UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-4229
Churchill Cash Reserves Trust
(Exact name of Registrant as specified in charter)
380 Madison Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)
Joseph P. DiMaggio
380 Madison Avenue
New York, New York 10017
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 697-6666
Date of fiscal year end: 9/30
Date of reporting period: 9/30/03
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL
REPORT
SEPTEMBER 30, 2003
CHURCHILL CASH RESERVES TRUST
PRIVACY NOTICE (unaudited)
Our Privacy Policy. In providing services to you as an individual who owns or is
considering investing in shares of a fund of the Aquila SM Group of Funds, we
collect certain nonpublic personal information about you. Our policy is to keep
this information strictly safeguarded and confidential, and to use or disclose
it only as necessary to provide services to you or as otherwise permitted by
law. Our privacy policy applies equally to former shareholders and persons who
inquire about a fund.
Information We Collect. "Nonpublic personal information" is personally
identifiable financial information about you as an individual or your family.
The kinds of nonpublic personal information we have about you may include the
information you provide us on your share purchase application or in telephone
calls or correspondence with us, and information about your fund transactions
and holdings, how you voted your shares and the account where your shares are
held.
Information We Disclose. We disclose nonpublic personal information about you to
companies that provide necessary services to your fund, such as the fund's
transfer agent, distributor, investment adviser or sub-adviser and to our
affiliates, as permitted or required by law, or as authorized by you. We also
may disclose this information to another fund of the Aquilasm Group of Funds or
its distributor, or to the broker-dealer that holds your fund shares, under
agreements that permit them to use the information only to provide you
information about your fund, other funds in the Aquilasm Group of Funds or new
services we are offering which may be of interest to you. Any other use is
strictly prohibited. We do not sell information about you or any of our fund
shareholders to anyone.
How We Safeguard Your Information. We restrict access to nonpublic personal
information about you to only those persons who need it to provide services to
you or who are permitted by law to receive it. We maintain physical, electronic
and procedural safeguards to protect the confidentiality of all nonpublic
personal information we have about you.
If you have any questions regarding our Privacy Policy, please contact us at
1-800-437-1020.
Independent Auditors' Report
The Board of Trustees and Shareholders of
Churchill Cash Reserves Trust:
We have audited the accompanying statement of assets and liabilities of
Churchill Cash Reserves Trust as of September 30, 2003, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the years in the two year period then ended, and the
financial highlights for each of the years in the five year period then ended.
These financial statements are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements 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 obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Churchill Cash Reserves Trust as of September 30, 2003, the results of its
operations for the year then ended, the changes in net assets for each of the
years in the two year period then ended, and the financial highlights for each
of the years in the five year period then ended, in conformity with accounting
principles generally accepted in the United States of America.
/s/ KPMG LLP
- --------------
New York, New York
November 14, 2003
CHURCHILL CASH RESERVES TRUST
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2003
Cash and Net Assets -100.0% $1,002
Applicable to 1,002 shares outstanding (unlimited
number of $.01 par value shares authorized)
Net Asset Value Per Share $1.00
See accompanying notes to financial statements.
CHURCHILL CASH RESERVES TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
The Trust had no operations during the year.
See accompanying notes to financial statements.
CHURCHILL CASH RESERVES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30,
2003 2002
The Trust had no operations during the year.
NET ASSETS:
Beginning of period 1,002 1,002
End of period $ 1,002 $ 1,002
See accompanying notes to financial statements.
CHURCHILL CASH RESERVES TRUST
NOTES TO FINANCIAL STATEMENTS
Note A - Churchill Cash Reserves Trust (the "Trust"), a diversified, open-end
investment company, was organized on January 4, 1985, as a Massachusetts
business trust and is authorized to issue an unlimited number of shares. The
Trust commenced operations on July 9, 1985. The Trust ceased operations on
January 25, 2001 inasmuch as all shares outstanding, except for 1,002 shares
owned by Aquila Management Corporation, had been redeemed by shareholders.
Although the Trust is not conducting a public offering of its shares, it will
continue to exist as a Massachusetts business trust and maintain its
registration as an investment company. Administrative expenses incurred in
connection herewith, have been assumed by Aquila Management Corporation.
