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 811-5011
Name of Fund: CMA California Municipal Money Fund
CMA Multi-State Municipal Series Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President, CMA
California Municipal Money Fund, 800 Scudders Mill Road, Plainsboro, NJ
08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 03/31/03
Date of reporting period: 04/01/02 - 3/31/03
Item 1 - Attach shareholder report
[LOGO] Merrill Lynch Investment Managers
Annual Report
March 31, 2003
CMA California
Municipal Money Fund
www.mlim.ml.com
TO OUR SHAREHOLDERS:
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For the year ended March 31, 2003, CMA California Municipal Money Fund paid
shareholders a net annualized yield of .85%.* As of March 31, 2003, the Fund's
7-day yield was .69%.
Economic Environment
During the six-month period ended March 31, 2003, equity and fixed income
markets and the domestic economy continued to be influenced strongly by
developments outside of the financial sector. The uncertainty that surrounded
the effectiveness of the weapons inspections by the United Nations and the
eventual onset of war with Iraq in mid-March weighed heavily on consumer and
corporate spending. Despite the increased volatility in the equity markets
because of geopolitical uncertainty, the Dow Jones Industrial Average and the
NASDAQ Composite Index were able to post positive gains for the period. However,
by March 31, 2003, both indexes were well off the highs reached in late November
2002.
Fixed income investors favored the very short end of the U.S. Treasury yield
curve because of its relative safety. Six-month and two-year U.S. Treasury bills
experienced solid gains that lowered yields on these instruments 43 basis points
(.43%) and 31 basis points, respectively. Finally, the Federal Open Market
Committee, has met four times since September 30, 2002, lowering interest rates
50 basis points at its meeting on November 6, 2002 and bringing the Federal
Funds borrowing rate to a historic low of 1.25%. Interestingly, at the Federal
Open Market Committee meeting on March 18, 2003, the Federal Reserve Board chose
not to issue its customary stated bias, which typically characterizes the
committee's current risk assessment for the economy. This may have left the door
open for the Federal Reserve Board to cut the Federal Funds rate between
meetings should conditions warrant.
Specific to California, the state's financial situation continued to concern the
major rating agencies during the period as both its long-term and short-term
credit ratings were lowered further. At March 31, 2003, the state legislature
continued to debate significant tax increases and budget reductions to close an
estimated $21 billion budget deficit for the current fiscal year. The
treasurer's office has indicated that it may need to issue $9 billion - $11
billion in revenue anticipation warrants this June to retire its currently
outstanding revenue anticipation notes and satisfy its financial obligations
during the June 2003 fiscal year end.
Investment Strategy
For the six-month period ended March 31, 2003, the short-term municipal market
experienced two distinct segments. Initially, short-term municipal yields moved
higher as a result of unusually heavy supply in the short end of the yield
curve. The State of California and the California Department of Water Resources
both marketed multi-billion dollar issues that pushed overall short-term
municipal yields to period highs by late October 2002. One-year note yields that
began the period in the 1.45% range rose to the 1.75% area, while the average
variable rate yield rose from 1.55% to 1.85%. However, from early November 2002
through period end, the increased uncertainty surrounding international events
and strong asset inflows
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
into the short end of the yield curve strengthened demand for these municipal
securities. This higher demand lowered the yield on a one-year fixed coupon note
to the 1.10% range, while the average variable rate yield fell to the 1.15%
range by period end. We maintained the Fund's average portfolio maturity in a
neutral range of 30 days - 50 days. This investment strategy was appropriate in
light of growing global uncertainties. Additionally, the flat nature of the
short-term yield curve offered little incentive to implement a more aggressive
investment stance.
Within the portfolio, fixed coupon securities with maturities predominately in
the six-month - nine-month range remained an important diversification tool and
provided an avenue to secure attractive yields through the first quarter of
2003. Two of our larger purchases in this sector were $120 million in State of
California Revenue Anticipation Notes with a June 2003 maturity and $70 million
in California Department of Water Resources bonds with a February 2003 maturity.
During this time, average variable rate yields, which adjust on a daily or
weekly basis, fell to a period low of .95% - 1.00% because of strong demand. The
Fund's fixed coupon securities, which included municipal notes, puts and
tax-exempt commercial paper, comprised approximately 30% of the Fund's assets
during the period and performed especially well as variable rate yields moved
lower. Finally, the Fund's portfolio strategy and asset allocation during the
six-month period ended March 31, 2003 provided shareholders with a
well-diversified portfolio of high credit quality securities and a stable net
asset value.
Looking forward, we will continue to closely monitor budget developments in
California. We expect that county and local governments will be increasing the
level of issuance during the upcoming summer note season as a result of an
expected decrease in state assistance. This increase in issuance could possibly
place significant upward pressure on California-specific short-term yields.
