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 Michigan 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 Michigan
Municipal Money Fund of CMA Multi-State Municipal Series Trust, 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: 03/31/04
Date of reporting period: 04/01/03 - 03/31/04
Item 1 - Report to Stockholders
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
CMA Michigan
Municipal Money Fund
Annual Report
March 31, 2004
[LOGO] Merrill Lynch Investment Managers
CMA Michigan Municipal Money Fund
Important Tax Information (unaudited)
All of the net investment income distributions paid by CMA Michigan Municipal
Money Fund of CMA Multi-State Municipal Series Trust during the taxable year
ended March 31, 2004 qualify as tax-exempt interest dividends for Federal income
tax purposes.
Please retain this information for your records.
2 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
A Letter From the President
Dear Shareholder
Index returns during the most recent six-month and 12-month reporting periods
indicate that fixed income markets -- both taxable and tax-exempt -- continued
to reward those investors who were willing to accept greater risk. The high
yield market, as measured by the Credit Suisse First Boston High Yield Index,
provided a six-month return of +8.65% and a 12-month return of +22.86% as of
March 31, 2004. By comparison, the Lehman Brothers Aggregate Bond Index returned
+2.98% and +5.40% and the Lehman Brothers Municipal Bond Index returned +3.12%
and +5.86% for the six-month and 12-month periods ended March 31, 2004,
respectively.
As of March month-end, the Federal Reserve Board maintained its accommodative
policy stance, pledging "patience" in raising interest rates. As a result,
short-term interest rates remained at historic lows and kept the short end of
the yield curve relatively flat, making it increasingly difficult to find
attractive income opportunities. Market watchers continue to monitor the
economic data and Federal Reserve Board language for indications of interest
rate direction. Having said that, if the economy continues to grow at its recent
pace, many believe it is just a matter of time before interest rates move
upward.
Equity markets, in the meantime, continued to provide attractive returns. For
the six-month and 12-month periods ended March 31, 2004, the Standard & Poor's
500 Index returned +14.08% and +35.12%, respectively. Much of the boost came
from improving economic conditions throughout the past year. Significant fiscal
and monetary stimulus, including the low interest rates and tax cuts, has opened
the door to consumer spending, capital spending, increases in exports and
long-awaited job growth. As expected, these positive developments have led the
way to improvements in corporate earnings -- a positive for stock markets.
The events and efforts of the past year leave us with a much stronger economy
today. With all of this in mind, we believe it is time for investors to consider
what can go right in 2004. We encourage you to revisit your portfolio and your
asset allocation strategy to ensure you are well positioned to take advantage of
the opportunities that lie ahead. Your financial advisor can help you develop a
strategy designed to perform through all types of market and economic cycles.
We thank you for trusting Merrill Lynch Investment Managers with your investment
assets, and we look forward to serving you in the months and years ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Manager
With interest rates holding at historic lows, we looked to purchase
one-year fixed rate paper throughout the period, but used variable rate demand
notes opportunistically for yield enhancement.
How did the Fund perform during the period in light of the existing market
conditions?
For the 12-month period ended March 31, 2004, CMA Michigan Municipal Money Fund
paid shareholders a net annualized yield of .42%.* As of March 31, 2004, the
Fund's seven-day yield was .40%.
Much of the fiscal year was characterized by an accommodative Federal Reserve
Board, which was content to keep interest rates at historically low levels. The
last in a series of interest rate cuts came in June 2003, as the Federal Reserve
Board looked to stimulate economic growth and ward off the potential for
deflation. Although economic growth began to accelerate later in the year,
concerns over weak job growth persisted in the market.
Investors tried to anticipate when the Federal Reserve Board would restore
interest rates to more neutral levels. The constant interest rate analysis
translated into widespread volatility, which created opportunities in the fixed
income markets throughout the past 12 months.
Describe conditions in the State of Michigan during the period.
Michigan's economy continued to face considerable challenges during the 12-month
period. Economic signals were hopeful in the first half of the year. For
example, the state's manufacturing sector was beginning to stabilize and
employment in every other industry showed signs of improvement. Nevertheless,
the state's unemployment rate continued to rise, reaching 7.4% in August 2003,
the highest level in the Midwest.
Michigan's fiscal situation also remained weak. The long national economic
downturn, along with previously implemented income tax cuts, resulted in a sharp
decline in state revenues. In addition, Michigan's once-substantial budget
reserve fund was exhausted after the remaining $145 million was used to balance
the fiscal 2003 budget. The following year's $1.7 billion budget gap was closed
largely through broad-based spending cuts, the use of Federal aid and smaller
revenue enhancements.
On December 30, 2003, Standard & Poor's, a leading bond rating agency, lowered
the state's credit rating one notch from AAA to AA+. The downgrade reflected a
substantial decline in Michigan's general fund balance, which initially was
projected to be $360 million as of September 30, 2003, but ended with a
shortfall of $569 million because of lower-than-expected tax collections.
