N-CSR 1 ml7128.txt CMA PENNSYLVANIA 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 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 (BULL LOGO) Merrill Lynch Investment Managers www.mlim.ml.com CMA Pennsylvania Municipal Money Fund Annual Report March 31, 2004 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 Pennsylvania Municipal Money Fund of CMA Multi-State Municipal Series Trust Box 9011 Princeton, NJ 08543-9011 (GO PAPERLESS LOGO) It's Fast, Convenient, & Timely! To sign up today, go to www.icsdelivery.com/live. 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, 2004 qualify as tax-exempt interest dividends for Federal income tax purposes. Please retain this information for your records. 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. CMA PENNSYLVANIA 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, (Terry K. Glenn) Terry K. Glenn President and Trustee CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 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 fiscal year in light of the existing market conditions? For the 12-month period ended March 31, 2004, CMA Pennsylvania Municipal Money Fund paid shareholders a net annualized yield of .42%.* As of March 31, 2004, the Fund's seven-day yield was .39%. The Fund's yield was hindered early in the period by the maturity of a large number of fixed rate securities that had been added to the portfolio in the second and third quarters of 2002. This was because we were forced to reinvest the proceeds at lower prevailing interest rates. Nevertheless, we invested in variable rate demand notes, which were yielding 1.25% versus 1.10% for one-year fixed rate paper at this particular time. This ultimately benefited Fund performance. For its part, the Federal Reserve Board remained accommodative throughout the year. 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. Describe conditions in the Commonwealth of Pennsylvania during the period. For the first half of the 12-month period ended March 31, 2004, Pennsylvania's economy remained weak. The commonwealth continued to face substantial job losses in the manufacturing, professional services and retail sectors. These losses offset employment gains in such areas of the economy as education, health care and leisure. Personal bankruptcies continued to rise despite growth in income and strong house price appreciation. As summer 2003 ended, however, an increasing number of signs pointed to economic strength. Indicators in September showed improvements in the long-challenged manufacturing sector, with firms reporting growth in new orders and shipments. *Based on a constant investment throughout the period, with dividends compounded daily, and reflecting a net return to the investor after all expenses. Against this backdrop, Pennsylvania's finances continued to be tested. As its 2003 fiscal year came to a close, the commonwealth faced a $700 million deficit. To close the budget gap, Pennsylvania cut spending and relied on nonrecurring revenues, such as funds obtained from a legal settlement with the tobacco industry. The budget imbalance worsened for the 2004 fiscal year, with a $2.4 billion gap. The commonwealth addressed this deficit through targeted spending cuts and increases in cigarette and personal income taxes. Despite the fiscal challenges, Pennsylvania has benefited from the diversification of its economic base, its generally conservative financial management, and its large financial reserves accumulated during more prosperous times. 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. 