In Conclusion
We thank you for your continued support of CMA California Municipal Money Fund,
and we look forward to serving your investment needs in the months and years
ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Kenneth A. Jacob
Kenneth A. Jacob
Senior Vice President
/s/ John M. Loffredo
John M. Loffredo
Senior Vice President
/s/ Steven T. Lewis
Steven T. Lewis
Portfolio Manager
April 15, 2003
2
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (IN THOUSANDS)
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Face
State Amount Issue Value
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California-- $ 6,495 ABN Amro Munitops Certificates Trust, California, GO, Refunding, VRDN,
97.8% Series 2003-1, 1.15% due 2/01/2010 (a)(d) .............................................. $ 6,495
ABN Amro Munitops Certificates Trust, VRDN (a):
16,912 Series 1998-17, 1.15% due 7/05/2006 (c) ............................................ 16,912
5,000 Series 1998-25, 1.15% due 7/05/2006 (c) ............................................ 5,000
5,373 Series 1999-7, 1.15% due 7/04/2007 (b) ............................................. 5,373
10,000 Abag Finance Authority For Non-Profit Corporations, California, Lease Revenue
Bonds, Pass-Thru Obligations, VRDN, Series A, 1.15% due 7/01/2008 (a) .................. 10,000
16,900 Anaheim, California, Public Financing Authority Revenue Bonds, MERLOTS,
Series B1, 1.21% due 10/01/2022 (a)(c) ................................................. 16,900
15,000 Auburn, California, Union School District, COP, Refunding, VRDN,
1.15% due 12/01/2032 (a)(e) ............................................................ 15,000
47,000 California Community College Financing Authority, TRAN, Series A,
3% due 6/30/2003 ....................................................................... 47,152
California Educational Facilities Authority Revenue Bonds, VRDN (a):
10,900 (Life Chiropractic College), 1.17% due 1/01/2025 ................................... 10,900
4,000 (Pepperdine University), Series B, 1.13% due 11/01/2029 ............................ 4,000
6,400 (San Francisco Conservatory), 1.10% due 3/01/2025 .................................. 6,400
California HFA, Home Mortgage Revenue Bonds, VRDN (a):
4,200 AMT, Series J, 1.20% due 2/01/2033 ................................................. 4,200
10,600 AMT, Series M, 1.20% due 2/01/2025 ................................................. 10,600
12,800 AMT, Series M, 1.20% due 8/01/2033 ................................................. 12,800
15,000 AMT, Series Q, 1.30% due 8/01/2033 ................................................. 15,000
22,260 AMT, Series U, 1.20% due 2/01/2032 (e) ............................................. 22,260
1,200 Series F, 1.15% due 2/01/2033 (e) .................................................. 1,200
California HFA, M/F Housing Revenue Bonds, VRDN, AMT (a):
42,405 Series A, 1.23% due 2/01/2026 ...................................................... 42,405
13,900 Series A, 1.23% due 2/01/2035 ...................................................... 13,900
47,300 Series C, 1.20% due 2/01/2033 ...................................................... 47,300
California Health Facilities Financing Authority Revenue Bonds, FLOATS (a)(b):
22,265 Series 591, 1.18% due 3/01/2014 .................................................... 22,265
28,345 Series 592, 1.18% due 3/01/2021 .................................................... 28,345
3,335 California Infrastructure and Economic Development Bank Empowerment
Revenue Bonds (Gold Coast Baking Company Project), VRDN, AMT,
1.25% due 4/01/2012 (a) ................................................................ 3,335
Portfolio Abbreviations for CMA California Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
FLOATS Floating Rate Securities
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MERLOTS Municipal Extendible Receipt Liquidity
Option Tender Securities
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
ROCS Reset Option Certificates
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
3
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
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Face
State Amount Issue Value
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California California Infrastructure and Economic Development Bank Revenue Refunding
(continued) Bonds, VRDN (a):
$ 4,100 (Guided Discoveries Inc. Project), 1.15% due 6/01/2032 ............................ $ 4,100
37,300 (Independent System Operation Corporation Project), Series A,
1.25% due 4/01/2008 (b) ........................................................... 37,300
22,570 (Independent Systems Operator Corporation Project), Series B,
1.30% due 4/01/2008 (b) ........................................................... 22,570
31,795 (Independent Systems Operator Corporation Project), Series C,
1.10% due 4/01/2009 (b) ........................................................... 31,795
5,600 California Pollution Control Financing Authority, Environmental
Improvement Revenue Bonds (Atlantic Richfield Co. Project), VRDN, AMT,
1.20% due 12/01/2032 (a) .............................................................. 5,600
California Pollution Control Financing Authority, PCR, Refunding (Pacific Gas
and Electric), VRDN (a):
140,250 AMT, Series B, 1.20% due 11/01/2026 ............................................... 140,250
158,425 Series C, 1.20% due 11/01/2026 .................................................... 158,425
47,050 Series E, 1.25% due 11/01/2026 .................................................... 47,050
22,600 Series F, 1.25% due 11/01/2026 .................................................... 22,600
3,000 California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds (Atlantic Richfield Co. Project), VRDN, Series A,
1.18% due 12/01/2024 (a) .............................................................. 3,000
4,000 California Pollution Control Financing Authority, Solid Waste Disposal Revenue
Refunding Bonds (Waste Management Project), VRDN, AMT, Series A,
1.15% due 1/01/2022 (a) ............................................................... 4,000
70,000 California School Cash Reserve Program Authority Revenue Bonds, Series A,
3% due 7/03/2003 ...................................................................... 70,236
2,100 California School Facilities Financing Corporation, COP, Refunding (Capital
Improvement Financing Projects), VRDN, Series C, 1.05% due 7/01/2022 (a) .............. 2,100
