PRESIDENT Began serving: November 1998	Mary Jo Ochson is Vice President of the Corporation. Ms. Ochson joined Federated in 1982 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1996. From 1988 through 1995, Ms. Ochson served as a Portfolio Manager and a Vice President of the Fund's Adviser. Ms. Ochson is a Chartered Financial Analyst and received her M.B.A. in Finance from the University of Pittsburgh.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.

Federated Investors
World-Class Investment Manager

Prime Cash Series
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 147551105

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

28566 (7/03)

Federated Investors
World-Class Investment Manager

Treasury Cash Series

A Portfolio of Cash Trust Series, Inc.

ANNUAL SHAREHOLDER REPORT

May 31, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

INDEPENDENT AUDITORS' REPORT

BOARD OF DIRECTORS AND OFFICERS

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Financial Highlights

(For a Share Outstanding Throughout Each Period)

Year Ended May 31	2003		2002		2001		2000		1999
Net Asset Value, Beginning of Period	$1.00		$1.00		$1.00		$1.00		$1.00
Income From Investment Operations:
Net investment income	0.01		0.02		0.05		0.04		0.04
Net realized and unrealized gain (loss) on investments	0.00	1	0.00	1	--		--		--
TOTAL FROM INVESTMENT OPERATIONS	0.01		0.02		0.05		0.04		0.04
Less Distributions:
Distributions from net investment income	(0.01	)	(0.02	)	(0.05	)	(0.04	)	(0.04	)
Distributions from net realized gain on investments	(0.00	)1	(0.00	)1	--		--		--
TOTAL DISTRIBUTIONS	(0.01	)	(0.02	)	(0.05	)	(0.04	)	(0.04	)
Net Asset Value, End of Period	$1.00		$1.00		$1.00		$1.00		$1.00
Total Return2	0.57	%	1.67	%	5.03	%	4.47	%	4.21	%
Ratios to Average Net Assets:
Expenses	1.05	%	1.03	%	1.04	%	1.01	%	1.00	%
Net investment income	0.54	%	1.63	%	4.91	%	4.37	%	4.11	%
Expense waiver/reimbursement3	0.05	%	--		0.01	%	0.04	%	0.07	%
Supplemental Data:
Net assets, end of period (000 omitted)	$491,107		$606,949		$977,293		$850,062		$969,592