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. Given our expectation that monetary policy would remain accommodative for some time, beginning in mid-May, we purchased approximately $79 million in fixed rate securities offering yields ranging from 1.00% to 1.30%. These purchases benefited the Fund on a relative basis, as we were able to maintain a larger percentage of fixed rate securities than our peers. CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Although the final months of 2003 brought evidence of a recovering economy, inflation remained under control and the job market continued to be sluggish. These factors reinforced our belief that short-term interest rates would remain at current levels for some time. Thus, despite Pennsylvania'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 $24 million in fixed rate securities 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 believe 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 PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Schedule of Investments (In Thousands)
Face Amount Municipal Bonds Value Pennsylvania--98.9% $ 3,760 ABN AMRO Munitops Certificates Trust, Pennsylvania, GO, VRDN, Series 2001-18, 1.08% due 10/01/2009 (c)(d) $ 3,760 8,450 ABN AMRO Munitops Certificates Trust, Pennsylvania, VRDN, Refunding, Series 2003-20, 1.08% due 7/15/2011 (c)(d) 8,450 21,879 ABN AMRO Munitops Certificates Trust, Pennsylvania, VRDN, Series 1999-16, 1.08% due 3/07/2007 (b)(d) 21,879 9,500 ABN AMRO Munitops Certificates Trust Revenue Bonds, Pennsylvania, VRDN, Series 2003-24, 1.08% due 6/01/2011 (d)(e) 9,500 14,455 Allegheny County, Pennsylvania, GO, Series C-51, 1.30% due 5/03/2004 14,455 4,135 Allegheny County, Pennsylvania, Hospital Development Authority Revenue Bonds (Presbyterian University Hospital), ACES, VRDN, Series B-3, 1.05% due 3/01/2018 (d) 4,135 6,415 Allegheny County, Pennsylvania, IDA, Health and Housing Facilities Revenue Refunding Bonds (Longwood at Oakmont Inc.), VRDN, Senior Series B, 1.13% due 7/01/2027 (d)(g) 6,415 Allegheny County, Pennsylvania, IDA, Revenue Bonds (d): 2,920 (The Bradley Center), VRDN, Series A, 1.09% due 11/01/2014 2,920 3,000 (Children's Museum of Pittsburgh), Puts, 2% due 10/01/2004 3,014 5,000 (Western Pennsylvania School for the Blind), Puts, 0.85% due 7/01/2004 5,000 7,500 Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds, MERLOTS, VRDN, Series A-48, 1.09% due 9/01/2011 (a)(d) 7,500 1,520 Beaver County, Pennsylvania, IDA, IDR (Warehouse Real Estate), VRDN, AMT, Series A, 1.14% due 8/01/2008 (d) 1,520 Berks County, Pennsylvania, IDA, Manufacturing Facilities Revenue Bonds ,VRDN, AMT (d): 860 (Berks Products Corporation), 1.16% due 8/01/2006 860 4,365 (Ram Industries Inc. Project), 1.13% due 12/01/2011 4,365 2,690 Berks County, Pennsylvania, IDA Revenue Bonds (World Electronics Sales), VRDN, AMT, 1.21% due 8/01/2016 (d) 2,690 2,800 Bethel Park, Pennsylvania, School District, GO, TRAN, 1.60% due 6/30/2004 2,804 400 Bethel Township, Pennsylvania, IDA, IDR (Brentwood Industries Inc. Project), VRDN, AMT, 1.16% due 11/01/2011 (d) 400 5,675 Blair County, Pennsylvania, IDA, Revenue Bonds (NPC Inc. Project), VRDN, AMT, 1.14% due 9/01/2017 (d) 5,675 2,500 Boyertown, Pennsylvania, Area School District, GO, TRAN, 1.50% due 6/30/2004 2,502 2,985 Bradford County, Pennsylvania, IDA, EDR (Towanda Printing Company), VRDN, AMT, 1.14% due 9/01/2016 (d) 2,985 2,360 Bradford County, Pennsylvania, IDA, Revenue Bonds (State Aggregates Inc. Project), VRDN, AMT, 1.21% due 