California State, CP:
4,000 1.30% due 4/08/2003 ............................................................... 4,000
36,350 1.25% due 5/12/2003 ............................................................... 36,350
12,000 1.25% due 5/14/2003 ............................................................... 12,000
California State Department of Water Resources, Power Supply Revenue
Bonds (a):
75,000 FLOATS, Series 765, 1.15% due 5/01/2015 (d) ....................................... 75,000
1,400 VRDN, Series B-5, 1.15% due 5/01/2022 ............................................. 1,400
29,000 VRDN, Series C-2, 1.15% due 5/01/2022 (d) ......................................... 29,000
45,000 VRDN, Series C-4, 1.25% due 5/01/2022 ............................................. 45,000
1,800 California State Economic Development Financing Authority, IDR (Harvel
Plastics Inc. Project), VRDN, AMT, 1.35% due 3/01/2010 (a) ............................ 1,800
California State, GO, MSTR, VRDN (a):
8,555 Series SGA-7, 1.13% due 9/01/2018 (e) ............................................. 8,555
9,600 Series SGA-39, 1.13% due 6/01/2014 (b) ............................................ 9,600
9,340 Series SGA-40, 1.13% due 6/01/2013 (c) ............................................ 9,340
9,370 Series SGA-72, 1.13% due 6/01/2017 (c) ............................................ 9,370
3,185 California State, GO, Refunding, MERLOTS, Series A-47,
1.21% due 2/01/2011 (a)(b) ............................................................ 3,185
California State, GO, Refunding, MSTR, VRDN (a):
7,900 Series SGA-119, 1.15% due 9/01/2028 (c) ........................................... 7,900
3,800 Series SGA-135, 1.15% due 12/01/2030 (d)(g) ....................................... 3,800
11,155 Series SGA-136, 1.15% due 12/01/2030 (g) .......................................... 11,155
4
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
- --------------------------------------------------------------------------------
Face
State Amount Issue Value
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California $ 9,185 California State, MERLOTS, Series A-17, 1.21% due 11/01/2018 (a) ...................... $ 9,185
(continued) California State, RAN:
110,000 1.31% due 6/20/2003 ............................................................... 110,000
117,910 2.50% due 6/27/2003 ............................................................... 118,170
44,000 Index, Series G, 1.30% due 6/20/2003 .............................................. 44,000
California Statewide Communities Development Authority, M/F Housing
Revenue Bonds VRDN (a):
10,000 (Canyon Creek Apartments), AMT, Series C, 1.15% due 6/15/2025 (f) ................. 10,000
4,200 (Kimberly Woods), AMT, Series B, 1.15% due 6/15/2025 (f) .......................... 4,200
13,250 (Knolls at Green Valley), AMT, Series FF, 1.35% due 1/01/2036 ..................... 13,250
5,400 (Lincoln Terrace Apartments), AMT, Series EE, 1.35% due 7/01/2036 ................. 5,400
10,475 (More Than Shelter), Series A, 1.10% due 1/15/2031 ................................ 10,475
3,285 (Olen Jones Senior Apartments), AMT, Series BB, 1.20% due 12/01/2034 .............. 3,285
17,000 California Statewide Communities Development Authority Revenue Bonds
(Kaiser Permanente), VRDN, Series B, 1.35% due 11/01/2030 (a) ......................... 17,000
30,000 California Statewide Communities Development Authority, TRAN, Series A,
3% due 6/30/2003 ...................................................................... 30,095
9,870 California Transit Finance Authority Revenue Bonds, VRDN,
1.20% due 10/01/2027 (a)(e) ........................................................... 9,870
17,459 Clipper Tax-Exempt Trust, COP, VRDN, AMT, Series 98-9, 1.25% due 7/12/2003 (a) ........ 17,459
15,525 Contra Costa, California, Water District Revenue Bonds, MSTR, VRDN,
Series SGA 24, 1.13% due 10/01/2019 (a)(b) ............................................ 15,525
5,800 Dublin, California, M/F Housing Authority Revenue Bonds (Park Sierra), VRDN,
AMT, Series A, 1.25% due 6/01/2028 (a) ................................................ 5,800
18,320 Eagle Tax-Exempt Trust, California State Department of Water Resources,
Power Supply Revenue Bonds, VRDN, Series 2002-6017, Class A,
1.12% due 5/01/2018 (a)(d) ............................................................ 18,320
29,700 Eagle Tax-Exempt Trust, California, VRDN, Series 2000-0501, Class A,
1.14% due 10/01/2028 (a) .............................................................. 29,700
8,900 Elsinore Valley, California, Municipal Water District, COP, VRDN, Series A,
1.10% due 7/01/2029 (a)(c) ............................................................ 8,900
10,360 Fremont, California, High School District, Santa Clara County, GO, TRAN,
3% due 7/01/2003 ...................................................................... 10,396
8,980 Fresno, California, Airport Revenue Bonds, MERLOTS, AMT, Series B2,
1.26% due 7/01/2030 (a)(e) ............................................................ 8,980
4,685 Fresno, California, Water System Revenue Refunding Bonds, MSTR, VRDN,
Series SGA 76, 1.13% due 6/01/2024 (a)(c) ............................................. 4,685
15,783 Glendale, California, Hospital Revenue Refunding Bonds, FLOATS, Series 590,
1.18% due 3/01/2014 (a)(b) ............................................................ 15,783
1,925 Kern County, California, Superintendent of Schools, COP, VRDN, Series A,
1.15% due 12/01/2021 (a) .............................................................. 1,925
4,250 Livermore, California, Redevelopment Agency, M/F Revenue Refunding Bonds
(Livermore Apartments), VRDN, AMT, Series A, 1.25% due 11/01/2040 (a) ................. 4,250
19,430 Loma Linda, California, M/F Housing Revenue Refunding Bonds (Loma Linda
Springs), VRDN, AMT, 1.16% due 12/15/2031 (a) ......................................... 19,430
14,740 Los Angeles, California, Community Redevelopment Agency, M/F Housing
Revenue Bonds (Rowan Lofts Project), VRDN, AMT, Series A,
1.15% due 12/01/2034 (a) .............................................................. 14,740
3,000 Los Angeles, California, Department of Airports, Airport Municipal Trust
Revenue Bonds, FLOATS, Series SG 61, 1.18% due 5/15/2020 (a)(c) ....................... 3,000
5
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
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Face
