-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AWi4xPdKcdyho+K1jcNacE+tBrkj6JUgMJxnwi8CgUPnqy6vnpTARbOTRaOcBT/z E+6kzeJtLEqejLqHWEevyg== 0000900092-03-000067.txt : 20030530 0000900092-03-000067.hdr.sgml : 20030530 20030530160234 ACCESSION NUMBER: 0000900092-03-000067 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030530 EFFECTIVENESS DATE: 20030530 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CMA PENNSYLVANIA MUN MONEY FD OF CMA MULTI STATE MUN SERS TR CENTRAL INDEX KEY: 0000863036 IRS NUMBER: 226500470 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05011-03 FILM NUMBER: 03726025 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08546 BUSINESS PHONE: 6092822800 MAIL ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08536 FORMER COMPANY: FORMER CONFORMED NAME: CMA PENNSYLVANIA TAX EXEMPT FUND OF CMA MULTI STATE MUNICIPA DATE OF NAME CHANGE: 19910729 N-CSR 1 ml7007.txt CMA PENNSYLVANIA MUNICIPAL 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 Pennsylvania 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 Pennsylvania 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 (BULL LOGO) Merrill Lynch Investment Managers Annual Report March 31, 2003 CMA Pennsylvania Municipal Money Fund 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. CMA Pennsylvania Municipal Money Fund of CMA Multi-State Municipal Series Trust Box 9011 Princeton, NJ 08543-9011 Printed on post-consumer recycled paper To Our Shareholders: For the year ended March 31, 2003, CMA Pennsylvania Municipal Money Fund paid shareholders a net annualized yield of .83%.* As of March 31, 2003, the Fund's 7-day yield was .64%. Economic Environment During the year ended March 31, 2003, Pennsylvania's economy continued to struggle as the result of a global recession. Moreover, slower economic activity reduced corporate and personal spending, while a severe decline in the stock market virtually eliminated capital gains. Consequently, personal bankruptcies continued to accelerate through the fall and although Pennsylvania's incidence of bankruptcy is below the national average, the gap did narrow over the past year. This deterioration in credit quality is particularly alarming given that Pennsylvania's unemployment rate is currently at a cyclical high. Job losses have been broad based with only construction and government registering steady gains. For example, housing construction enjoyed an extended season this year as strong permit issuance continued late into the fall. Manufacturing, which continues to bear the brunt of the slower economy, has affected various parts of the commonwealth to varying degrees. In more diverse metro areas such as Pittsburgh and Philadelphia, the recession has had a smaller impact on employment than has been the case historically. Consequently, employment was more adversely affected in the more rural areas because their economies are still heavily reliant on manufacturing. *Based on a constant investment throughout the period, with dividends compounded daily, and reflecting a net return to the investor after all expenses. The commonwealth's finances remained strained during the past year because of the sluggish global economy. Fiscal 2003 year-to-date revenues through December 2002 indicated a $96 million shortfall from budget, and the commonwealth is currently projecting a $433 million gap for the fiscal year. Strategies to fill the gap include the implementation of a spending freeze and use of the commonwealth's Rainy Day Fund. The Rainy Day Fund, which totaled over $1 billion a few years ago, will end 2003 with no remaining funds. For fiscal year 2004, the governor's office is projecting a budget deficit ranging from $500 million to as much as $2 billion. The commonwealth has not disclosed if it is contemplating the securitization of tobacco revenues to reduce the expected deficit. Despite these economic trends, the commonwealth's practice of keeping budget growth to a minimum and revenue assumption realistic in the 1990s has helped prepare for this economic slowdown. However, if the economic slowdown is protracted, Pennsylvania will be faced