Note B - Since inception, the Trust has qualified as a regulated investment
company by complying with the provisions of the Internal Revenue Code applicable
to certain investment companies. The Trust made distributions of income and
security profits sufficient to relieve it from all, or substantially all,
Federal income and excise taxes.
CHURCHILL CASH RESERVES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED SEPTEMBER 30,
2003 2002 2001 2000 1999
Net Asset Value,
Beginning of Period $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Income from Investment
Operations:
Net investment income - - 0.0191 0.0561 0.0469
Less Distributions:
Dividends from net - - (0.0191) (0.0561) (0.0469)
Investment income
Net Asset Value,
End of Period $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Total Return - - 1.92% 5.75% 4.79%
Ratios/Supplemental Data
Net Assets, End of Period ($thousands) $1 $1 $1 $69,143 $76,356
Ratio of Expenses to Average Net Assets - - 0.61% 0.60% 0.60%
Ratio of Net Investment Income to Average Net Assets - - 5.88% 5.58% 4.70%
The expense and net investment income ratios without the effect of the Manager's voluntary
waiver of a portion of fees were:
Ratio of Expenses to Average Net Assets - - 0.74% 0.69% 0.66%
Ratio of Net Investment Income to Average Net Assets - - 5.75% 5.49% 4.65%
Note: Banc One Investment Advisors Corporation served as the Trust's Investment
Adviser until June 5, 1998, when, pursuant to new management arrangements,
it was appointed as the Trust's Investment Sub-Adviser. On January 28,
2001, Banc One Investment Advisors Corporation resigned as the Trust's
Sub-Adviser.
See accompanying notes to financial statements.
Additional Information (unaudited)
Trustees(1)
and Officers
Number of
Positions Held Portfolios Other Directorships
with in Fund Held by Trustee
Trust and Complex (The position held is
Name, Address(2) Length of Principal Occupation(s) Overseen a directorship unless
and Date of Birth Service(3) During Past 5 Years by Trustee indicated otherwise.)
Interested
Trustees(4)
Lacy B. Herrmann President and Founder and Chairman of the 12 Director or trustee, OCC
New York, NY Chairman of Board, Aquila Management Accumulation Trust, Oppenheimer
(05/12/29) the Board of Corporation, the sponsoring Quest Value Funds Group,
Trustees since organization and Manager or Oppenheimer Small Cap Value
1985 Administrator and/or Adviser or Fund, Oppenheimer Midcap Fund,
Sub-Adviser to each fund of the and Oppenheimer Rochester Group
Aquilasm Group of Funds (5) and of Funds.
Founder, Chairman of the Board
of Trustees and (currently or
until 1998) President of each
since its establishment,
beginning in 1984; Director of
the Distributor since 1981 and
formerly Vice President or
Secretary, 1981-1998; President
and a Director, STCM Management
Company, Inc., sponsor and
investment adviser to Capital
Cash Management Trust since
1973; Trustee Emeritus, Brown
University and active in
university, school and
charitable organizations.
Non-interested
Trustees
Carroll F. Knicely Trustee President, Associated 1 West Kentucky Corporation;
Glasgow, KY since 1998 Publications Inc, Glasgow, South Gate Plaza, Inc.;
(12/08/28) Kentucky; director and member, Knicely and Knicely, Inc.
Executive Board of West Kentucky
Corporation and director and
Secretary-Treasurer, South Gate
Plaza, Inc. (owner and developer
of shopping centers and
commercial real estate);
director, Vice President and
Treasurer, Knicely and Knicely,
Inc. (owner and developer of
rental properties and
residential real estate); former
trustee, Cambellsville
University; formerly Secretary
of Commerce and Commissioner of
Commerce, Commonwealth of
Kentucky.
Theodore T. Mason Trustee since Executive Director, East Wind 6 Trustee, OCC Accumulation
New York, NY 1985 Power Partners LTD since 1994 Trust.