As we ended the period, the state continued to grapple with high unemployment, a
sluggish housing market and weak household balance sheets. For example, the
percentage of delinquent loans in Michigan was higher than in any other
Midwestern state. In addition, despite low mortgage rates, home sales increased
by less than 5% in 2003 and sales were actually down 10% in the first two months
of 2004. The state is currently projected to end fiscal year 2004 with a general
fund deficit of $888 million.
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
4 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
What changes were made to the portfolio during the period?
As the fiscal year began, we were looking to increase the Fund's position in
variable rate securities for liquidity purposes. These securities tend to have
shorter maturities and, given the inverted yield curve at that time,
shorter-maturity investments were offering higher yields than their
longer-maturity counterparts. We also expected yields on variable rate products
to spike because of redemptions related to tax time. The Fund benefited from
this strategy, as variable rate demand notes offered an average yield of 1.25%
versus 1.10% for one-year fixed rate paper.
As summer approached, variable rate securities became less attractive as
concerns about deflation and the expectation for additional interest rate cuts
caused yields on shorter-maturity securities to drop. After the Federal Reserve
Board's final interest rate cut in June 2003, we expected monetary policy would
be on hold for some time. With that in mind, we were comfortable to increase the
Fund's weighting in fixed rate securities, extending the portfolio's average
maturity from 25 days to approximately 50 days by September 30, 2003.
The final months of 2003 brought evidence of a recovering economy, but inflation
remained modest and the job market continued to be sluggish. Under these
circumstances, we felt that short-term interest rates would remain at current
low levels well into 2004. Thus, despite Michigan's modest issuance, we
continued to look for opportunities to invest in fixed rate paper and, during
the fourth quarter of 2003, we added approximately $26.5 million worth of
investments yielding an average of 1.15%.
Although we continued to search for fixed rate paper in the new year, the
flatness of the short-term tax-exempt yield curve offered little incentive to
extend further out. As the period came to an end, we were looking to increase
our weighting in variable rate paper -- again seeking to take advantage of
higher yields typically available during tax season.
How would you characterize the portfolio's position at the close of the period?
The Fund ended the period in a slightly bearish stance given the lack of
attractive investment opportunities over the past few months. We expect the
Fund's increased weighting in variable rate demand notes as of March 31, 2004
will allow us to benefit from the traditional increase in yields associated with
tax-related selling, at least in the upcoming quarter. Looking further ahead, we
believe the Federal Reserve Board will likely keep monetary policy on hold well
into 2004 to ensure a sustainable economic recovery. With that in mind, we will
continue to look for opportunities to extend the portfolio's average maturity
when prudent.
Darrin J. SanFillippo
Vice President and Portfolio Manager
April 7, 2004
CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004 5
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (in Thousands)
Face
Amount Municipal Bonds Value
===================================================================================================================================
Michigan--97.0%
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000 ABN AMRO Munitops Certificates Trust, Michigan, Revenue Refunding Bonds,
Series 2003-35, VRDN, 1.08% due 10/15/2011 (b)(c) $ 5,000
----------------------------------------------------------------------------------------------------------
990 Battle Creek, Michigan, Housing Corporation, Housing Revenue Bonds, VRDN, Series
1997-A, 1.07% due 2/01/2027 (c) 990
----------------------------------------------------------------------------------------------------------
2,850 Berrien County, Michigan, Economic Development Corporation Revenue Bonds
(Arlington Corp. Project), VRDN, AMT, 1.24% due 9/01/2016 (c) 2,850
----------------------------------------------------------------------------------------------------------
6,170 Clarkston, Michigan, Community Schools, GO, VRDN, ROCS, Series II-R-4519, 1.08%
due 5/01/2022 (c) 6,170
----------------------------------------------------------------------------------------------------------
1,125 Detroit, Michigan, Capital Improvement, GO, Refunding, Series B, 2% due
4/01/2005 (a) 1,136
----------------------------------------------------------------------------------------------------------
Detroit, Michigan, Capital Improvement, GO, Series A (b):