with difficult choices in balancing budgetary needs compared to available resources. Per-capita wealth levels and the commonwealth's state tax-supported debt ratios remain close to national averages, with the latter showing an improving trend in recent years relative to other states. For the near future, cautious fiscal management practices are expected to be maintained and should accommodate a trend of slower economic growth. Going forward, Pennsylvania will likely see further job losses in the near term. While manufacturing could mount a rebound in 2003 if business revives, the bulk of Pennsylvania's job growth would most likely come from its service producing industries. The governor has signaled the possibility of a tax increase and a $20 million stimulus package that is directed to benefit the Pennsylvania business sector, which has struggled with the lack of investment nationally. In the long term, the commonwealth's poor demographic trends and a relatively low concentration of high-growth industries outside of the main two metropolitan areas will limit the potential for growth. Investment Strategy At the beginning of the 12-month period ended March 31, 2003, we sought to maintain the Fund's relatively bearish stance. This was because of our expectation of a rise in interest rates as reflected by the Federal Reserve Board's change in bias from that of weakness to neutral at the March 19, 2002 Federal Open Market Committee meeting. In addition, this position allowed the Fund to take advantage of the anticipated rise in yields on variable rate product caused by outflows during tax time. As tax season began, a smaller amount of income tax related redemptions caused variable rate product to underperform compared to previously purchased fixed rate securities. Consequently, although we allowed the Fund to trend to a more bearish position, we continued to benefit from the more aggressive stance attained early in the first quarter of 2002. As the period progressed, economic data began to reveal that growth for the second quarter of 2002 was slowing from that of the first quarter. Furthermore, U.S. equity markets were suffering from a confidence crisis caused by accounting scandals and corporate malfeasance. For example, the Dow Jones Industrial Average, which began the period at 10,362, declined to 7,992 by the end of March 2003. As a result of these factors, we looked to move to a more neutral position given our opinion that the Federal Reserve Board would not tighten monetary policy in the coming months. A majority of our extension took place in April and May 2002 as we tried to lock in higher yields than were expected going forward. This strategy benefited the Fund as yields on tax-exempt securities maturing in one year declined almost 70 basis points (.70%) by the end of June 2002. As summer ended, continued weakness in capital expenditures and another possible military confrontation with Iraq caused the U.S. economy to weaken. In fact, at its August 13, 2002 Federal Open Market Committee meeting, the Federal Reserve Board changed its outlook from neutral back to that of weakness. As the second half of the period began, we looked to maintain the Fund's current stance because it was our opinion that the significant short-term issuance from the State of California would cause general market variable rate product to outperform fixed rate securities through year end. Our strategy benefited the Fund as yields on variable rate product averaged 1.65%, while yields on fixed rate product averaged 1.45% through mid-November. Nevertheless, from mid-November 2002 to early March 2003, yields on variable rate securities declined significantly because of the tremendous demand for short-term tax-exempt instruments. This was caused by both the Federal Reserve Board lowering the Federal Funds rate by 50 basis points at the November 6, 2002 Federal Open Market Committee meeting and continued cash inflows through February 2003. Since we anticipated that the Federal Reserve Board would keep monetary policy on hold for the near term, we continued to look for attractive opportunities to