1 Represents less than $0.01.

2 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

3 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

May 31, 2003

Principal Amount				Value
			U.S. TREASURY--25.5%
			U.S. Treasury Bills--8.3%1
$	41,000,000		1.075% - 1.175%, 8/7/2003 -- 11/28/2003	$	40,849,623
			U.S. Treasury Bonds--2.1%
	10,000,000		11.125% - 11.875%, 8/15/2003 -- 11/15/2003		10,289,254
			U.S. Treasury Notes--15.1%
	73,500,000		2.750% - 5.750%, 8/15/2003 -- 5/31/2004		74,339,307
			TOTAL U.S. TREASURY		125,478,184
			REPURCHASE AGREEMENTS--74.3%
	22,000,000		Interest in $500,000,000 joint repurchase agreement with ABN AMRO Bank NV, New York, 1.210%, dated 5/30/2003, to be repurchased at $22,002,218 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 11/15/2022		22,000,000
	22,000,000		Interest in $575,000,000 joint repurchase agreement with BNP Paribas Securities Corp., 1.270%, dated 5/30/2003, to be repurchased at $22,002,328 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 05/15/2030		22,000,000
	22,000,000		Interest in $350,000,000 joint repurchase agreement with Banc One Capital Markets, Inc., 1.280%, dated 5/30/2003, to be repurchased at $22,002,347 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 4/15/2032		22,000,000
	6,500,000	2	Interest in $179,000,000 joint repurchase agreement with Bank of America LLC, 1.170%, dated 4/28/2003, to be repurchased at $6,513,309 on 6/30/2003, collateralized by a U.S. Treasury Obligation with maturity of 5/15/2016		6,500,000
	5,000,000	2	Interest in $135,000,000 joint repurchase agreement with Bank of America LLC, 1.170%, dated 4/30/2003, to be repurchased at $5,009,913 on 6/30/2003, collateralized by a U.S. Treasury Obligation with maturity of 2/15/2020		5,000,000
	11,000,000		Interest in $1,000,000,000 joint repurchase agreement with Bank of America LLC, 1.250%, dated 5/30/2003, to be repurchased at $11,001,146 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 8/15/2020		11,000,000
	22,000,000		Interest in $650,000,000 joint repurchase agreement with Bank of Nova Scotia, Toronto, 1.270%, dated 5/30/2003, to be repurchased at $22,002,328 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 11/15/2028		22,000,000
	34,269,000		Interest in $1,742,000,000 joint repurchase agreement with Barclays Capital, Inc., 1.280%, dated 5/30/2003, to be repurchased at $34,272,655 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 05/15/2030		34,269,000
	9,000,000	2	Interest in $249,000,000 joint repurchase agreement with Deutsche Bank Securities, Inc., 1.150%, dated 5/6/2003, to be repurchased at $9,014,663 on 6/26/2003, collateralized by U.S. Treasury Obligations with various maturities to 08/15/2013		9,000,000
Principal Amount				Value
			REPURCHASE AGREEMENTS--continued
$	9,000,000	2	Interest in $258,000,000 joint repurchase agreement with Deutsche Bank Securities, Inc., 1.160%, dated 5/15/2003, to be repurchased at $9,022,330 on 7/31/2003, collateralized by U.S. Treasury Obligations with various maturities to 8/15/2028	$	9,000,000
	45,000,000		Interest in $1,000,000,000 joint repurchase agreement with Deutsche Bank Securities, Inc., 1.260%, dated 5/30/2003, to be repurchased at $45,004,725 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 5/15/2005		45,000,000
	25,000,000		Interest in $1,400,000,000 joint repurchase agreement with Deutsche Bank Securities, Inc., 1.270%, dated 5/30/2003, to be repurchased at $25,002,646 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 8/15/2026		25,000,000
	22,000,000		Interest in $650,000,000 joint repurchase agreement with J.P. Morgan Securities, Inc., 1.250%, dated 5/30/2003, to be repurchased at $22,002,292 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 11/15/2012		22,000,000
	22,000,000		Interest in $500,000,000 joint repurchase agreement with Merrill Lynch Government Securities, 1.220%, dated 5/30/2003, to be repurchased at $22,002,237 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 2/15/2013		22,000,000
	22,000,000		Interest in $625,000,000 joint repurchase agreement with Societe Generale, New York, 1.280%, dated 5/30/2003, to be repurchased at $22,002,347 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 08/15/2014		22,000,000
	22,000,000		Interest in $500,000,000 joint repurchase agreement with UBS Warburg LLC, 1.260%, dated 5/30/2003, to be repurchased at $22,002,310 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 09/18/2003		22,000,000
	22,000,000		Interest in $150,000,000 joint repurchase agreement with Wachovia Securities, Inc., 1.210%, dated 5/30/2003, to be repurchased at $22,002,218 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 11/15/2026		22,000,000
	22,000,000		Interest in $500,000,000 joint repurchase agreement with WestLB AG, 1.250%, dated 5/30/2003, to be repurchased at $22,002,292 on 6/2/2003, collateralized by U.S. Treasury Obligations with various maturities to 02/15/2012		22,000,000
			TOTAL REPURCHASE AGREEMENTS		364,769,000
			TOTAL INVESTMENTS--99.8% (AT AMORTIZED COST)3		490,247,184
			OTHER ASSETS AND LIABILITIES -- NET--0.2%		859,553
			TOTAL NET ASSETS--100%	$	491,106,737

1 These issues show the rate of discount at the time of purchase.

2 Although final maturities fall beyond seven days, a liquidity feature is included in each transaction to permit termination of the repurchase agreement within seven days.

3 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at May 31, 2003.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

May 31, 2003

Assets:
Investments in repurchase agreements	$	364,769,000
Investments in securities		125,478,184
Total investments in securities, at amortized cost and value			$	490,247,184
Cash				105,349
Income receivable				1,159,996
Receivable for shares sold				199,785
TOTAL ASSETS				491,712,314
Liabilities:
Payable for shares redeemed		398,215
Income distribution payable		29,364
Payable for transfer and dividend disbursing agent fees and expenses		7,667
Payable for portfolio accounting fees		8,260
Payable for distribution services fee		42,017
Payable for shareholder services fee		105,041
Payable for directors'/trustees' fees		782
Accrued expenses		14,231
TOTAL LIABILITIES				605,577
Net assets for 491,069,097 shares outstanding			$	491,106,737
Net Assets Consist of:
Paid in capital			$	491,069,097
Undistributed net investment income				37,640
TOTAL NET ASSETS			$	491,106,737
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$491,106,737 ÷ 491,069,097 shares outstanding				$1.00