2,000 4.50% due 4/01/2004 (d) 2,000
1,550 5% due 4/01/2005 1,611
----------------------------------------------------------------------------------------------------------
Detroit, Michigan, City School District, VRDN (c):
1,750 GO, PUTTERS, Series 388, 1.07% due 5/01/2011 (f) 1,750
9,285 MERLOTS, Series A-113, 1.09% due 5/01/2029 9,285
----------------------------------------------------------------------------------------------------------
13,080 Detroit, Michigan, Sewage Disposal System Revenue Bonds (Second Lien), Puts,
Series E, 1.05% due 9/02/2004 (c)(f) 13,080
----------------------------------------------------------------------------------------------------------
2,500 Detroit, Michigan, Sewage Disposal System, Revenue Refunding Bonds, VRDN,
MERLOTS, Series B-02, 1.09% due 7/01/2028 (a)(c) 2,500
----------------------------------------------------------------------------------------------------------
Detroit, Michigan, Sewer Disposal Revenue Bonds, VRDN (a)(c):
7,180 ROCS, Series II-R-4014, 1.08% due 7/01/2025 7,180
5,550 Senior Lien, Series A, 1.12% due 7/01/2033 5,550
----------------------------------------------------------------------------------------------------------
12,055 Detroit, Michigan, VRDN, MERLOTS, Series A-115, 1.05% due 7/07/2004 (c) 12,055
----------------------------------------------------------------------------------------------------------
15,840 Eagle Tax-Exempt Trust, Grand Rapids, Michigan, Sanitation Sewer System, VRDN,
Series A, 1.08% due 1/01/2022 (c) 15,840
----------------------------------------------------------------------------------------------------------
5,200 East China School District, Michigan, SAN, 1.75% due 4/15/2004 5,201
----------------------------------------------------------------------------------------------------------
1,280 Ferndale, Michigan, GO, Refunding, 3.50% due 4/01/2005 (f) 1,311
----------------------------------------------------------------------------------------------------------
400 Flint, Michigan, Economic Development Corporation, EDR (Plastics Research),
VRDN, AMT, 1.24% due 9/01/2004 (c) 400
----------------------------------------------------------------------------------------------------------
1,450 Genesee County, Michigan, Economic Development Corporation, Limited Obligation
Revenue Bonds (Riegle Press Inc. Project), VRDN, AMT, 1.17% due 8/01/2015 (c) 1,450
----------------------------------------------------------------------------------------------------------
795 Grand Rapids, Michigan, IDR (Custom Printers), VRDN, AMT, 1.17% due 7/01/2015 (c) 795
----------------------------------------------------------------------------------------------------------
1,565 Grand Rapids, Michigan, IDR, Refunding (Etheridge Company Project), VRDN, AMT,
1.17% due 7/01/2009 (c) 1,565
----------------------------------------------------------------------------------------------------------
1,200 Hillman Community School District, Michigan, GO, SAN, 2% due 3/22/2005 1,210
----------------------------------------------------------------------------------------------------------
2,500 Holland Charter Township, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (Chicago Mission 3A Hockey), VRDN, 1.10% due
10/01/2028 (c) 2,500
----------------------------------------------------------------------------------------------------------
4,000 Huron County, Michigan, Economic Development Corporation, Limited Obligation
Revenue Refunding Bonds (Huron Memorial Hospital Project), VRDN, 1.02% due
10/01/2028 (c) 4,000
----------------------------------------------------------------------------------------------------------
3,200 Jackson County, Michigan, Economic Development Corporation, Limited Obligation
Revenue Bonds (American Tooling Center Project), VRDN, AMT, 1.24% due
6/01/2011 (c) 3,200
Portfolio Abbreviations for CMA Michigan Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
EDR Economic Development Revenue Bonds
FLOATS Floating Rate Securities
GAN Grant Anticipation Notes
GO General Obligation Bonds
HDA Housing Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MERLOTS Municipal Extendible Receipt Liquidity Option Tender Securities
PUTTERS Puttable Tax-Exempt Receipts
ROCS Reset Option Certificates
SAN State Aid Notes
TAN Tax Anticipation Notes
TEAMS Tax-Exempt Adjustable Municipal Securities
VRDN Variable Rate Demand Notes
6 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
===================================================================================================================================
Michigan (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 700 Jackson County, Michigan, Economic Development Corporation, Limited Obligation
Revenue Refunding Bonds (Vista Grande Villa), VRDN, Series A, 1.08% due
11/01/2031 (c) $ 700
----------------------------------------------------------------------------------------------------------
1,050 Jackson, Michigan, Public Schools, GO, SAN, 2% due 5/21/2004 1,052