moderately extend our average portfolio maturity during this time. However, this proved to be difficult given a flat short-term tax-exempt yield curve and lack of state-specific fixed rate issuance. Our strategy allowed the Fund to provide a total return that was above average relative to its peer group for the one-year period ended March 31, 2003 according to iMoneyNet, Inc. As the period ended, we planned to maintain our current position, given the significant rally in the note market and the expected spike in yields on variable rate product as tax time approaches. In Conclusion We thank you for your support of CMA Pennsylvania Municipal Money Fund, and we look forward to serving your investment needs in the months and years ahead. Sincerely, (Terry K. Glenn) Terry K. Glenn President and Trustee (Kenneth A. Jacob) Kenneth A. Jacob Senior Vice President (John M. Loffredo) John M. Loffredo Senior Vice President (Darrin J. SanFillippo) Darrin J. SanFillippo Portfolio Manager April 14, 2003 CMA PENNSYLVANIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (IN THOUSANDS)
Face State Amount Issue Value Pennsylvania-- ABN Amro Munitops Certificates Trust, VRDN (d): 100.4% $ 3,760 GO, Series 2001-18, 1.21% due 10/01/2009 (c) $ 3,760 21,879 Series 1999-16, 1.20% due 3/07/2007 (b) 21,879 14,455 Allegheny County, Pennsylvania, GO, Series C-51, 2.05% due 5/01/2003 14,455 Allegheny County, Pennsylvania, Hospital Development Authority Revenue Bonds (Presbyterian University Hospital), ACES, VRDN (d): 3,775 Series B-1, 1.20% due 3/01/2018 3,775 930 Series B-2, 1.20% due 3/01/2018 930 4,250 Series B-3, 1.20% due 3/01/2018 4,250 10,950 Allegheny County, Pennsylvania, IDA, Health and Housing Facilities Revenue Refunding Bonds (Longwood at Oakmont Inc.), VRDN, Senior Series B, 1.25% due 7/01/2027 (d) 10,950 Allegheny County, Pennsylvania, IDA, Revenue Bonds: 3,125 (The Bradley Center), VRDN, Series A, 1.20% due 11/01/2014 (d) 3,125 6,000 (Western Pennsylvania School for the Blind), 1.60% due 7/01/2003 6,000 Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds, VRDN (d): 8,400 (Commercial Development-Parkway Center Project), Series A, 1.17% due 5/01/2009 8,400 6,500 MERLOTS, Series A-48, 1.26% due 9/01/2011 (a) 6,500 1,790 Beaver County, Pennsylvania, IDA, IDR (Standard Steel Specialty), VRDN, 1.29% due 12/03/2007 (d) 1,790 4,000 Beaver County, Pennsylvania, IDA, PCR, Refunding (Atlantic Richfield Project), VRDN, 1.15% due 12/01/2020 (d) 4,000 4,725 Bedford County, Pennsylvania, IDA, Revenue Bonds (Defiance Metal Products), VRDN, 1.29% due 2/01/2011 (d) 4,725 1,130 Berks County, Pennsylvania, IDA, IDR (Valley Forge Flag Company, Inc. Project), VRDN, AMT, Series A, 1.37% due 9/01/2006 (d) 1,130 1,185 Berks County, Pennsylvania, IDA, Manufacturing Facilities Revenue Bonds (Berks Products Corporation), VRDN, AMT, 1.32% due 8/01/2006 (d) 1,185 2,995 Berks County, Pennsylvania, IDA, Revenue Bonds (World Electronics Sales), VRDN, AMT, 1.37% due 8/01/2016 (d) 2,995 5,900 Blair County, Pennsylvania, IDA, Revenue Bonds (NPC Inc. Project), VRDN, AMT, 1.30% due 9/01/2017 (d) 5,900 3,135 Bradford County, Pennsylvania, IDA, EDR (Towanda Printing Company), VRDN, AMT, 1.30% due 9/01/2016 (d) 3,135 2,410 Bradford County, Pennsylvania, IDA, Revenue Bonds (State Aggregates Inc. Project), VRDN, AMT, 1.37% due 2/01/2015 (d) 2,410 Bucks County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (d): 4,515 (Bracalentes Manufacturing Company Inc. Project), 1.37% due 6/01/2016 4,515 4,500 (Harsco Corporation Project), 1.37% due 8/01/2011 4,500 3,740 (L&P Properties LP Project), Series A, 1.42% due 6/01/2014 3,740 6,500 Bucks County, Pennsylvania, TRAN, 2% due 12/31/2003 6,541 995 Butler County, Pennsylvania, GO, 6% due 7/15/2003 (c) 1,008