See Notes which are an integral part of the Financial Statements

Statement of Operations

Year Ended May 31, 2003

Investment Income:
Interest				$	8,975,712
Expenses:
Investment adviser fee	$	2,811,400
Administrative personnel and services fee		422,834
Custodian fees		48,119
Transfer and dividend disbursing agent fees and expenses		641,142
Directors'/Trustees' fees		7,495
Auditing fees		12,305
Legal fees		5,138
Portfolio accounting fees		97,728
Distribution services fee		562,280
Shareholder services fee		1,405,700
Share registration costs		104,863
Printing and postage		42,995
Insurance premiums		2,041
Taxes		53,408
Miscellaneous		15,092
TOTAL EXPENSES		6,232,540
Waiver of investment adviser fee		(301,049	)
Net expenses					5,931,491
Net investment income					3,044,221
Net realized gain on investments					312,819
Change in net assets resulting from operations				$	3,357,040

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Year Ended May 31		2003			2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	3,044,221		$	12,427,164
Net realized gain on investments		312,819			533,247
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		3,357,040			12,960,411
Distributions to Shareholders:
Distributions from net investment income		(3,006,581	)		(12,427,164	)
Distributions from net realized gain on investments		(312,819	)		(533,247	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(3,319,400	)		(12,960,411	)
Share Transactions:
Proceeds from sale of shares		1,920,703,731			2,801,372,885
Net asset value of shares issued to shareholders in payment of distributions declared		3,045,323			11,239,610
Cost of shares redeemed		(2,039,629,084	)		(3,182,956,416	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(115,880,030	)		(370,343,921	)
Change in net assets		(115,842,390	)		(370,343,921	)
Net Assets:
Beginning of period		606,949,127			977,293,048
End of period (including undistributed net investment income of $37,640 and $0, respectively)	$	491,106,737		$	606,949,127

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

May 31, 2003

ORGANIZATION

Cash Trust Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Corporation consists of four portfolios. The financial statements included herein are only those of Treasury Cash Series (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is to provide current income consistent with stability of principal and liquidity.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP").

Investment Valuation

The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Directors (the "Directors"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date.

Premium and Discount Amortization

All premiums and discounts are amortized/accreted.

Federal Taxes

It is the Fund's policy to comply with the subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2003, there was $12,500,000,000 par value shares ($0.001 per share) authorized. Capital paid-in aggregated $491,069,097. Transactions in capital stock were as follows:

Year Ended May 31	2003		2002
Shares sold	1,920,703,731		2,801,372,885
Shares issued to shareholders in payment of distributions declared	3,045,323		11,239,610
Shares redeemed	(2,039,629,084	)	(3,182,956,416	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(115,880,030	)	(370,343,921	)

FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets during the years ended May 31, 2003 and May 31, 2002, was as follows:

	2003	2002
Ordinary income1	$3,309,876	$12,960,411
Long-term capital gain	$  9,524	--

1 For tax purposes, short-term capital gain distributions are considered ordinary income.

As of May 31, 2003, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income $67,004

OTHER TAXES

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment Adviser fee equal to 0.50% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will reimburse Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's shares. The Plan provides that the Fund may incur distribution expenses up to 0.35% of the average daily net assets of the Fund, annually, to reimburse FSC.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this waiver at any time at its sole discretion.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

FEDERAL INCOME TAX INFORMATION (UNAUDITED)

The Fund hereby designates $9,524 as long-term capital gain dividends for the year ended May 31, 2003.

Independent Auditors' Report

TO THE BOARD OF DIRECTORS OF CASH TRUST SERIES, INC. AND SHAREHOLDERS OF TREASURY CASH SERIES:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Treasury Cash Series (the "Fund") (a portfolio of the Cash Trust Series, Inc.) as of May 31, 2003, the related statement of operations for the year then ended, the statement of changes in net assets for the two years in the period ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to provide 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 the securities owned at May 31, 2003, 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 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 the Fund as of May 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts
July 11, 2003

Board of Directors and Corporation Officers

The following table gives information about each Board member and the senior officers of the Fund. The tables separately list Board members who are "interested persons" of the Fund (i.e., "Interested" Board members) and those who are not (i.e., "Independent" Board members). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA. The Federated Fund Complex consists of 138 investment company portfolios. Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Board member: oversees all portfolios in the Federated Fund Complex; serves for an indefinite term; and also serves as a Board member of the following investment company complexes: Banknorth Funds--four portfolios; Golden Oak Family of Funds--seven portfolios; Regions Morgan Keegan Select Funds--nine portfolios; Riggs Funds--eight portfolios; and WesMark Funds--five portfolios. The Fund's Statement of Additional Information includes additional information about Corporation Directors and is available, without charge and upon request, by calling 1-800-341-7400.