State Amount Issue Value
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California Los Angeles, California, Department of Water and Power, Electric Plant Revenue
(continued) Refunding Bonds, MSTR, VRDN (a):
$ 4,075 Series SGA 4, 1.13% due 11/15/2019 (c) ............................................ $ 4,075
4,005 Series SGA 6, 1.13% due 11/15/2019 (b) ............................................ 4,005
3,120 Los Angeles, California, Department of Water and Power, Waterworks Revenue
Refunding Bonds, MERLOTS, Series A24, 1.20% due 7/01/2030 (a)(b) ...................... 3,120
5,000 Los Angeles, California, Harbor Department Revenue Bonds, FLOATS,
Series SG-59, 1.18% due 8/01/2026 (a)(b) .............................................. 5,000
Los Angeles, California, Unified School District, GO, MERLOTS (a):
25,000 Series A22, 1.21% due 7/01/2022 (e) ............................................... 25,000
5,000 Series B12, 1.21% due 1/01/2027 (b) ............................................... 5,000
Los Angeles, California, Unified School District, GO, TRAN:
15,000 Series B, 3% due 7/01/2003 ........................................................ 15,049
40,000 Series C, 3.25% due 7/01/2003 ..................................................... 40,155
Los Angeles, California, Wastewater System Revenue Refunding Bonds,
VRDN (a)(c):
12,000 Sub-Series A, 1.25% due 12/01/2031 ................................................ 12,000
16,000 Sub-Series B, 1.25% due 12/01/2031 ................................................ 16,000
4,800 Los Angeles, California, Water and Power Revenue Refunding Bonds, VRDN,
Sub-Series B-6, 1.20% due 7/01/2034 (a) ............................................... 4,800
22,630 Los Angeles County, California, Capital Asset Lease Revenue Bonds, CP,
Series 97, 1% due 5/02/2003 ........................................................... 22,630
70,350 Los Angeles County, California, GO, TRAN, Series A, 3% due 6/30/2003 .................. 70,584
13,100 Los Angeles County, California, Housing Authority, M/F Housing Revenue Bonds
(Park Sierra), VRDN, Series A, 1.20% due 9/01/2030 (a) ................................ 13,100
14,199 Los Angeles County, California, Housing Authority, M/F Housing Revenue
Refunding Bonds (Malibu Meadows II), VRDN, Series C,
1.15% due 4/15/2028 (a)(f) ............................................................ 14,199
Los Angeles County, California, Metropolitan Transportation Authority, Revenue
Refunding Bonds, MSTR, VRDN (a)(e):
40,000 Series SGB 1, 1.12% due 7/01/2025 ................................................. 40,000
40,850 Series SGB 2, 1.12% due 7/01/2021 ................................................. 40,850
Los Angeles County, California, Metropolitan Transportation Authority, Sales
Tax Revenue Bonds, FLOATS (a):
6,000 Series SG-46, 1.14% due 7/01/2017 (d) ............................................. 6,000
20,000 Series SG-55, 1.14% due 7/01/2018 (b) ............................................. 20,000
8,000 Lucia Mar, California, Unified School District, COP, Refunding (Capital Financing
Project), VRDN, 1.15% due 5/01/2031 (a) ............................................... 8,000
7,435 Monrovia, California, Unified School District, GO, MSTR, VRDN, Series SGA 70,
1.13% due 8/01/2022 (a)(b) ............................................................ 7,435
Municipal Securities Trust Certificates, California, GO, VRDN (a)(c):
24,550 Series 2000-97, Class A, 1.13% due 9/01/2016 ...................................... 24,550
20,860 Series 2001-118, Class A, 1.15% due 3/03/2009 ..................................... 20,860
6,150 National City, California, Community Development Commission, Tax Allocation
Revenue Bonds (Redevelopment Project), VRDN, Series B,
1.15% due 8/01/2025 (a) ............................................................... 6,150
Newport Beach, California, Revenue Bonds (Hoag Memorial Presbyterian
Hospital), VRDN (a):
12,500 Series A, 1.15% due 12/01/2029 .................................................... 12,500
20,000 Series C, 1.15% due 12/01/2029 .................................................... 20,000
8,995 Palmdale, California, COP, ROCS, Series II-R-200, 1.12% due 9/01/2032 (a)(b) .......... 8,995
6
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
- --------------------------------------------------------------------------------
Face
State Amount Issue Value
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California $ 13,570 Port Oakland, California, Port Revenue Bonds, MSTR, VRDN, Series SG 112,
(concluded) 1.18% due 11/01/2025 (a)(b) ........................................................... $ 13,570
3,300 Riverside County, California, IDA, IDR (Universal Forest Products), VRDN,
AMT, 1.27% due 8/01/2029 (a) .......................................................... 3,300
12,300 Sacramento, California, Housing Authority, M/F Housing Revenue Bonds
(Greenfair Apartments), VRDN, AMT, Series G, 1.20% due 12/01/2030 (a) ................. 12,300
30,050 Sacramento, California, Municipal Utility District, Electric Revenue Bonds,
CP, 1% due 4/01/2003 .................................................................. 30,050
5,760 Sacramento, California, Municipal Utility District, Electric Revenue Bonds,
MSTR, VRDN, Series SGB 4, 1.12% due 8/15/2021 (a)(d) .................................. 5,760
Sacramento, California, Municipal Utility District, Electric Revenue
Refunding Bonds (a)(e):
12,910 FLOATS, Series 748, 1.30% due 8/15/2028 ........................................... 12,910
9,400 MSTR, VRDN, Series SGA 5, 1.13% due 11/15/2006 .................................... 9,400
10,000 San Bernardino County, California, COP, Refunding (Medical Center Financing
Project), VRDN, 1.11% due 8/01/2026 (a)(b) ............................................ 10,000
6,430 San Bernardino County, California, GO, TRAN, 2.50% due 7/01/2003 ...................... 6,444
7,000 San Diego, California, Sewer Revenue Bonds, FLOATS, Series SG 14,
1.14% due 5/15/2020 (a)(d) ............................................................ 7,000
San Diego, California, Unified Port District, Subordinate Airport Revenue, CP
(Lindbergh Field):
20,160 1.05% due 11/03/2003 .............................................................. 20,160
22,134 1.10% due 11/03/2003 .............................................................. 22,134
5,000 San Diego County and School District Revenue Bonds, TRAN, Series B,