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund ACESSM Adjustable Convertible Extendible Securities AMT Alternative Minimum Tax (subject to) CP Commercial Paper EDR Economic Development Revenue Bonds FLOATS Floating Rate Securities GO General Obligation Bonds HFA Housing Finance Authority 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 S/F Single-Family TRAN Tax Revenue Anticipation Notes VRDN Variable Rate Demand Notes CMA PENNSYLVANIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Pennsylvania Butler County, Pennsylvania, IDA, Revenue Bonds (Concordia Lutheran Ministers): (continued) $ 3,750 Series A, 1.30% due 4/01/2004 $ 3,750 4,320 Series B, 1.70% due 8/01/2003 4,320 4,535 Series C, 1.20% due 10/01/2003 4,535 2,245 Carbondale, Pennsylvania, IDA, IDR (JM Wells Company LP Project), VRDN, AMT, 1.35% due 9/01/2015 (d) 2,245 5,435 Chester County, Pennsylvania, IDA, Revenue Bonds (West Vincent Association), VRDN, AMT, Series B, 1.37% due 12/01/2020 (d) 5,435 1,325 Crawford County, Pennsylvania, IDA (Heatrix Inc. Project), VRDN, AMT, Series A, 1.29% due 11/01/2017 (d) 1,325 17,590 Cumberland County, Pennsylvania, Municipal Authority, Revenue Refunding Bonds (Messiah Village Project), VRDN, 1.20% due 7/01/2027 (d) 17,590 6,995 Dauphin County, Pennsylvania, General Authority, Revenue Refunding Bonds (School District Pooled Financing Program II), VRDN, 1.17% due 9/01/2032 (a)(d) 6,995 3,360 Dauphin County, Pennsylvania, IDA, Revenue Bonds (Interconnection System Project), VRDN, AMT, 1.25% due 1/01/2014 (d) 3,360 2,000 Delaware County, Pennsylvania, Authority Revenue Bonds (Widener University Inc.), VRDN, 1.20% due 7/01/2014 (d) 2,000 Delaware County, Pennsylvania, IDA, CP: 10,000 (Exelon Generating), Series 2001-A, 1.10% due 10/09/2003 10,000 2,000 (Pennsylvania Electric Company), Series 1998-A, 1.15% due 4/02/2003 2,000 2,055 Delaware County, Pennsylvania, IDA, IDR (Tura Machine Company Project), VRDN, AMT, 1.35% due 3/01/2008 (d) 2,055 1,200 Delaware County, Pennsylvania, IDA, PCR, Refunding (BP Exploration and Oil), VRDN, 1.15% due 10/01/2019 (d) 1,200 4,300 Eagle Tax-Exempt Trust, Pennsylvania, GO, VRDN, Series 94, Class 3803, 1.23% due 5/01/2008 (d) 4,300 5,940 Eagle Tax-Exempt Trust, Pennsylvania, VRDN, Series 96-C, Class 3801, 1.23% due 5/01/2014 (d) 5,940 10,000 East Hempfield Township, Pennsylvania, IDA, Revenue Bonds (Mennonite Home Project), VRDN, 1.20% due 6/01/2025 (d) 10,000 6,100 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, Series A, 1.20% due 3/01/2024 (d) 6,100 1,910 Erie County, Pennsylvania, Industrial Development (Reed Manufacturing Corp. Project), AMT, 1.29% due 1/15/2004 1,910 1,990 Erie, Pennsylvania, Higher Education Building Authority, University Revenue Bonds (Gannon University Project), Series F, 1.40% due 1/15/2004 1,990 9,000 Erie, Pennsylvania, School District, GO, TRAN, 2.50% due 6/30/2003 9,022 2,470 Greene County, Pennsylvania, IDA, Revenue Bonds (Manufacturing Facilities-- Kyowa America), VRDN, AMT, Series D, 1.30% due 7/01/2014 (d) 2,470 5,535 Grove City, Pennsylvania, Area Hospital Authority, Health Care Facility Revenue Bonds (John XXIII Home Project), VRDN, 1.20% due 2/01/2030 (d) 5,535 5,345 Indiana County, Pennsylvania, IDA, PCR, Refunding (Conemaugh Project), VRDN, AMT, Series A, 1.25% due 6/01/2027 (d) 5,345 Jackson Township, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (d): 1,340 (I Auman Machine Company Inc. Project), 1.37% due 6/01/2008 1,340 1,550 (Pennsylvania Precision Cast Parts), 1.37% due 4/01/2009 1,550 6,215 (V&S Lebanon Galvanizing Project), 1.40% due 4/01/2021 6,215 6,390 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 1.23% due 9/15/2020 (d) 6,390 1,400 Lackawanna County, Pennsylvania, IDA, IDR (Herff Jones Inc. Project), VRDN, AMT, 1.29% due 6/01/2026 (d) 1,400 7,395 Lancaster County, Pennsylvania, Hospital Authority, Health Center Revenue Refunding Bonds (Brethren Village), VRDN, 1.20% due 6/15/2020 (d) 7,395 1,600 Lancaster, Pennsylvania, IDA, IDR (Bucks County Project), VRDN, AMT, 1.32% due 2/01/2010 (d) 1,600