INTERESTED DIRECTORS BACKGROUND

Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
John F. Donahue* Birth Date: July 28, 1924 CHAIRMAN AND DIRECTOR Began serving: August 2001	Principal Occupations: Chairman and Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.
J. Christopher Donahue* Birth Date: April 11, 1949 PRESIDENT AND DIRECTOR Began serving: August 2001	Principal Occupations: Principal Executive Officer and President of the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief Executive Officer and Director, Federated Investors, Inc.
Lawrence D. Ellis, M.D.* Birth Date: October 11, 1932 3471 Fifth Avenue Suite 1111 Pittsburgh, PA DIRECTOR Began serving: August 2001	Principal Occupations: Director or Trustee of the Federated Fund Complex; Professor of Medicine, University of Pittsburgh; Medical Director, University of Pittsburgh Medical Center Downtown; Hematologist, Oncologist and Internist, University of Pittsburgh Medical Center. Other Directorships Held: Member, National Board of Trustees, Leukemia Society of America. Previous Positions: Trustee, University of Pittsburgh; Director, University of Pittsburgh Medical Center.

* Family relationships and reasons for "interested" status: John F. Donahue is the father of J. Christopher Donahue; both are "interested" due to the positions they hold with Federated Investors, Inc. and its subsidiaries. Lawrence D. Ellis, M.D. is "interested" because his son-in-law is employed by the Fund's principal underwriter, Federated Securities Corp.

INDEPENDENT DIRECTORS BACKGROUND

Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
Thomas G. Bigley Birth Date: February 3, 1934 15 Old Timber Trail Pittsburgh, PA DIRECTOR Began serving: August 2001	Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director, Member of Executive Committee, Children's Hospital of Pittsburgh; Director, University of Pittsburgh. Previous Position: Senior Partner, Ernst & Young LLP.
John T. Conroy, Jr. Birth Date: June 23, 1937 Grubb & Ellis/Investment Properties Corporation 3838 North Tamiami Trail Suite 402 Naples, FL DIRECTOR Began serving: August 2001	Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman of the Board, Investment Properties Corporation; Partner or Trustee in private real estate ventures in Southwest Florida. Previous Positions: President, Investment Properties Corporation; Senior Vice President, John R. Wood and Associates, Inc., Realtors; President, Naples Property Management, Inc. and Northgate Village Development Corporation.
Nicholas P. Constantakis Birth Date: September 3, 1939 175 Woodshire Drive Pittsburgh, PA DIRECTOR Began serving: August 2001	Principal Occupations: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director and Member of the Audit Committee, Michael Baker Corporation (engineering and energy services worldwide). Previous Position: Partner, Andersen Worldwide SC.
John F. Cunningham Birth Date: March 5, 1943 353 El Brillo Way Palm Beach, FL DIRECTOR Began serving: August 2001	Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc.
Peter E. Madden Birth Date: March 16, 1942 One Royal Palm Way 100 Royal Palm Way Palm Beach, FL DIRECTOR Began serving: August 2001	Principal Occupation: Director or Trustee of the Federated Fund Complex; Management Consultant. Other Directorships Held: Board of Overseers, Babson College. Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange.
Name Birth Date Address Positions Held with Corporation Date Service Began	Principal Occupation(s), Other Directorships Held and Previous Position(s)
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 80 South Road Westhampton Beach, NY DIRECTOR Began serving: August 2001	Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant; Executive Vice President, DVC Group, Inc. (marketing communications and technology) (prior to 9/1/00). Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University.
John E. Murray, Jr., J.D., S.J.D. Birth Date: December 20, 1932 Chancellor, Duquesne University Pittsburgh, PA DIRECTOR Began serving: August 2001	Principal Occupations: Director or Trustee of the Federated Fund Complex; Chancellor and Law Professor, Duquesne University; Consulting Partner, Mollica & Murray. Other Directorships Held: Director, Michael Baker Corp. (engineering, construction, operations and technical services). Previous Positions: President, Duquesne University; Dean and Professor of Law, University of Pittsburgh School of Law; Dean and Professor of Law, Villanova University School of Law.
Marjorie P. Smuts Birth Date: June 21, 1935 4905 Bayard Street Pittsburgh, PA DIRECTOR Began serving: August 2001	Principal Occupations: Director or Trustee of the Federated Fund Complex; Public Relations/Marketing Consultant/Conference Coordinator. Previous Positions: National Spokesperson, Aluminum Company of America; television producer; President, Marj Palmer Assoc.; Owner, Scandia Bord.
John S. Walsh Birth Date: November 28, 1957 2604 William Drive Valparaiso, IN DIRECTOR Began serving: August 2001	Principal Occupations: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Previous Position: Vice President, Walsh & Kelly, Inc.