----------------------------------------------------------------------------------------------------------
5,500 Kalamazoo, Michigan, GO, TAN, 2% due 12/01/2004 5,531
----------------------------------------------------------------------------------------------------------
3,400 Macomb County, Michigan, Hospital Finance Authority, Hospital Revenue Refunding
Bonds (Mount Clemens General Hospital), VRDN, Series A-1, 1.10% due 10/01/2020 (c) 3,400
----------------------------------------------------------------------------------------------------------
700 Marquette County, Michigan, Economic Development Corporation, Limited Obligation
Revenue Bonds (Pioneer Labs Inc. Project), VRDN, AMT, Series A, 1.23% due
6/01/2012 (c) 700
----------------------------------------------------------------------------------------------------------
1,200 Melvindale, Michigan, GO, TAN, 2.25% due 8/15/2004 1,204
----------------------------------------------------------------------------------------------------------
355 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds
(Davenport College of Business Project), VRDN, 1.07% due 3/01/2027 (c) 355
----------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Authority Revenue Bonds:
10,000 Series B-1, 2% due 8/20/2004 10,038
11,670 Series B-2, 2% due 8/23/2004 11,714
----------------------------------------------------------------------------------------------------------
5,810 Michigan State Building Authority, Revenue Refunding Bonds, VRDN, FLOATS,
Series 886, 1.25% due 10/15/2017 (b)(c) 5,810
----------------------------------------------------------------------------------------------------------
4,000 Michigan State, HDA, CP, 1% due 5/12/2004 4,000
----------------------------------------------------------------------------------------------------------
Michigan State, HDA, Limited Obligation Revenue Bonds, VRDN (c):
1,200 (Laurel Valley), TEAMS, 1.15% due 12/01/2007 1,200
2,000 (Woodland Meadows Project), AMT, 1.10% due 3/01/2013 2,000
----------------------------------------------------------------------------------------------------------
6,200 Michigan State, HDA, M/F Limited Obligation Revenue Bonds (Arbors), VRDN, AMT,
Series A, 1.07% due 9/01/2035 (c) 6,200
----------------------------------------------------------------------------------------------------------
Michigan State Hospital Finance Authority, Revenue Refunding Bonds, VRDN (c):
5,000 MERLOTS, Series K, 1.09% due 11/15/2023 (b) 5,000
6,025 Puts (Ascension Health Credit Group), Series B, 5.05% due 11/15/2004 6,169
----------------------------------------------------------------------------------------------------------
1,300 Michigan State Revenue Bonds, GAN, VRDN, Series C, 1% due 9/15/2008 (a)(c) 1,300
----------------------------------------------------------------------------------------------------------
Michigan State Strategic Fund, Limited Obligation Revenue Bonds, VRDN (c):
2,500 (AACOA Extrusions Inc. Project), AMT, 1.22% due 2/01/2008 2,500
1,500 (Artex Label & Graphics), AMT, 1.21% due 12/01/2022 1,500
1,995 (Automatic Handling Inc. Project), AMT, 1.16% due 7/01/2009 1,995
275 (BBPV Project), AMT, Series A-2, 1.47% due 1/01/2014 275
920 (Baron Drawn Steel), AMT, 1.21% due 12/01/2006 920
1,720 (Biewer of Lansing LLC Project), AMT, 1.20% due 5/01/2019 1,720
3,555 (C&M Manufacturing Corporation Inc. Project), AMT, 1.42% due 7/01/2014 3,555
1,070 (Chambers Enterprises II Project), AMT, 1.15% due 11/01/2018 1,070
1,690 (Cherry Central Co-operative Inc. Project), 1.21% due 11/01/2013 1,690
7,400 (Detroit Symphony Orchestra Project), Series B, 1.10% due 6/01/2031 7,400
3,170 (Forest City Technologies), AMT, 1.16% due 9/01/2015 3,170
2,400 (Glastender Inc. Project), AMT, 1.22% due 12/01/2010 2,400
3,075 (Golden Keys Development LLC Project), AMT, 1.21% due 3/01/2018 3,075
430 (Hercules Drawn Steel Project), AMT, 1.20% due 8/01/2006 430
2,000 (Hi-Lex Controls Inc. Project), AMT, 1.22% due 10/01/2021 2,000
780 (Inalfa-Hollandia Inc. Project), AMT, 1.15% due 5/01/2016 780
3,400 (Karmann Technology Development LLC Project), AMT, 1.15% due 12/01/2032 3,400
3,045 (Karona Inc. Project), AMT, 1.16% due 12/01/2015 3,045
3,000 (Kaumagraph Flint Corporation Project), AMT, 1.22% due 11/01/2014 3,000
1,935 (Kerkstra Precast Inc. Project), AMT, 1.17% due 5/01/2025 1,935
1,460 (Mikden Holdings Project), AMT, 1.24% due 6/01/2021 1,460
1,615 (Monarch Hydraulics Inc. Project), AMT, 1.11% due 7/01/2016 1,615
2,000 (Morrell Inc. Project), AMT, 1.15% due 5/01/2022 2,000
1,300 (Norbert Industries Inc. Project), AMT, 1.23% due 4/01/2006 1,300
480 (Northern Pure Ice Co. Project), AMT, 1.23% due 3/01/2015 480
645 (Nuvar Properties LLC Project), AMT, 1.17% due 7/01/2026 645
2,300 (Park Realty LLC), AMT, Series A, 1.17% due 9/01/2026 2,300
1,300 (Pioneer Labs Inc. Project), AMT, 1.09% due 9/01/2012 1,300
6,155 (Pioneer Metal Finishing Project), AMT, 1.10% due 11/01/2008 6,155
CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004 7
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
===================================================================================================================================
Michigan (concluded)
- -----------------------------------------------------------------------------------------------------------------------------------
Michigan State Strategic Fund, Limited Obligation Revenue Bonds, VRDN (c)
(concluded):
$ 3,200 (Richwood Industries Inc. Project), AMT, 1.22% due 9/01/2030 $ 3,200
4,240 (Riverwalk Properties LLC Project), AMT, 1.15% due 8/01/2021 4,240
695 (TEI Investments LLC), AMT, 1.15% due 2/01/2022 695
3,700 (Universal Forest Products Project), AMT, 1.21% due 12/01/2022 3,700
1,600 (Vector Investments LLC Project), AMT, 1.23% due 2/01/2020 1,600
1,970 (Veri-Tek International Corporation Project), AMT, 1.15% due 4/01/2026 1,970
2,000 (WDKK Development LLC Project), AMT, 1.15% due 1/01/2024 2,000
275 (Whitehall Industries), AMT, Series A-6, 1.47% due 1/01/2014 275
----------------------------------------------------------------------------------------------------------
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds,
VRDN (c):
700 (Grandview Plaza Project), AMT, 1.16% due 12/15/2010 700
145 (Park Village Pines Project), 1.07% due 5/01/2006 145
----------------------------------------------------------------------------------------------------------
Michigan State University Revenue Bonds, VRDN, Series A (c):
1,210 0.98% due 8/15/2030 1,210
4,450 1.12% due 8/15/2032 4,450
----------------------------------------------------------------------------------------------------------
7,395 Municipal Securities Trust Certificates, Revenue Refunding Bonds, VRDN, Series
2001-166, Class A, 1.13% due 12/15/2021 (a)(c) 7,395
----------------------------------------------------------------------------------------------------------
7,000 Muskegon, Michigan, Public Schools, GO, SAN, 2% due 5/24/2004 7,009
----------------------------------------------------------------------------------------------------------
Oakland County, Michigan, Economic Development Corporation, Limited Obligation
Revenue Bonds, VRDN, AMT (c):
2,800 (Schain Mold & Engineering), 1.24% due 4/01/2021 2,800
3,300 (V&M Corporation Project), 1.22% due 9/01/2018 3,300
----------------------------------------------------------------------------------------------------------
2,400 Rockford, Michigan, IDR, Limited Obligation (Alloy Exchange Project), VRDN, AMT,
1.22% due 9/01/2019 (c) 2,400
----------------------------------------------------------------------------------------------------------
4,640 Saginaw County, Michigan, Economic Development Corporation Revenue Bonds (Al-Fe
Heat Treating Project), VRDN, AMT, 1.16% due 2/01/2010 (c) 4,640
----------------------------------------------------------------------------------------------------------
11,350 Saline, Michigan, Area Schools, GO, Refunding, VRDN, 1% due 5/01/2030 (c) 11,350
----------------------------------------------------------------------------------------------------------
University of Michigan, University Hospital Revenue Refunding Bonds, VRDN (c):
8,890 Series A, 1.08% due 12/01/2019 8,890
2,000 Series A-2, 1.12% due 12/01/2024 2,000
----------------------------------------------------------------------------------------------------------
1,900 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne
County), VRDN, AMT, Series A, 1.05% due 12/01/2032 (c)(f) 1,900
----------------------------------------------------------------------------------------------------------
3,600 Whitmore Lake, Michigan, Public School District, VRDN, GO, ROCS, Series I-R-4515,
1.08% due 5/01/2023 (c) 3,600
===================================================================================================================================
Puerto Rico--2.4%
- -----------------------------------------------------------------------------------------------------------------------------------
1,000 Puerto Rico Commonwealth Revenue Bonds, FLOATS, VRDN, Series 03-L39J, 1.08% due
7/30/2004 (c) 1,000
----------------------------------------------------------------------------------------------------------
4,947 Puerto Rico Public Buildings Authority, Revenue Refunding Bonds, VRDN, FLOATS,
Series 747D, 1.02% due 7/01/2017 (c)(e) 4,947
----------------------------------------------------------------------------------------------------------
2,000 Puerto Rico Public Finance Corporation Revenue Bonds, VRDN, FLOATS, Series 911,
1.01% due 8/01/2026 (c)(e) 2,000
===================================================================================================================================
Total Investments (Cost--$325,533*)--99.4% 325,533
Other Assets Less Liabilities--0.6% 1,959
--------
Net Assets--100.0% $327,492
========
(a) FSA Insured.
(b) MBIA Insured.
(c) 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,
2004.
(d) Escrowed to maturity.