CMA PENNSYLVANIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Pennsylvania $ 2,900 Lehigh County, Pennsylvania, IDA, Revenue Bonds (New Columbia Joist (continued) Company), VRDN, AMT, Series B, 1.32% due 11/01/2022 (d) $ 2,900 4,530 Luzerne County, Pennsylvania, IDA, Revenue Bonds (Nardone Brothers Baking Project), VRDN, AMT, 1.32% due 3/01/2019 (d) 4,530 3,535 Mercer County, Pennsylvania, IDA, EDR (Solar Atmospheres of Western Pennsylvania), VRDN, 1.15% due 10/01/2010 (d) 3,535 3,100 Monroe County, Pennsylvania, IDA, Revenue Refunding Bonds (UTD Steel Enterprises Project), VRDN, AMT, Series A, 1.30% due 9/01/2013 (d) 3,100 9,530 Montgomery County, Pennsylvania, IDA, PCR (Exelon Generating), CP, Series A, 1.10% due 5/08/2003 9,530 3,760 Montgomery County, Pennsylvania, IDA, Revenue Bonds (Edmund Optical Manufacturing LLC Project), VRDN, AMT, 1.30% due 4/01/2016 (d) 3,760 2,300 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds (Laneko Engineering), VRDN, AMT, Series A, 1.32% due 4/01/2007 (d) 2,300 4,425 Mount Lebanon, Pennsylvania, School District, GO, MERLOTS, VRDN, Series B-19, 1.26% due 2/15/2027 (b)(d) 4,425 6,000 Municipal Securities Trust Certificates, Revenue Refunding Bonds, VRDN, Series 2001-121, Class A, 1.19% due 12/22/2009 (c)(d) 6,000 3,500 Norristown, Pennsylvania, TRAN, 2.50% due 12/30/2003 3,521 4,000 Northampton County, Pennsylvania, General Purpose Authority, University Revenue Bonds (Lehigh University), VRDN, Series B, 1.10% due 12/01/2030 (d) 4,000 Northampton County, Pennsylvania, IDA, Revenue Bonds, VRDN (d): 3,845 (DG Properties Inc. Project), AMT, 1.37% due 7/01/2021 3,845 2,125 (Follett Corporation Project), 1.37% due 5/01/2019 2,125 1,710 (Nicos Polymers & Grinding), AMT, 1.37% due 2/01/2020 1,710 3,495 Northumberland County, Pennsylvania, IDA, Revenue Bonds (Butter Krust Baking Company Project), VRDN, AMT, 1.37% due 5/01/2011 (d) 3,495 Pennsylvania Economic Development Financing Authority, EDR, VRDN (d): 4,000 AMT, Series D-7, 1.30% due 8/01/2022 4,000 800 AMT, Series F-5, 1.30% due 12/01/2006 800 1,000 (Gutchess Hardwoods Inc. Project), Series B, 1.15% due 4/01/2005 1,000 5,000 (Northeast Architectural Products), AMT, Series B-5, 1.30% due 8/01/2023 5,000 7,000 Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds (Amtrak Project), VRDN, AMT, Series B, 1.20% due 11/01/2041 (d) 7,000 Pennsylvania Economic Development Financing Authority Revenue Bonds, VRDN, AMT (d): 2,390 (Bentley Graphic Commission Inc.), Series C-4, 1.37% due 4/01/2008 2,390 1,620 (International Business Systems Project), Series B-4, 1.32% due 7/01/2012 1,620 3,780 (Waste Gas Fabricating Company Project), Series C-3, 1.37% due 4/01/2020 3,780 Pennsylvania Energy Development Authority Revenue Bonds, VRDN, AMT (d): 3,730 (B&W Ebensburg Project), 1.20% due 12/01/2011 3,730 900 (Piney Creek), Series C, 1.20% due 12/01/2011 900 2,500 Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT, Series 76, 1.15% due 10/01/2003 2,500 12,483 Pennsylvania State, GO, FLOATS, VRDN, Series 696, 1.20% due 5/01/2018 (d)(f) 12,483 5,880 Pennsylvania State, GO, MERLOTS, VRDN, Series A-15, 1.26% due 1/01/2017 (b)(d) 5,880 2,000 Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue Bonds, VRDN, AMT, Series A, 1.20% due 1/01/2018 (a)(d) 2,000 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (Association of Independent Colleges and Universities): 4,700 Series C-2, 1.80% due 11/01/2003 4,700 1,500 Series D-5, 2.05% due 5/01/2003 1,500 3,750 Series F-3, 2.20% due 5/01/2003 3,750 1,200 Series H-3, 2.10% due 5/15/2003 1,200 5,350 Series J-1, 3% due 5/01/2003 5,405 3,500 VRDN, Series I-7, 1.15% due 11/01/2031 (d) 3,500
CMA PENNSYLVANIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONCLUDED) (IN THOUSANDS)
Face State Amount Issue Value Pennsylvania $ 3,940 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (concluded) (Lafayette College), 2.50% due 11/25/2003 $ 3,969 1,250 Pennsylvania State Higher Educational Facilities Authority, Revenue Refunding Bonds (Carnegie Mellon University), VRDN, Series C, 1.20% due 11/01/2029 (d) 1,250 Philadelphia, Pennsylvania, Authority for IDR, VRDN (d): 17,850 (Fox Chase Cancer Center Project), 1.15% due 7/01/2025 17,850 9,000 (Girard Estate Aramark Project), 1.15% due 5/01/2032 9,000 7,500 (Girard Estate Facilities Leasing), 1.15% due 11/01/2031 7,500 2,455 (Lannett Company Inc. Project), 1.37% due 5/01/2014 2,455 9,090 M/F Housing Revenue Refunding Bonds (Harbor View Towers), 1.20% due 11/01/2027 (e) 9,090 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities Authority, Hospital Revenue Refunding Bonds (Children's Hospital Project), VRDN (d): 3,000 Series A, 1.15% due 2/15/2014 3,000 15,700 Series B, 1.15% due 7/01/2025 15,700 4,500 Series C, 1.15% due 7/01/2031 (b) 4,500 5,100 Series D, 1.15% due 7/01/2031 (b) 5,100 13,700 Philadelphia, Pennsylvania, School District, GO, TRAN, 2.75% due 6/30/2003 13,744 3,550 Philadelphia, Pennsylvania, TRAN, Series A, 3% due 6/30/2003 3,563 2,300 Pottstown Boro, Pennsylvania, Educational Facilities Authority Revenue Bonds (The Hill School Project), VRDN, 1.25% due 8/01/2032 (d) 2,300 9,285 Quakertown, Pennsylvania, General Authority Revenue Bonds (Pooled Financing Program), VRDN, Series A, 1.20% due 7/01/2026 (d) 9,285 3,375 Scranton-Lackawanna, Pennsylvania, Health and Welfare Authority, Revenue Refunding Bonds, MERLOTS, VRDN, Series A-18, 1.26% due 3/01/2015 (a)(d) 3,375 4,535 Somerset County, Pennsylvania, IDA, Revenue Bonds (Somerset Welding and Steel), VRDN, AMT, 1.29% due 3/02/2015 (d) 4,535 9,000 South-Central Pennsylvania, General Authority Revenue Bonds, VRDN, Series A, 1.20% due 6/01/2031 (a)(d) 9,000 2,165 Susquehanna County, Pennyslvania, IDA, Revenue Bonds (Pennfield Corporation Project), VRDN, AMT, 1.32% due 8/01/2014 (d) 2,165 7,100 Temple University of the Commonwealth of Pennsylvania, System of Higher Education Revenue Refunding Bonds (University Funding Obligation), 3% due 5/06/2003 7,109 6,000 Union County, Pennsylvania, Hospital Authority, Hospital Revenue Refunding Bonds (Evangelical Community Hospital), 1.30% due 2/01/2004 6,000 Venango County, Pennsylvania, CP (Scrubgrass Project): 15,000 Series 90-A, 1.07% due 9/10/2003 15,000 19,800 Series 90-B, 1.10% due 9/02/2003 19,800 2,000 Washington County, Pennsylvania, IDA, IDR (Pennatronics Corporation Project), VRDN, AMT, 1.29% due 11/01/2020 (d) 2,000 3,000 Washington, Pennsylvania, School District, GO, TRAN, 2.50% due 6/30/2003 3,005 1,510 Westmoreland County, Pennsylvania, IDA, Revenue Bonds (Newcomer Products), VRDN, AMT, 1.29% due 12/01/2006 (d) 1,510 2,915 York County, Pennsylvania, IDA, Revenue Bonds (495 Leasing Project), VRDN, AMT, 1.37% due 6/01/2021 (d) 2,915 Total Investments (Cost--$593,544*)--100.4% 593,544 Liabilities in Excess of Other Assets--(0.4%) (2,439) --------- Net Assets--100.0% $ 591,105 ========= (a)AMBAC Insured. (b)MBIA Insured. (c)FGIC Insured. (d)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. (e)GNMA Collateralized. (f)FSA Insured. *Cost for Federal income tax purposes. See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 2003 Assets: Investments, at value (identified cost--$593,543,799) $ 593,543,799 Cash 10,358 Interest receivable 1,691,427 Prepaid registration fees and other assets 11,548 --------------- Total assets 595,257,132 --------------- Liabilities: Payables: Securities purchased $ 3,750,000 Investment adviser 249,719 Distributor 97,993 Beneficial interest redeemed 6,804 4,104,516 --------------- Accrued expenses and other liabilities 47,356 --------------- Total liabilities 4,151,872 --------------- Net Assets $ 591,105,260 =============== Net Assets Consist of: Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 59,121,176 Paid-in capital in excess of par 532,066,239 Accumulated realized capital losses--net (82,155) --------------- Net Assets--Equivalent to $1.00 per share based on 591,211,758 shares of beneficial interest outstanding $ 591,105,260 =============== See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2003 Investment Income: Interest and amortization of premium and discount earned $ 8,896,791 Expenses: Investment advisory fees $ 2,886,959 Distribution fees 733,884 Accounting services 121,885 Transfer agent fees 70,874 Professional fees 56,203 Custodian fees 21,371 Registration fees 20,612 Printing and shareholder reports 20,574 Pricing fees 11,895 Trustees' fees and expenses 5,728 Other 15,430 --------------- Total expenses 3,965,415 --------------- Investment income--net 4,931,376 Realized Loss on Investments--Net (300) --------------- Net Increase in Net Assets Resulting from Operations $ 4,931,076 =============== See Notes to Financial Statements.