(11/24/35) and Louisiana Power Partners,
LLC since 1999; President,
Alumni Association of SUNY
Maritime College since 2002
(First Vice President,
2000-2001, Second Vice
President, 1998-2000) and
director of the same
organization since 1997;
Director, STCM Management
Company, Inc., since 1973; twice
national officer of Naval
Reserve Association, commanding
officer of four naval reserve
units and Captain, USNR (Ret);
director, The Navy League of the
United States New York Council
since 2002; trustee, The
Maritime Industry Museum at Fort
Schuyler and the Maritime
College at Fort Schuyler
Foundation, Inc. since 2000.
Officers
Diana P. Herrmann Senior Vice President and Chief Operating 7 None
New York, NY President Officer of the Manager since
(02/25/58) since 1999 and 1997, a Director since 1984,
Vice President Secretary since 1986 and
1988-1999 previously its Executive Vice
President, Senior Vice President
or Vice President, 1986-1997;
President, Senior Vice President
or Executive Vice President of
funds in the Aquilasm Group of
Funds since 1986; Director of
the Distributor since 1997;
trustee, Reserve Money-Market
Funds, 1999-2000 and Reserve
Private Equity Series,
1998-2000; active in mutual fund
and trade organizations and in
charitable and volunteer
organizations.
Joseph P. DiMaggio Chief Chief Financial Officer of the N/A N/A
New York, NY Financial Aquilasm Group of Funds since
(11/06/56) Officer since 2003 and Treasurer since 2000;
2003 and Controller, Van Eck Global
Treasurer Funds, 1993-2000.
since 2000
Edward M. W. Hines Secretary Partner, Hollyer Brady Smith & N/A N/A
New York, NY since 1985 Hines LLP, legal counsel to the
(12/16/39) Trust, since 1989; Secretary of
the Aquilasm Group of Funds.
John M. Herndon Assistant Assistant Secretary of the N/A N/A
New York, NY (12/17/39) Secretary Aquilasm Group of Funds since
since 1995 1995 and Vice President of the
four Aquila Money-Market Funds
since 1990; Vice President of
the Manager since 1990.
(1 ) The Trust's Statement of Additional Information includes additional
information about the Trustees and is available, without charge, upon request by
calling 800-437-1020 (toll free).
(2) The mailing address of each Trustee and officer is c/o Churchill Cash
Reserves Trust, 380 Madison Avenue, New York, NY 10017.
(3) Each Trustee holds office until the next annual meeting of shareholders or
until his or her successor is elected and qualifies. The term of office of each
officer is one year.
(4) Mr. Herrmann is an interested person of the Trust as that term is defined in
the 1940 Act as an officer of the Trust.
(5) In this material Pacific Capital Cash Assets Trust, Pacific Capital U.S.
Government Securities Cash Assets Trust, Pacific Capital Tax-Free Cash Assets
Trust and Capital Cash Management Trust, each of which is a money-market fund,
are called the "Aquila Money-Market Funds"; Hawaiian Tax-Free Trust, Tax-Free
Trust of Arizona, Tax-Free Trust of Oregon, Tax-Free Fund of Colorado, Churchill
Tax-Free Fund of Kentucky, Narragansett Insured Tax-Free Income Fund and
Tax-Free Fund For Utah, each of which is a tax-free municipal bond fund, are
called the "Aquila Bond Funds"; Aquila Rocky Mountain Equity Fund is an equity
fund; considered together, these 12 funds are called the "Aquilasm Group of
Funds."
ITEM 2. CODE OF ETHICS.