(e) CIFG Insured
(f) FGIC Insured.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
8 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
Statement of Assets and Liabilities
As of March 31, 2004
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments, at value (identified cost--$325,533,263) .................. $ 325,533,263
Cash ................................................................... 66,162
Receivables:
Securities sold ..................................................... $ 2,005,304
Interest ............................................................ 1,208,287 3,213,591
--------------
Prepaid expenses and other assets ...................................... 5,277
---------------
Total assets ........................................................... 328,818,293
---------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Payables:
Securities purchased ................................................ 1,210,176
Distributor ......................................................... 58,022
Investment adviser .................................................. 23,008
Other affiliates .................................................... 8,249
Beneficial interest redeemed ........................................ 2,596 1,302,051
--------------
Accrued expenses and other liabilities ................................. 24,024
---------------
Total liabilities ...................................................... 1,326,075
---------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ............................................................. $ 327,492,218
===============
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized .......................................... $ 32,756,923
Paid-in capital in excess of par ....................................... 294,775,388
Accumulated realized capital losses--net ............................... (40,093)
---------------
Net Assets--Equivalent to $1.00 per share based on
327,569,232 shares of beneficial interest outstanding ................ $ 327,492,218
===============
See Notes to Financial Statements.
CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004 9
[LOGO] Merrill Lynch Investment Managers
Statement of Operations
For the Year Ended March 31, 2004
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount earned ............... $ 3,841,096
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ............................................... $ 1,708,179
Distribution fees ...................................................... 403,780
Accounting services .................................................... 79,719
Professional fees ...................................................... 55,462
Transfer agent fees .................................................... 43,267
Registration fees ...................................................... 25,802
Printing and shareholder reports ....................................... 22,088
Custodian fees ......................................................... 16,368
Pricing fees ........................................................... 12,365
Trustees' fees and expenses ............................................ 3,369
Other .................................................................. 14,056
--------------
Total expenses ......................................................... 2,384,455
---------------
Investment income--net ................................................. 1,456,641
---------------
===================================================================================================================================
Realized Gain on Investments--Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain on investments--net ...................................... 9,035
---------------
Net Increase in Net Assets Resulting from Operations ................... $ 1,465,676
===============
See Notes to Financial Statements.
10 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
Statements of Changes in Net Assets
For the Year Ended
March 31,
---------------------------------
Increase (Decrease) in Net Assets: 2004 2003
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net ................................................. $ 1,456,641 $ 2,938,918
Realized gain on investments--net ...................................... 9,035 1,724
---------------------------------
Net increase in net assets resulting from operations ................... 1,465,676 2,940,642
---------------------------------
===================================================================================================================================
Dividends to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from investment income--net .................. (1,456,641) (2,938,918)
---------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net proceeds from sale of shares ....................................... 1,549,290,544 1,412,080,997
Value of shares issued to shareholders in reinvestment of dividends .... 1,456,757 2,938,776
---------------------------------
1,550,747,301 1,415,019,773
Cost of shares redeemed ................................................ (1,572,512,979) (1,426,330,732)
---------------------------------
Net decrease in net assets derived from beneficial interest transactions (21,765,678) (11,310,959)
---------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ........................................... (21,756,643) (11,309,235)
Beginning of year ...................................................... 349,248,861 360,558,096
---------------------------------
End of year ............................................................ $ 327,492,218 $ 349,248,861
=================================
See Notes to Financial Statements.
CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004 11
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Financial Highlights
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended March 31,
--------------------------------------------------------------
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001 2000
==================================================================================================================================
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
Realized gain (loss) on investments--net . --+ --+ -- --+ --++
--------------------------------------------------------------
Total from investment operations ......... --+ .01 .02 .03 .03
--------------------------------------------------------------
Less dividends from investment income--net --++ (.01) (.02) (.03) (.03)
--------------------------------------------------------------
Net asset value, end of year ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==============================================================
Total investment return .................. .42% .85% 1.74% 3.47% 2.86%
==============================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. .70% .69% .70% .70% .70%
==============================================================
Investment income--net ................... .43% .84% 1.77% 3.40% 2.81%
==============================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ... $ 327,492 $ 349,249 $ 360,558 $ 391,944 $ 360,334
==============================================================
+ Amount is less than $.01 per share.
++ Amount is less than $(.01) per share.
See Notes to Financial Statements.
12 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
Notes to Financial Statements
1. Significant Accounting Policies:
CMA Michigan 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 amended, 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 fee -- Prepaid registration fees are charged to expense
as the related shares are issued.
(e) Dividends and distributions to shareholders -- The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax and
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.
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 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.
CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004 13
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Notes to Financial Statements (concluded)
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, 2004, the Fund reimbursed FAM $6,760 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 years 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,
2004 and March 31, 2003 was as follows:
- --------------------------------------------------------------------------------
3/31/2004 3/31/2003
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income ................... $1,456,641 $2,938,918
------------------------------
Total distributions .................... $1,456,641 $2,938,918
==============================
As of March 31, 2004, there were no significant differences between the book and
tax components of net assets.