OFFICERS

Name Birth Date Address Positions Held with Corporation	Principal Occupation(s) and Previous Position(s)
Edward C. Gonzales Birth Date: October 22, 1930 EXECUTIVE VICE PRESIDENT Began serving: August 2001	Principal Occupations: Executive Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Trustee, Federated Administrative Services. Previous Positions: President and Trustee or Director of some of the Funds in the Federated Fund Complex; CEO and Chairman, Federated Administrative Services.
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Began serving: August 2001	Principal Occupations: Executive Vice President and Secretary of the Federated Fund Complex; Executive Vice President, Secretary and Director, Federated Investors, Inc.
Richard J. Thomas Birth Date: June 17, 1954 TREASURER Began serving: August 2001	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services.
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Began serving: August 2001	Principal Occupations: Vice Chairman or President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc. and Director and Chief Executive Officer, Federated Securities Corp.
William D. Dawson III Birth Date: March 3, 1949 CHIEF INVESTMENT OFFICER Began serving: August 2001	Principal Occupations: Chief Investment Officer of this Fund and various other Funds in the Federated Fund Complex; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp., Federated Investment Management Company and Passport Research, Ltd. Previous Positions: Executive Vice President and Senior Vice President, Federated Investment Counseling Institutional Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.
Deborah A. Cunningham Birth Date: September 15, 1959 VICE PRESIDENT Began serving: August 2001	Deborah A. Cunningham has been the Fund's Portfolio Manager since August 1989. She is Vice President of the Corporation. Ms. Cunningham joined Federated in 1981 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1997. Ms. Cunningham served as a Portfolio Manager and a Vice President of the Adviser from 1993 through 1996. Ms. Cunningham is a Chartered Financial Analyst and received her M.S.B.A. in Finance from Robert Morris College.
Mary Jo Ochson Birth Date: September 12, 1953 VICE PRESIDENT Began serving: August 2001	Mary Jo Ochson is Vice President of the Corporation. Ms. Ochson joined Federated in 1982 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1996. From 1988 through 1995, Ms. Ochson served as a Portfolio Manager and a Vice President of the Fund's Adviser. Ms. Ochson is a Chartered Financial Analyst and received her M.B.A. in Finance from the University of Pittsburgh.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.

Federated Investors
World-Class Investment Manager

Treasury Cash Series
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 147551402

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

28567 (7/03)

Item 2.     Code of Ethics

            Not Applicable

Item 3.     Audit Committee Financial Expert

            Not Applicable

Item 4.     Principal Accountant Fees and Services

            Not Applicable

Items 5-6   [Reserved]

Item 7.     Disclosure of Proxy Voting Policies and Procedures for
            Closed-End Management Investment Companies

            Not Applicable

Item 8.     [Reserved]

Item 9.     Controls and Procedures

(a)  The   registrant's   President  and  Treasurer   have  concluded  that  the
     registrant's  disclosure  controls and procedures (as defined in rule 30a-2
     under the  Investment  Company Act of 1940 (the  "Act")) are  effective  in
     design  and  operation  and  are  sufficient  to  form  the  basis  of  the
     certifications  required  by Rule  30a-2  under  the  Act,  based  on their
     evaluation of these  disclosure  controls and procedures  within 90 days of
     the filing date of this report on Form N-CSR.

(b)  There were no significant changes in the registrant's internal controls, or
     the internal  controls of its service  providers,  or in other factors that
     could  significantly  affect these controls subsequent to the date of their
     evaluation,  including any  corrective  actions with regard to  significant
     deficiencies and material weaknesses.

Item 10.    Exhibits


SIGNATURES

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

Registrant  Cash Trust Series, Inc.

By          /S/ Richard J. Thomas, Principal Financial Officer

Date        July 28, 2003

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment  Company  Act of  1940,  this  report  has been  signed  below by the
following  persons on behalf of the  registrant and in the capacities and on the
dates indicated.


By          /S/ J. Christopher Donahue, Principal Executive Officer


Date        July 28, 2003


By          /S/ Richard J. Thomas, Principal Financial Officer


Date        July 28, 2003