2/01/2015 (d) 2,360 Bucks County, Pennsylvania, IDA, Revenue Bonds , VRDN, AMT (d): 4,145 (Bracalentes Manufacturing Company Inc. Project), 1.21% due 6/01/2016 4,145 4,500 (Harsco Corporation Project), 1.21% due 8/01/2011 4,500 3,740 (L&P Properties LP Project), Series A, 1.31% due 6/01/2014 3,740 735 (Specialty Ring Products Inc.), 1.21% due 10/01/2009 735 Butler County, Pennsylvania, IDA, Revenue Bonds (Concordia Lutheran Ministers) (d)(g): 3,750 Puts, Series A, 1.30% due 4/01/2004 3,750 3,000 Puts, Series B, 1.10% due 8/01/2004 3,000 4,500 VRDN, Series C, 1.15% due 10/01/2030 4,500 2,065 Carbondale, Pennsylvania, IDA, IDR (JM Wells Company LP Project), VRDN, AMT, 1.20% due 9/01/2015 (d) 2,065 2,300 Cheltenham Township, Pennsylvania, GO, TRAN, 2% due 12/31/2004 2,314
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund ACES SM 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 Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds MERLOTS Municipal Extendible Receipt Liquidity Option Tender Securities MSTR Municipal Securities Trust Receipts PCR Pollution Control Revenue Bonds PUTTERS Puttable Tax-Exempt Receipts RAN Revenue Anticipation Notes S/F Single Family TEAMS Tax-Exempt Adjustable Municipal Securities TRAN Tax Revenue Anticipation Notes VRDN Variable Rate Demand Notes CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Schedule of Investments (continued) (In Thousands)
Face Amount Municipal Bonds Value Pennsylvania (continued) Chester County, Pennsylvania, IDA Revenue Bonds, VRDN, AMT (d): $ 2,520 (The Hankin Group), Series A, 1.21% due 12/01/2020 $ 2,520 2,745 (West Vincent Association), Series B, 1.21% due 12/01/2020 2,745 1,240 Crawford County, Pennsylvania, IDA (Heatrix Inc. Project), VRDN, AMT, Series A, 1.21% due 11/01/2017 (d) 1,240 2,950 Dauphin County, Pennsylvania, IDA, Revenue Bonds (Interconnection System Project), VRDN, AMT, 1.10% due 1/01/2014 (d) 2,950 17,500 Delaware County, Pennsylvania (Excelon Corp.), CP, 1% due 4/06/2004 17,500 Eagle Tax-Exempt Trust, Pennsylvania, VRDN (d): 4,300 GO, Series 94, Class 3803, 1.08% due 5/01/2008 4,300 5,940 Series 96C, Class 3801, 1.08% due 5/01/2014 5,940 1,900 East Penn, Pennsylvania, Industrial and Commercial Development Authority, IDR (Electronic Data Systems Corporation Project), Refunding, VRDN, TEAMS, 1.11% due 12/31/2006 (d) 1,900 2,100 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, Series D, 1.05% due 3/01/2024 (d) 2,100 1,430 Erie County, Pennsylvania, Industrial Development (Reed Manufacturing Corp. Project), VRDN, AMT, 1.16% due 6/01/2006 (d) 1,430 1,735 Greene County, Pennsylvania, IDA, Revenue Bonds (Manufacturing Facilities-Kyowa America), VRDN, AMT, Series D, 1.21% due 7/01/2014 (d) 1,735 5,485 Grove City, Pennsylvania, Area Hospital Authority, Health Care Facility Revenue Bonds (John XXIII Home Project), VRDN, 1.09% due 2/01/2030 (d) 5,485 2,665 Hampden, Pennsylvania, IDA, Revenue Refunding Bonds (Pennsylvania Pipe Inc.), VRDN, AMT, 1.21% due 12/01/2014 (d) 2,665 1,250 Hampton Township, Pennsylvania, TRAN, 2% due 12/31/2004 1,257 7,600 Huntingdon County, Pennsylvania, General Authority, College Revenue Bonds (Juniata College Project), Puts, Series A, 1.15% due 5/01/2004 (d) 7,600 2,780 Indiana County, Pennsylvania, IDA, PCR, Refunding (Conemaugh Project), VRDN, AMT, Series A, 1.10% due 6/01/2027 (d) 2,780 Jackson Township, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (d): 1,145 (I Auman Machine Company Inc. Project), 1.21% due 6/01/2008 1,145 5,610 (V&S Lebanon Galvanizing Project), 1.24% due 