3% due 7/31/2003 ...................................................................... 5,021
San Francisco, California, City and County Airport Commission, International
Airport Revenue Bonds, MSTR, VRDN (a):
7,705 AMT, Series SGA-56, 1.13% due 5/01/2026 (b) ....................................... 7,705
28,005 Series SG-115, 1.27% due 5/01/2020 (c) ............................................ 28,005
16,555 Series SG-116, 1.27% due 5/01/2026 (b) ............................................ 16,555
2,695 San Jose, California, Airport Revenue Refunding Bonds, ROCS, Series II-R-2004,
1.12% due 3/01/2016 (a)(e) ............................................................ 2,695
San Jose, California, M/F Housing Revenue Bonds, VRDN (a):
12,000 (Carlton Homes), AMT, Series A, 1.16% due 10/15/2032 .............................. 12,000
26,400 (Siena Renaissance Square Apartments), 1.15% due 12/01/2029 ....................... 26,400
9,935 Santa Clara, California, Electric Revenue Refunding Bonds, MSTR, VRDN,
Series SGA-75, 1.13% due 7/01/2027 (a)(d) ............................................. 9,935
27,750 Santa Cruz County, California, Board of Education, GO, TRAN,
3% due 7/01/2003 ...................................................................... 27,841
7,000 Santa Cruz County, California, GO, TRAN, 3% due 7/01/2003 ............................. 7,023
8,315 Santa Cruz County, California, Public Financing Authority Revenue Bonds,
MSTR, VRDN, Series SG-23, 1.14% due 9/01/2023 (a)(b) .................................. 8,315
3,300 Shafter, California, IDA, IDR (Building Materials Manufacturing Corporation
Project), VRDN, AMT, 1.10% due 6/01/2029 (a) .......................................... 3,300
Simi Valley, California, M/F Housing Revenue Bonds, VRDN (a):
12,500 (Parker Ranch Project), AMT, Series A, 1.15% due 7/15/2036 ........................ 12,500
12,000 (Shadowridge Apartments), 1.15% due 9/01/2019 ..................................... 12,000
25,000 Southern California Public Power Authority, Transmission Project Revenue
Refunding Bonds (Southern Transmission), VRDN, Series A,
1.10% due 7/01/2021 (a)(e) ............................................................ 25,000
16,000 Ventura County, California, GO, TRAN, 3% due 7/01/2003 ................................ 16,053
17,800 Ventura County, California, Public Financing Authority, Lease Revenue Bonds,
CP, 1.05% due 8/14/2003 ............................................................... 17,800
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7
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONCLUDED) (IN THOUSANDS)
- --------------------------------------------------------------------------------
Face
Amount Issue Value
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico-- Government Development Bank of Puerto Rico, CP:
1.9% $ 15,188 1.10% due 5/05/2003 ............................................................. $ 15,188
6,945 1.05% due 5/20/2003 ............................................................. 6,945
4,900 Municipal Securities Trust Certificates, Puerto Rico, Revenue Bonds, VRDN,
Series 2000-107, Class A, 1.07% due 5/19/2009 (a)(e) ................................ 4,900
4,000 Puerto Rico Commonwealth, FLOATS, Series PMD-8,
1.15% due 7/01/2026 (a)(b) .......................................................... 4,000
3,450 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Bonds, FLOATS, Series PMD-9,
1.15% due 7/01/2026 (a)(e) .......................................................... 3,450
Puerto Rico Electric Power Authority, Power Revenue Bonds, MSTR,
VRDN (a)(b):
6,300 Series SGA-43, 1.07% due 7/01/2022 .............................................. 6,300
8,635 Series SGA 44, 1.07% due 7/01/2023 .............................................. 8,635
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost--$2,658,697*)--99.7% ........................................ 2,658,697
Other Assets Less Liabilities--0.3% ................................................. 8,154
----------
Net Assets--100.0% .................................................................. $2,666,851
==========
- ------------------------------------------------------------------------------------------------------------------------------------
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at March 31,
2003.
(b) MBIA Insured.
(c) FGIC Insured.
(d) AMBAC Insured.
(e) FSA Insured.
(f) FNMA Collateralized.
(g) XL Capital Insured.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
8
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 2003
- --------------------------------------------------------------------------------
Assets:
Investments, at value (identified cost--$2,658,697,172) ............................. $ 2,658,697,172
Cash ................................................................................ 4,948,311
Interest receivable ................................................................. 12,853,355
Prepaid registration fees and other assets .......................................... 27,794
---------------
Total assets ........................................................................ 2,676,526,632
---------------
Liabilities:
Payables:
Securities purchased .............................................................. $ 4,803,794
Beneficial interest redeemed ...................................................... 3,402,847
Investment adviser ................................................................ 913,467
Distributor ....................................................................... 437,401 9,557,509
-----------
Accrued expenses .................................................................... 118,120
---------------
Total liabilities ................................................................... 9,675,629
---------------
Net Assets .......................................................................... $ 2,666,851,003
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized ................................................................... $ 266,744,988
Paid-in capital in excess of par .................................................... 2,400,329,678
Accumulated realized capital losses--net ............................................ (223,663)
---------------
Net Assets--Equivalent to $1.00 per share based on 2,667,449,881 shares of
beneficial interest outstanding ..................................................... $ 2,666,851,003
===============
See Notes to Financial Statements.