5. Capital Loss Carryforward:
On March 31, 2004, the Fund had a net capital loss carry-forward of $40,093, of
which $23,497 expires in 2005, $6,574 expires in 2006, $5,068 expires in 2008
and $4,954 expires in 2009. This amount will be available to offset like amounts
of any future taxable gains.
14 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
Independent Auditors' Report
To the Shareholders and Board of Trustees of
CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of CMA Michigan Municipal Money Fund of CMA
Multi-State Municipal Series Trust (the "Trust") as of March 31, 2004, 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
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 Trust'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 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, 2004, 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
Michigan Municipal Money Fund of CMA Multi-State Municipal Series Trust as of
March 31, 2004, 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 14, 2004
CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004 15
[LOGO] Merrill Lynch Investment Managers
Officers and Trustees (unaudited)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name Address & Age Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
====================================================================================================================================
Interested Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Terry K. P.O. Box 9011 President 1999 to President of the Merrill Lynch Investment Managers, 124 Funds None
Glenn* Princeton, NJ and present L.P. ("MLIM")/Fund Asset Management, L. P. 160 Portfolios
08543-9011 Trustee and ("FAM")--Advised Funds since 1999; Chairman
Age: 63 1997 to (Americas Region) of MLIM from 2000 to 2002;
present 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 1989 to 2002;
Director of Financial Data Services, Inc. since 1985.
------------------------------------------------------------------------------------------------------------------------
* Mr. Glenn is a director, trustee or member of an advisory board of certain other investment companies for which MLIM
or FAM 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 MLIM, FAM, 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.
====================================================================================================================================
Independent Trustees*
- ------------------------------------------------------------------------------------------------------------------------------------
Ronald W. P.O. Box 9095 Trustee 1988 to Professor Emeritus of Finance, School of Business, 51 Funds None
Forbes Princeton, NJ present State University of New York at Albany since 2000 50 Portfolios
08543-9095 and Professor thereof from 1989 to 2000;
Age: 63 International Consultant at the Urban Institute
from 1995 to 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Cynthia A. P.O. Box 9095 Trustee 1994 to Professor, Harvard Business School since 1989. 51 Funds Newell
Montgomery Princeton, NJ present 50 Portfolios Rubbermaid,
08543-9095 Inc.
Age: 51
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin A. P.O. Box 9095 Trustee 1992 to Director Emeritus of The Boston University Center 51 Funds None
Ryan Princeton, NJ present for the Advancement of Ethics and Character from 50 Portfolios
08543-9095 1989 to 1999; Professor of Education at Boston
Age: 71 University from 1982 to 1999 and Professor Emeritus
thereof since 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Roscoe S. P.O. Box 9095 Trustee 2000 to President of Middle East Institute from 1995 to 51 Funds None
Suddarth Princeton, NJ present 2001; Foreign Service Officer of United States 50 Portfolios
08543-9095 Foreign Service from 1961 to 1995 and Career
Age: 68 Minister thereof from 1989 to 1995; Deputy
Inspector General of U.S. Department of State from
1991 to 1994; U.S. Ambassador to the Hashemite
Kingdom of Jordan from 1987 to 1990.
- ------------------------------------------------------------------------------------------------------------------------------------
Richard R. P.O. Box 9095 Trustee 1988 to Professor of Finance, New York University, 51 Funds Bowne & Co.,
West Princeton, NJ present Leonard N. Stern School of Business Administration 50 Portfolios Inc.; Vornado
08543-9095 from 1982 to 1994 and Dean Emeritus thereof Operating
Age: 66 since 1994. Company;
Vornado
Realty Trust
and
Alexander's,
Inc.
16 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
Officers and Trustees (unaudited) (concluded)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name Address & Age Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
====================================================================================================================================
Independent Trustees* (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
Edward D. P.O. Box 9095 Trustee 2000 to Self-employed financial consultant since 1994; 51 Funds None
Zinbarg Princeton, NJ present Executive Vice President of The Prudential 50 Portfolios
08543-9095 Insurance Company of America from 1988 to
Age: 69 1994; Former Director of Prudential Reinsurance
Company and former Trustee of The Prudential
Foundation.
------------------------------------------------------------------------------------------------------------------------
* 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 of
Held with Time
Name Address & Age Fund Served* Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. P.O. Box 9011 Vice 1993 to First Vice President of MLIM and FAM since 1997 and Treasurer thereof since 1999;
Burke Princeton, NJ President present Senior Vice President and Treasurer of Princeton Services since 1999; Vice
08543-9011 and and President of FAMD since 1999; Director of MLIM Taxation since 1990.
Age: 43 Treasurer 1999 to
present
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. P.O. Box 9011 Senior Vice 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fund Management) of
Jacob Princeton, NJ President present MLIM from 1997 to 2000.