(a) As of September 30, 2003 (the end of the reporting period) the
Trust has adopted a code of ethics that applies to the Trust's
principal executive officer(s)and principal financial officer(s) and
persons performing similar functions ("Covered Officers") as defined
in the Aquila Group of Funds Code of Ethics for Principal Executive
and Senior Financial Officers under Section 406 of the Sarbanes-Oxley
Act of 2002.;
(f)(1) Pursuant to Item 10(a)(1), a copy of the Trust's Code of
Ethics that applies to the Trust's principal executive officer(s)
and principal financial officer(s) and persons performing similar
functions is included as an exhibit to its annual report on this
Form N-CSR;
(f)(2) The text of the Trust's Code of Ethics that applies to the
Trust's principal executive officer(s) and principal financial
officer(s) and persons performing similar functions has been posted
on its Internet website which can be found at the Trust's Internet
address at aquilafunds.com.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1)(ii) The Board of Trustees of the Trust has determined that it
does not have at least one audit committee financial expert serving on
its audit committee. The Trust does not have such a person serving on
the audit committee because none of the persons currently serving as
Trustees happens to have the technical accounting and auditing
expertise included in the definition of "audit committee financial
expert" recently adopted by the Securities and Exchange Commission
in connection with this Form N-CSR, and the Board has not heretofore
deemed it necessary to seek such a person for election to the Board.
The primary mission of the Board, which is that of oversight over the
operations and affairs of the Trust, confronts the Trustees with a
wide and expanding range of issues and responsibilities. The Trustees
believe that, accordingly, it is essential that the Board's membership
consist of persons with as extensive experience as possible in
fulfilling the duties and responsibilities of mutual fund directors and
audit committee members and, ideally, with extensive experience and
background relating to the economic and financial sectors and
securities in which the Trust invests, including exposure to the
financial and accounting matters commonly encountered with respect to
those sectors and securities. The Board believes that its current
membership satisfies those criteria. It recognizes that it would
also be helpful to have a member with the relatively focused accounting
and auditing expertise reflected in the applicable definition of "audit
committee
just as additional members with similarly focused technical
expertise in other areas relevant to the Trust's operations and affairs
would also contribute added value. However, the Board believes that
the Trust is better served, and its assets better employed, by a
policy of hiring experts in various areas, including the specialized
area of technical accounting and auditing matters, if and as the
Board identifies the need, rather than by seeking to expand its
numbers by adding technical experts in the areas constituting
its domain of responsibility. The Trust's Audit Committee Charter
explicitly authorizes the Committee to retain such experts as it deems
necessary in fulfilling its duties under the Charter.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
905: Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the registrant's disclosure controls
and procedures (as defined in Rule 30a-2(c) under the Investment Company
Act of1940) as of a date within 90 days of the fling of this report, the r
registrant's
chief financial and executive officers have concluded that
the disclosure controls and procedures of the registrant are appropriately
designed to ensure that information required to be disclosed in the
registrant's reports that are filed under the Securities Exchange Act of
1934 are accumulated and communicated to registrant's management, including
its principal executive officer(s) and principal financial officer(s), to
allow timely decisions regarding required disclosure and is recorded,
processed, summarized and reported, within the time periods specified in
the rules and forms adopted by the Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect registrant's
internal
controls
subsequent to the date of the most recent evaluation, including
no significant
deficiencies or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(a)(1) Aquila Group of Funds Code of Ethics for Principal Executive and
Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of
2002.
(a)(2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act of
1940.
(b) Certifications of principal executive officer and principal financial
officer
as required by Rule 30a-2(b) under the Investment Company Act of 1940.
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.
CHURCHILL CASH RESERVES TRUST
By: /s/ Lacy B. Herrmann
- ---------------------------------
Chairman of the Board
December 8, 2003
By: /s/ Diana P. Herrmann
- ---------------------------------
President
December 8, 2003
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Chief Financial Officer
December 8, 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/ Lacy B. Herrmann
- ---------------------------------
Lacy B. Herrmann
Chairman of the Board
December 8, 2003
By: /s/ Diana P. Herrmann
- ---------------------------------
Diana P. Herrmann
President
December 8, 2003
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Joseph P. DiMaggio
Chief Financial Officer
December 8, 2003
CHURCHILL CASH RESERVES TRUST
EXHIBIT INDEX
(a)(1) Aquila Group of Funds Code of Ethics for Principal Executive
and Senior Financial Officers under Section 406 of the Sarbanes-Oxley
Act of 2002.
(a) (2) Certifications of principal executive officer
and principal financial officer as required by Rule 30a-2(a)
under the Investment Company Act of 1940.
(b) Certification of chief executive officer and chief financial
officer as required by Rule 30a-2(b) of the Investment Company Act
of 1940.