9
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2003
- --------------------------------------------------------------------------------
Investment Income:
Interest and amortization of premium and discount earned ........................ $ 37,434,596
Expenses:
Investment advisory fees ........................................................ $ 10,766,051
Distribution fees ............................................................... 3,278,185
Accounting services ............................................................. 379,478
Transfer agent fees ............................................................. 196,262
Professional fees ............................................................... 87,881
Custodian fees .................................................................. 61,707
Printing and shareholder reports ................................................ 43,189
Registration fees ............................................................... 25,810
Trustees' fees and expenses ..................................................... 24,163
Pricing fees .................................................................... 15,339
Other ........................................................................... 35,185
------------
Total expenses .................................................................. 14,913,250
------------
Investment income--net .......................................................... 22,521,346
Realized Gain on Investments--Net ............................................... 37,457
------------
Net Increase in Net Assets Resulting from Operations ............................ $ 22,558,803
============
See Notes to Financial Statements.
10
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Year Ended March 31,
----------------------------------------
Increase (Decrease) in Net Assets: 2003 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Operations:
Investment income--net ........................................................... $ 22,521,346 $ 39,907,969
Realized gain on investments--net ................................................ 37,457 76,139
--------------- ---------------
Net increase in net assets resulting from operations ............................. 22,558,803 39,984,108
--------------- ---------------
Dividends to Shareholders:
Dividends to shareholders from investment income--net ............................ (22,521,346) (39,907,969)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares ................................................. 7,783,871,053 8,569,967,674
Value of shares issued to shareholders in reinvestment of dividends .............. 22,522,100 39,898,428
--------------- ---------------
7,806,393,153 8,609,866,102
Cost of shares redeemed .......................................................... (7,854,465,498) (8,324,230,757)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial
interest transactions ............................................................ (48,072,345) 285,635,345
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets .......................................... (48,034,888) 285,711,484
Beginning of year ................................................................ 2,714,885,891 2,429,174,407
--------------- ---------------
End of year ...................................................................... $ 2,666,851,003 $ 2,714,885,891
=============== ===============
See Notes to Financial Statements.
11
CMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following per share data and ratios have been derived For the Year Ended March 31,
from information provided in the financial statements. -----------------------------------------------------------------------
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance:
Net asset value, beginning of year ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Investment income--net ................................. .01 .02 .03 .03 .03
Realized gain (loss) on investments--net ............... --+ --+ --+ --+ --+
----------- ----------- ----------- ----------- -----------
Total from investment operations ....................... .01 .02 .03 .03 .03
----------- ----------- ----------- ----------- -----------
Less dividends from investment income--net ............. (.01) (.02) (.03) (.03) (.03)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year ........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Investment Return ................................ .85% 1.61% 3.02% 2.59% 2.68%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets:
Expenses ............................................... .57% .57% .58% .58% .58%
=========== =========== =========== =========== ===========
Investment income--net ................................. .85% 1.58% 2.98% 2.56% 2.63%
=========== =========== =========== =========== ===========
Supplemental Data:
Net assets, end of year (in thousands) ................. $ 2,666,851 $ 2,714,886 $ 2,429,174 $ 2,312,154 $ 2,270,864
=========== =========== =========== =========== ===========
+ Amount is less than $.01 per share.
See Notes to Financial Statements.
12
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies:
CMA California Municipal Money Fund (the "Fund") is part of CMA Multi-State
Municipal Series Trust (the "Trust"). The Fund is registered under the
Investment Company Act of 1940 as a non-diversified, open-end management
investment company. The Fund's financial statements are prepared in conformity
with accounting principles generally accepted in the United States of America,
which may require the use of management accruals and estimates. The following is
a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments -- Investments are valued at amortized cost, which
approximates market value. For the purpose of valuation, the maturity of a
variable rate demand instrument is deemed to be the demand notice payment
period. In the case of a floating rate instrument, the remaining maturity is the
next coupon date on which the interest rate is to be adjusted.
(b) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
(c) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Interest income (including amortization of premium and
discount) is recognized on the accrual basis.
(d) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(e) Dividends and distributions to shareholders -- The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax withheld
and backup withholding tax withheld) in additional fund shares at net asset
value. Dividends are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net realized capital
gains, if any, are normally distributed annually after deducting prior years'
loss carryforward. The Fund may distribute capital gains more frequently than
annually in order to maintain the Fund's net asset value at $1.00 per share.
(f) Expenses -- Certain expenses have been allocated to the individual Funds in
the Trust on a pro rata basis based upon the respective aggregate net asset
value of each Fund included in the Trust.
(g) Reclassification -- Accounting principles generally accepted in the United
States of America require that certain components of net assets be adjusted to
reflect permanent differences between financial and tax reporting. Accordingly,
the current year's permanent book/tax difference of $373,554 has been
reclassified between paid-in capital in excess of par and accumulated net
realized capital losses. This reclassification has no effect on net assets or
net asset value per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML
& Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee
based upon the average daily value of the Fund's net assets, at the following
annual rates: .50% of the first $500 million of average daily net assets; .425%
of average
13
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
daily net assets in excess of $500 million but not exceeding $1 billion, and
..375% of average daily net assets in excess of $1 billion.
Pursuant to the Distribution and Shareholder Servicing Plan in compliance with
Rule 12b-1 under the Investment Company Act of 1940, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") receives a distribution fee from the Fund
at the end of each month at the annual rate of .125% of average daily net assets
of the Fund. The distribution fee is to compensate MLPF&S financial advisors and
other directly involved branch office personnel for selling shares of the Fund
and for providing direct personal services to shareholders. The distribution fee
is not compensation for the administrative and operational services rendered to
the Fund by MLPF&S in processing share orders and administering shareholder
accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
For the year ended March 31, 2003, the Fund reimbursed FAM $48,368 for certain
accounting services.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares sold, reinvested and redeemed during the periods
corresponds to the amounts included in the Statements of Changes in Net Assets
for net proceeds from sale of shares, value of shares reinvested and cost of
shares redeemed, respectively, since shares are recorded at $1.00 per share.
4. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years ended March 31,
2003 and March 31, 2002 was as follows:
- --------------------------------------------------------------------------------
3/31/2003 3/31/2002
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt
income ............................. $22,521,346 $39,907,969
----------- -----------
Total distributions .................... $22,521,346 $39,907,969
=========== ===========
- --------------------------------------------------------------------------------
As of March 31, 2003, there were no significant differences between the book and
tax components of net assets.
5. Capital Loss Carryforward:
At March 31, 2003, the Fund had a net capital loss carryforward of approximately
$223,405, of which $41,791 expires in 2006 and $181,614 expires in 2009. This
amount will be available to offset like amounts of any future taxable gains.
14
CMA CALIFORNIA MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
CMA California Municipal Money Fund of
CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of CMA California Municipal Money Fund as of March
31, 2003, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and financial highlights for each of the five years in the period then
ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and 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 obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.
Our procedures included confirmation of securities owned as of March 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 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 CMA
California Municipal Money Fund as of March 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
Princeton, New Jersey
May 8, 2003
CMA CALIFORNIA MUNICIPAL MONEY FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
All of the net investment income distributions paid by CMA California Municipal
Money Fund of CMA Multi-State Municipal Series Trust during the taxable year
ended March 31, 2003 qualify as tax-exempt interest dividends for Federal income
tax purposes.
Please retain this information for your records.
15
CMA CALIFORNIA MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES
- --------------------------------------------------------------------------------
Number of
Portfolios Other
in Fund Director-
Position(s) Length Complex ships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Interested Trustee
====================================================================================================================================
Terry K. Glenn* President 1999 to President and Chairman of Merrill Lynch 118 Funds None
P.O. Box 9011 and present Investment Managers, L.P. ("MLIM")/Fund 162 Portfolios
Princeton, NJ 08543-9011 Trustee and 1997 Asset Management, L.P. ("FAM")--Advised
Age: 62 to present Funds since 1999; Chairman (Americas Region)
of MLIM from 2000 to 2002; Executive Vice
President of MLIM and FAM (which terms as
used herein include their corporate predecessors)
from 1983 to 2002; President of FAM Distributors,
Inc. ("FAMD") from 1986 to 2002 and Director
thereof from 1991 to 2002; Executive Vice
President and Director of Princeton Services,
Inc. ("Princeton Services") from 1993 to 2002;
President of Princeton Administrators, L.P. from
1988 to 2002; Director of Financial Data Services,
Inc. from 1985 to 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Glenn is a director, trustee or member of an advisory board of certain other investment companies for which FAM or MLIM
acts as investment adviser. Mr. Glenn is an "interested person," as described in the Investment Company Act, of the Fund based
on his former positions with FAM, MLIM, FAMD, Princeton Services and Princeton Administrators, L.P. The Trustee's term is
unlimited. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
As Fund President, Mr. Glenn serves at the pleasure of the Board of Trustees.
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios Other
in Fund Director-
Position(s) Length Complex ships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Independent Trustees
====================================================================================================================================
Ronald W. Forbes Trustee 1988 to Professor Emeritus of Finance, School of 45 Funds None
P.O. Box 9095 present Business, State University of New York at 51 Portfolios
Princeton, NJ 08543-9095 Albany since 2000 and Professor thereof
Age: 62 from 1989 to 2000; International Consultant,
Urban Institute from 1995 to 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Cynthia A. Montgomery Trustee 1994 to Professor, Harvard Business School since 1989; 45 Funds Unum
P.O. Box 9095 present Director, Unum Provident Corporation since 51 Portfolios Provident
Princeton, NJ 08543-9095 1990; Director, Newell Rubbermaid, Inc. Corporation;
Age: 50 since 1995. Newell
Rubbermaid,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Charles C. Reilly Trustee 1990 to Self-employed financial consultant since 1990. 45 Funds None
P.O. Box 9095 present 51 Portfolios
Princeton, NJ 08543-9095
Age: 71
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin A. Ryan Trustee 1992 to Founder and Director Emeritus of The Boston 45 Funds None
P.O. Box 9095 present University Center for the Advancement of 51 Portfolios
Princeton, NJ 08543-9095 Ethics and Character; Professor of Education
Age: 70 at Boston University from 1982 to 1999 and
Professor Emeritus since 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
16
CMA CALIFORNIA MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES (CONTINUED)
- --------------------------------------------------------------------------------
Number of
Portfolios Other
in Fund Director-
Position(s) Length Complex ships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Independent Trustees (concluded)
====================================================================================================================================
Roscoe S. Suddarth Trustee 2000 to President, Middle East Institute from 1995 to 45 Funds None
P.O. Box 9095 present 2001; Foreign Service Officer, United States 51 Portfolios
Princeton, NJ 08543-9095 Foreign Service from 1961 to 1995; Career
Age: 67 Minister from 1989 to 1995; Deputy Inspector
General, U.S. Department of State from 1991 to
1994; U.S. Ambassador to the Hashemite Kingdom
of Jordan from 1987 to 1990.
- ------------------------------------------------------------------------------------------------------------------------------------
Richard R. West Trustee 1988 to Dean Emeritus of New York University, 45 Funds Bowne & Co.,
P.O. Box 9095 present Leonard N. Stern School of Business 51 Portfolios Inc.; Vornado
Princeton, NJ 08543-9095 Administration since 1994. Operating
Age: 65 Company;
Vornado
Realty Trust;
Alexander's,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Edward D. Zinbarg Trustee 2000 to Self-employed financial consultant since 45 Funds None
P.O. Box 9095 present 1994. 51 Portfolios
Princeton, NJ 08543-9095
Age: 68
- ------------------------------------------------------------------------------------------------------------------------------------
* The Trustee's term is unlimited. Trustees serve until their resignation, removal or death, or until December 31 of the year in
which they turn 72.