4/01/2021 5,610 6,390 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 1.08% due 9/15/2020 (d) 6,390 1,400 Lackawanna County, Pennsylvania, IDA, IDR (Herff Jones Inc. Project), VRDN, AMT, 1.16% due 6/01/2026 (d) 1,400 7,195 Lancaster County, Pennsylvania, Hospital Authority, Health Center Revenue Refunding Bonds (Brethren Village), VRDN, 1.07% due 6/15/2020 (d) 7,195 1,400 Lancaster, Pennsylvania, IDA, IDR (Bucks County Project), VRDN, AMT, 1.16% due 2/01/2010 (d) 1,400 2,900 Lehigh County, Pennsylvania, IDA, Revenue Bonds (New Columbia Joist Company), VRDN, AMT, Series B, 1.16% due 11/01/2022 (d) 2,900 Luzerne County, Pennsylvania, IDA, Revenue Bonds, VRDN (d): 1,115 (Diamond Manufacturing Company), 1.21% due 5/01/2006 1,115 4,015 (Nardone Brothers Baking Project), AMT, 1.16% due 3/01/2019 4,015 2,700 Monroe County, Pennsylvania, IDA, Revenue Refunding Bonds (UTD Steel Enterprises Project), VRDN, AMT, Series A, 1.14% due 9/01/2013 (d) 2,700 Montgomery County, Pennsylvania, IDA, Revenue Bonds (Alcom Printing Group), VRDN, AMT (d): 290 Series A, 1.36% due 1/01/2020 290 730 Series B, 1.21% due 1/01/2020 730 Montgomery County, Pennsylvania, IDA, Revenue Bonds, VRDN (d): 1,435 (Big Little Association Project), Series A, 1.21% due 2/01/2019 1,435 3,515 (Edmund Optical Manufacturing LLC Project), AMT, 1.21% due 4/01/2016 3,515 1,250 (Independent Support System Project), 1.11% due 3/01/2016 1,250 415 (Jadko Inc. Project), AMT, Series B, 1.21% due 6/01/2008 415 505 (Jadko Project), AMT, Series A, 1.21% due 6/01/2020 505 1,720 (PB Hoffmann LLC Project), AMT, 1.21% due 1/01/2020 1,720 2,200 (Valley Forge Baptist), 1.11% due 9/01/2023 2,200
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Schedule of Investments (continued) (In Thousands)
Face Amount Municipal Bonds Value Pennsylvania (continued) $ 1,900 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds (Laneko Engineering), VRDN, AMT, Series A, 1.16% due 4/01/2007 (d) $ 1,900 4,100 Montour, Pennsylvania, School District, GO, TRAN, 1.60% due 6/30/2004 4,105 4,425 Mount Lebanon, Pennsylvania, School District, GO, MERLOTS, VRDN, Series B19, 1.09% due 2/15/2027 (b)(d) 4,425 6,000 Municipal Securities Trust Certificates Revenue Refunding Bonds, Pennsylvania, VRDN, Series 2001-121, Class A, 1.07% due 12/22/2009 (c)(d) 6,000 750 Norristown, Pennsylvania, GO, TRAN, 1.50% due 12/30/2004 750 5,300 North Wales, Pennsylvania, Water Authority Revenue Notes (Rural Water Projects), RAN, 2% due 11/01/2004 5,328 Northampton County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (d): 3,645 (DG Properties Inc. Project), 1.21% due 7/01/2021 3,645 2,205 (Nicos Polymers & Grinding), 1.21% due 2/01/2020 2,205 2,585 (Reale Association Project), 1.16% due 4/01/2012 2,585 3,175 Northumberland County, Pennsylvania, IDA, Revenue Bonds (Butter Krust Baking Company Project), VRDN, AMT, 1.21% due 5/01/2011 (d) 3,175 200 Pennsylvania Economic Development Financing Authority, Development Revenue Bonds (Donald R. Kleine Living Trust), VRDN, AMT, Series A4, 1.11% due 4/01/2011 (d) 200 Pennsylvania Economic Development Financing Authority, EDR,VRDN (d): 100 AMT, Series A6, 1.11% due 4/01/2007 100 3,800 AMT, Series D-7, 1.11% due 8/01/2022 3,800 600 AMT, Series F-5, 1.11% due 12/01/2006 600 250 AMT, Series G5, 1.11% due 12/01/2013 250 375 (G&B Specialties Inc.), AMT, Series D4, 1.11% due 9/01/2015 375 600 (Gutchess Hardwoods Inc. Project), Series B, 1.05% due 4/01/2005 600 900 (The Herr Group), Series H7, 1.11% due 12/01/2021 900 5,000 (Northeast Architectural