CMA PENNSYLVANIA 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 $ 4,931,376 $ 10,743,926 Realized loss on investments--net (300) (715) --------------- --------------- Net increase in net assets resulting from operations 4,931,076 10,743,211 --------------- --------------- Dividends to Shareholders: Dividends to shareholders from investment income--net (4,931,376) (10,743,926) --------------- --------------- Beneficial Interest Transactions: Net proceeds from sale of shares 1,871,842,607 2,093,897,282 Value of shares issued to shareholders in reinvestment of dividends 4,931,064 10,698,540 --------------- --------------- 1,876,773,671 2,104,595,822 Cost of shares redeemed (1,914,023,882) (2,077,642,096) --------------- --------------- Net increase (decrease) in net assets derived from beneficial interest transactions (37,250,211) 26,953,726 --------------- --------------- Net Assets: Total increase (decrease) in net assets (37,250,511) 26,953,011 Beginning of year 628,355,771 601,402,760 --------------- --------------- End of year $ 591,105,260 $ 628,355,771 =============== =============== See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND FINANCIAL HIGHLIGHTS
The following per share data and ratios have been derived from information provided in the financial statements. For the Year Ended March 31, 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 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 .83% 1.71% 3.47% 2.81% 2.77% ========= ========= ========= ========= ========= Ratios to Average Net Assets: Expenses .67% .68% .68% .69% .70% ========= ========= ========= ========= ========= Investment income--net .84% 1.72% 3.42% 2.78% 2.71% ========= ========= ========= ========= ========= Supplemental Data: Net assets, end of year (in thousands) $ 591,105 $ 628,356 $ 601,403 $ 539,177 $ 528,840 ========= ========= ========= ========= ========= ++Amount is less than $.01 per share. See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND NOTES TO FINANCIAL STATEMENTS 1. Significant Accounting Policies: CMA Pennsylvania 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 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 $11,097 have 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 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 PENNSYLVANIA MUNICIPAL MONEY FUND 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, 2003, the Fund reimbursed FAM $11,739 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, 2003 and March 31, 2002 was as follows: 3/31/2003 3/31/2002 Distributions paid from: Tax-exempt income $ 4,931,376 $ 10,743,926 ------------ ------------ Total distributions $ 4,931,376 $ 10,743,926 ============ ============ As of March 31, 2003, there were no significant differences between the book and tax components of net assets. 5. Capital Loss Carryforward: On March 31, 2003, the Fund had a net capital loss carryforward of $81,856, of which $22,380 expires in 2006, $3,815 expires in 2007, $20,995 expires in 2008, $33,951 expires in 2009 and $715 expires in 2010. This amount will be available to offset like amounts of any future taxable gains. CMA PENNSYLVANIA MUNICIPAL MONEY FUND INDEPENDENT AUDITORS' REPORT To the Shareholders and Board of Trustees of CMA Pennsylvania 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 Pennsylvania 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 the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to 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, 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 Pennsylvania 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 PENNSYLVANIA MUNICIPAL MONEY FUND IMPORTANT TAX INFORMATION (UNAUDITED) All of the net investment income distributions paid by CMA Pennsylvania Municipal Money Fund of CMA Multi-State Municipal Series Trust during its taxable year ended March 31, 2003 qualify as tax-exempt interest dividends for Federal income tax purposes. Please retain this information for your records. CMA PENNSYLVANIA 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, Trustee and Asset Management, L.P. ("FAM") Advised NJ 08543-9011 1988 to Funds since 1999; Chairman (Americas Age: 62 present 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 1989 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, Albany since 2000 and Professor thereof NJ 08543-9095 from 1989 to 2000; International Consultant, Age: 62 Urban Institute from 1995 to 1999. Cynthia A. Montgomery Trustee 1994 to Professor, Harvard Business School since 45 Funds Unum P.O. Box 9095 present 1989; Director, Unum Provident Corporation 51 Portfolios Provident Princeton, since 1990; Director, Newell Rubbermaid, Inc. Corporation; NJ 08543-9095 since 1995. Newell Age: 50 Rubbermaid, Inc.