08543-9011
Age: 53
- ------------------------------------------------------------------------------------------------------------------------------------
John M. P.O. Box 9011 Senior Vice 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fund Management) of
Loffredo Princeton, NJ President present MLIM from 1998 to 2000.
08543-9011
Age: 40
- ------------------------------------------------------------------------------------------------------------------------------------
Darrin J. P.O. Box 9011 Vice 1996 to Vice President of MLIM since 1998.
SanFillippo Princeton, NJ President present
08543-9011
Age: 39
- ------------------------------------------------------------------------------------------------------------------------------------
Phillip S. P.O. Box 9011 Secretary 2000 to First Vice President of MLIM since 2001; Director (Legal Advisory) from 2000 to
Gillespie Princeton, NJ present 2001; Vice President from 1999 to 2000; Attorney associated with MLIM since 1998.
08543-9011
Age: 40
-----------------------------------------------------------------------------------------------------------------------
* Officers of the Fund serve at the pleasure of the Board of Trustees.
- ------------------------------------------------------------------------------------------------------------------------------------
Further information about the Fund's 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.
- --------------------------------------------------------------------------------
Charles C. Reilly, Trustee of CMA Michigan Municipal Money Fund, has recently
retired. The Fund's Board of Trustees wishes Mr. Reilly well in his retirement.
- --------------------------------------------------------------------------------
CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004 17
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Electronic Delivery
The Fund offers electronic delivery of communications to its shareholders. In
order to receive this service, you must register your account and provide us
with e-mail information. To sign up for this service, simply access this website
http://www.icsdelivery.com/live and follow the instructions. When you visit this
site, you will obtain a personal identification number (PIN). You will need this
PIN should you wish to update your e-mail address, choose to discontinue this
service and/or make any other changes to the service. This service is not
available for certain retirement accounts at this time.
18 CMA MICHIGAN MUNICIPAL MONEY FUND MARCH 31, 2004
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
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.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863); (2)
on www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's
website at http://www.sec.gov.
CMA Michigan Municipal Money Fund
of CMA Multi-State Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
#16056 -- 3/04
Item 2 - Code of Ethics - The registrant has adopted 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
and principal accounting officer, or persons performing similar
functions. A copy of the code of ethics is available without charge
upon request by calling toll-free 1-800-MER-FUND (1-800-637-3863).
Item 3 - Audit Committee Financial Expert - The registrant's board of directors
has determined that (i) the registrant has the following audit
committee financial experts serving on its audit committee and (ii)
each audit committee financial expert is independent: (1) Ronald W.
Forbes, (2) Richard R. West, and (3) Edward D. Zinbarg.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees - Fiscal Year Ending March 31, 2004 - $31,200
Fiscal Year Ending March 31, 2003 - $34,164
(b) Audit-Related Fees - Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2004 - $5,200
Fiscal Year Ending March 31, 2003 - $4,800
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
(e)(1) The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the
registrant's affiliated service providers that relate directly to the
operations and the financial reporting of the registrant. Certain of
these non-audit services that the Committee believes are a) consistent
with the SEC's auditor independence rules and b) routine and recurring
services that will not impair the independence of the independent
accountants may be approved by the Committee without consideration on a
specific case-by-case basis ("general pre-approval"). However, such
services will only be deemed pre-approved provided that any individual
project does not exceed $5,000 attributable to the registrant or
$50,000 for the project as a whole. Any proposed services exceeding the
pre-approved cost levels will require specific pre-approval by the
Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ending March 31, 2004 - $16,708,160
Fiscal Year Ending March 31, 2003 - $17,378,427
(h) The registrant's audit committee has considered and determined that
the provision of non-audit services that were rendered to the
registrant's 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.
Regulation S-X Rule 2-01(c)(7)(ii) - $541,640, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 9 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 10 - Controls and Procedures
10(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to
the filing date of this report.
10(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the second fiscal half-year of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 11 - Exhibits attached hereto
11(a)(1) - Code of Ethics - See Item 2
11(a)(2) - Certifications - Attached hereto
11(a)(3) - Not Applicable
11(b) - Certifications - 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 Michigan Municipal Money Fund of CMA Multi-State Municipal Series
Trust
By: /s/ Terry K. Glenn
----------------------------
Terry K. Glenn,
President of
CMA Michigan Municipal Money Fund of CMA Multi-State Municipal Series
Trust
Date: May 21, 2004
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 Michigan Municipal Money Fund of CMA Multi-State Municipal Series
Trust
Date: May 21, 2004
By: /s/ Donald C. Burke
----------------------------
Donald C. Burke,
Chief Financial Officer of
CMA Michigan Municipal Money Fund of CMA Multi-State Municipal Series
Trust
Date: May 21, 2004