Products), AMT, Series B5, 1.11% due 8/01/2023 5,000 100 Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds (Pittsburgh Thermal Limited), VRDN, Series A1, 1.11% due 5/01/2022 (d) 100 Pennsylvania Economic Development Financing Authority Revenue Bonds, VRDN (d): 1,935 (Bentley Graphic Commission Inc.), AMT, Series C-4, 1.21% due 4/01/2008 1,935 1,000 (Conestoga Wood Specialists), Series C-1, 1.21% due 3/01/2015 1,000 1,410 (International Business Systems Project), AMT, Series B-4, 1.16% due 7/01/2012 1,410 3,410 (Waste Gas Fabricating Company Project), AMT, Series C-3, 1.21% due 4/01/2020 3,410 900 Pennsylvania Energy Development Authority Revenue Bonds (Piney Creek), VRDN, AMT, Series C, 1.05% due 12/01/2011 (d) 900 510 Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT, Series 81A, 1.25% due 4/01/2005 (d) 510 12,423 Pennsylvania State, GO, FLOATS, VRDN, Series 696, 1.07% due 5/01/2018 (d)(e) 12,423 5,870 Pennsylvania State, GO, MERLOTS, VRDN, Series A15, 1.09% due 1/01/2017 (b) 5,870 500 Pennsylvania State, GO, Refunding, First Series, 5.25% due 1/15/2005 (b)(d) 516 2,000 Pennsylvania State, GO, VRDN, First Series, 0.50% due 1/01/2005 (b)(d) 2,059 Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue Refunding Bonds, VRDN, AMT (d)(e): 15,500 Series A, 1.09% due 6/01/2025 15,500 6,000 Series B, 1.10% due 1/01/2017 6,000 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds Association of Independent Colleges and Universities (d): 700 Puts, Series D-4, 1.15% due 5/01/2004 700 2,000 Puts, Series M-3, 1.10% due 11/01/2004 2,000 6,200 Puts, Widener University, Series F-3, 1.15% due 5/01/2004 (f) 6,200 1,000 VRDN, Series M-1, 1.11% due 11/01/2027 1,000
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Schedule of Investments (continued) (In Thousands)
Face Amount Municipal Bonds Value Pennsylvania (concluded) Pennsylvania State Higher Educational Facilities Authority, Revenue Refunding Bonds, VRDN (d): $ 6,000 (Carnegie Mellon University),Series A, 1.10% due 11/01/2025 $ 6,000 2,800 (Carnegie Mellon University), Series C, 1.10% due 11/01/2029 2,800 9,600 (Saint Joseph's University), Series A, 1.08% due 5/01/2031 (g) 9,600 3,000 Pennsylvania State Public School Building Authority, School Revenue Bonds, MERLOTS, VRDN, Series A42, 1.09% due 6/01/2028 (d)(e) 3,000 3,000 Philadelphia, Pennsylvania, Airport Revenue Refunding Bonds (Philadelphia Airport System), Series A, 6% due 6/15/2004 (c)(d) 3,031 Philadelphia, Pennsylvania, Authority for IDR,VDRN (d): 4,550 (Comhar Inc. Project), 1.06% due 9/01/2023 4,550 2,200 (Fox Chase Cancer Center Project), 1.12% due 7/01/2025 2,200 5,000 (Gift of Life Donor Program Project), 1.05% due 12/01/2034 5,000 1,685 (Henry H. Ottens Manufacturing Project), 1.21% due 10/01/2013 1,685 2,650 (Lannett Company Inc. Project), 1.21% due 5/01/2014 2,650 7,500 Philadelphia, Pennsylvania, GO, TRAN, 2% due 6/30/2004 7,519 Philadelphia, Pennsylvania, Gas Works Revenue Refunding Bonds, VRDN (d)(e): 2,395 FLOATS, Series 906, 1.07% due 7/01/2017 2,395 4,550 PUTTERS, Series 384, 1.10% due 7/01/2011 4,550 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities Authority, Hospital Revenue Refunding Bonds (Children's Hospital Project), VRDN (d): 5,800 Series A, 1.10% due 2/15/2014 5,800 2,400 Series A, 1.11% due 7/01/2022 2,400 4,700 Series B, 1.10% due 7/01/2025 4,700 600 Series D, 1.10% due 7/01/2031 (b) 600 2,995 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, FLOATS, VRDN, Series 773, 1.15% due 11/01/2031 (c)(d) 2,995 4,275 Pittsburgh, Pennsylvania, Water and Sewer