CMA PENNSYLVANIA 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) Charles C. Reilly Trustee 1990 to Self-employed financial consultant since 45 Funds None P.O. Box 9095 present 1990. 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, Ethics and Character; Professor of Education NJ 08543-9095 at Boston University from 1982 to 1999 and Age: 70 Professor Emeritus since 1999. Roscoe S. Suddarth Trustee 2000 to President, Middle East Institute from 1995 45 Funds None P.O. Box 9095 present to 2001; Foreign Service Officer, United 51 Portfolios Princeton, States Foreign Service from 1961 to 1995; NJ 08543-9095 Career Minister from 1989 to 1995; Deputy Age: 67 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, Leonard 45 Funds Bowne & Co., P.O. Box 9095 present N. Stern School of Business Administration 51 Portfolios Inc.; Vornado Princeton, since 1994. Operating NJ 08543-9095 Company; Age: 65 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.
CMA PENNSYLVANIA 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 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 Princeton, and and since 1999; Vice President of FAMD since 1999; Director of MLIM Taxation NJ 08543-9011 Treasurer 1999 to since 1990. Age: 42 present Kenneth A. Jacob Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fixed P.O. Box 9011 Vice present Income) of MLIM from 1997 to 2000. Princeton, President NJ 08543-9011 Age: 51 John M. Loffredo Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fixed P.O. Box 9011 Vice present Income) of MLIM from 1998 to 2000. Princeton, President NJ 08543-9011 Age: 39 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; Attorney Princeton, associated with MLIM since 1998; Assistant General Counsel of Chancellor NJ 08543-9011 LGT Asset Management, Inc. from 1997 to 1998. Age: 39 *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. 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 Pennsylvania Municipal Money Fund By: _/s/ Terry K. Glenn_______ Terry K. Glenn, President of CMA Pennsylvania 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 Pennsylvania Municipal Money Fund Date: May 21, 2003 By: _/s/ Donald C. Burke________ Donald C. Burke, Chief Financial Officer of CMA Pennsylvania Municipal Money Fund Date: May 21, 2003 Attached hereto as an exhibit are the certifications pursuant to Section 906 of the Sarbanes-Oxley Act. EX-99.CERT 3 ex99cert.txt EX-99 CERT EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Terry K. Glenn, President of CMA Pennsylvania Municipal Money Fund, certify that: 1.I have reviewed this report on Form N-CSR of CMA Pennsylvania Municipal Money Fund and CMA Multi-State Municipal Series Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. Date: May 21, 2003 /s/ Terry K. Glenn Terry K. Glenn, President of CMA Pennsylvania Municipal Money Fund EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Donald C. Burke, Chief Financial Officer of CMA Pennsylvania Municipal Money Fund, certify that: 1. I have reviewed this report on Form N-CSR of CMA Pennsylvania Municipal Money Fund and CMA Multi-State Municipal Series Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. Date: May 21, 2003 /s/ Donald C. Burke Donald C. Burke, Chief Financial Officer of CMA Pennsylvania Municipal Money Fund Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Terry K. Glenn, President of CMA Pennsylvania Municipal Money Fund (the "Fund"), certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: May 21, 2003 /s/ Terry K. Glenn Terry K. Glenn, President of CMA Pennsylvania Municipal Money Fund Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Donald C. Burke, Chief Financial Officer of CMA Pennsylvania Municipal Money Fund (the "Fund"), certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: May 21, 2003 /s/ Donald C. Burke Donald C. Burke, Chief Financial Officer of CMA Pennsylvania Municipal Money Fund -----END PRIVACY-ENHANCED MESSAGE-----