- ------------------------------------------------------------------------------------------------------------------------------------
Position(s) Length
Held of Time
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Officers
====================================================================================================================================
Donald C. Burke Vice 1993 to First Vice President of MLIM and FAM since 1997 and Treasurer thereof
P.O. Box 9011 President present since 1999; Senior Vice President and Treasurer of Princeton Services since
Princeton, NJ 08543-9011 and and 1999; Vice President of FAMD since 1999; Director of MLIM Taxation since 1990.
Age: 42 Treasurer 1999 to
present
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. Jacob Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fixed Income)
P.O. Box 9011 Vice present of MLIM from 1997 to 2000.
Princeton, NJ 08543-9011 President
Age: 51
- ------------------------------------------------------------------------------------------------------------------------------------
John M. Loffredo Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fixed Income)
P.O. Box 9011 Vice present of MLIM from 1998 to 2000.
Princeton, NJ 08543-9011 President
Age: 39
- ------------------------------------------------------------------------------------------------------------------------------------
17
CMA CALIFORNIA MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES (CONCLUDED)
- --------------------------------------------------------------------------------
Position(s) Length
Held of Time
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Officers (concluded)
====================================================================================================================================
Phillip S. Gillespie Secretary 2000 to First Vice President of MLIM since 2001; Director (Legal Advisory) of MLIM
P.O. Box 9011 present from 2000 to 2001; Vice President of MLIM from 1999 to 2000 and Attorney
Princeton, NJ 08543-9011 associated with MLIM since 1998; Assistant General Counsel of Chancellor LGT
Age: 39 Asset Management, Inc. from 1997 to 1998.
- ------------------------------------------------------------------------------------------------------------------------------------
* Officers of the Fund serve at the pleasure of the Board of Trustees.
- ------------------------------------------------------------------------------------------------------------------------------------
Further information about the Fund's Officers and Trustees is available in the
Fund's Statement of Additional Information, which can be obtained without charge
by calling 1-800-MER-FUND.
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
800-221-7210+
+ For inquiries regarding
your CMA account, call
800-CMA-INFO or
800-262-4636.
18
[LOGO] Merrill Lynch Investment Managers
[GRAPHICS OMITTED]
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other Government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund. Past performance
results shown in this report should not be considered a representation of future
performance, which will fluctuate. Statements and other information herein are
as dated and are subject to change.
CMA California Municipal Money Fund
of CMA Multi-State Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
[RECYCLED LOGO] Printed on post-consumer recycled paper #11211--3/03
Item 2 - Did registrant adopt a code of ethics, as of the end of the period
covered by this report, that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party? If not, why not? Briefly describe any amendments or
waivers that occurred during the period. State here if code of
ethics/amendments/waivers are on website and give website address-.
State here if fund will send code of ethics to shareholders without
charge upon request-- N/A (not answered until July 15, 2003 and only
annually for funds)
Item 3 - Did the registrant's board of directors determine that the registrant
either: (i) has at least one audit committee financial expert serving
on its audit committee; or (ii) does not have an audit committee
financial expert serving on its audit committee? If yes, disclose name
of financial expert and whether he/she is "independent," (fund may, but
is not required, to disclose name/independence of more than one
financial expert) If no, explain why not. -N/A (not answered until July
15, 2003 and only annually for funds)
Item 4 - Disclose annually only (not answered until December 15, 2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last two
fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's
annual financial statements or services that are
normally provided by the accountant in connection with
statutory and regulatory filings or engagements for
those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of the
last two fiscal years for assurance and related
services by the principal accountant that are
reasonably related to the performance of the
audit of the registrant's financial statements
and are not reported under paragraph (a) of this
Item. Registrants shall describe the nature of
the services comprising the fees disclosed under
this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last two
fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and
tax planning. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the last
two fiscal years for products and services provided
by the principal accountant, other than the services
reported in paragraphs (a) through (c) of this Item.
Registrants shall describe the nature of the
services comprising the fees disclosed under this
category. N/A.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. N/A.
(e)(2) Disclose the percentage of services described in each of paragraphs
(b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended on
the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the
last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-3 under the
Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d) under the
Exchange Act regarding an exemption from the listing standards for audit
committees.
(Listed issuers must be in compliance with the new listing rules by the
earlier of their first annual shareholders meeting after January 2004, or
October 31, 2004 (annual requirement))
Item 6 - Reserved
Item 7 - For closed-end funds that contain voting securities in their portfolio,
describe the policies and procedures that it uses to determine how to
vote proxies relating to those portfolio securities. N/A (not answered
until July 1, 2003)
Item 8 -- Reserved
Item 9(a) - Disclose the conclusions of the registrant's principal executive
officer or officers and principal financial officer or officers, or
persons performing similar functions, about the effectiveness of the
registrant's disclosure controls and procedures (as defined in Rule
30a-2(c) under the Act (17 CFR 270.30a-2(c))) based on their
evaluation of these controls and procedures as of a date within 90
days of the filing date of the report that includes the disclosure
required by this paragraph. N/A (not answered until July 15, 2003
and only annually for funds)
Item 9(b) -- There were no significant changes in the registrant's internal
controls 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
10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or
amendments/waivers is on website or offered to shareholders upon request
without charge. N/A.
10(b) - Attach certifications pursuant to Section 302 of the Sarbanes-Oxley Act.
Attached hereto.
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.
CMA California Municipal Money Fund
By: /s/ Terry K. Glenn
-----------------------------------
Terry K. Glenn,
President of
CMA California Municipal Money Fund
Date: May 21, 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/ Terry K. Glenn
-----------------------------------
Terry K. Glenn,
President of
CMA California Municipal Money Fund
Date: May 21, 2003
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Financial Officer of
CMA California Municipal Money Fund
Date: May 21, 2003
Attached hereto as an exhibit are the certifications pursuant to Section 906 of
the Sarbanes-Oxley Act.