Authority, Water and Sewer System Revenue Refunding Bonds, 1.15% due 9/01/2004 (e) 4,275 2,300 Pottstown Borough, Pennsylvania, Educational Facilities Authority Revenue Bonds (The Hill School Project), VRDN, 1.12% due 8/01/2032 (d) 2,300 2,000 Red Lion, Pennsylvania, Area School District, TRAN, 1.50% due 6/30/2004 2,002 2,900 Scranton-Lackawanna, Pennsylvania, Health and Welfare Authority, Revenue Refunding Bonds, MERLOTS, VRDN, Series A-18, 1.09% due 3/01/2015 (a)(d) 2,900 1,600 Somerset County, Pennsylvania, Hospital Authority Revenue Bonds (Somerset Community Hospital Project), Puts, Series B, 1.30% due 3/01/2005 (d)(g) 1,600 4,015 Somerset County, Pennsylvania, IDA, Revenue Bonds (Somerset Welding and Steel), VRDN, AMT, 1.16% due 3/02/2015 (d) 4,015 4,205 Susquehanna County, Pennsylvania, IDA, Revenue Bonds (Pennfield Corporation Project), VRDN, AMT, 1.16% due 8/01/2014 (d) 4,205 6,845 Union County, Pennsylvania, Hospital Authority, Hospital Revenue Refunding Bonds (Evangelical Community Hospital), VRDN, 1.22% due 2/01/2005 (d)(g) 6,845 Venango, Pennsylvania, IDA, CP: 10,000 1% due 5/07/2004 10,000 15,000 1% due 8/11/2004 15,000 2,000 Washington County, Pennsylvania, IDA, IDR (Pennatronics Corporation Project), VRDN, AMT, 1.16% due 11/01/2020 (d) 2,000 1,000 Washington County, Pennsylvania, Revenue Bonds, TRAN, 2% due 12/30/2004 1,006 1,155 Westmoreland County, Pennsylvania, IDA, Revenue Bonds (Newcomer Products), VRDN, AMT, 1.21% due 12/01/2006 (d) 1,155 4,000 York County, Pennsylvania, GO, TRAN, 1.75% due 7/30/2004 4,009 2,670 York County, Pennsylvania, IDA, Revenue Bonds (495 Leasing Project), VRDN, AMT, 1.21% due 6/01/2021 (d) 2,670
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Schedule of Investments (concluded) (In Thousands)
Face Amount Municipal Bonds Value Puerto Rico--0.7% $ 3,500 Puerto Rico Commonwealth, TRAN, 2% due 7/30/2004 $ 3,512 Total Investments (Cost--$498,460*)--99.6% 498,460 Other Assets Less Liabilities--0.4% 1,814 --------- Net Assets--100.0% $ 500,274 ========= (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, 2004. (e)FSA Insured. (f)Prerefunded. (g)Radian Insured. *Cost for Federal income tax purposes. See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Statement of Assets and Liabilities
As of March 31, 2004 Assets Investments, at value (identified cost--$498,459,745) $ 498,459,745 Cash 54,690 Receivables: Interest $ 1,378,917 Beneficial interest 1,054,127 2,433,044 --------------- Prepaid expenses and other assets 15,570 --------------- Total assets 500,963,049 --------------- Liabilities Payables: Securities purchased 510,000 Distributor 99,547 Investment adviser 33,795 Other affiliates 14,008 657,350 --------------- Accrued expenses and other liabilities 32,115 --------------- Total liabilities 689,465 --------------- Net Assets Net assets $ 500,273,584 =============== Net Assets Consist of Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 50,037,924 Paid-in capital in excess of par 450,316,977 Accumulated realized capital losses--net (81,317) --------------- Net Assets--Equivalent to $1.00 per share based on 500,379,244 shares of beneficial interest outstanding $ 500,273,584 =============== See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Statement of Operations
For the Year Ended March 31, 2004 Investment Income Interest and amortization of premium and discount earned $ 5,979,266 Expenses Investment advisory fees $ 2,669,193 Distribution fees 664,454 Accounting services 114,796 Transfer agent fees 73,052 Professional fees 62,862 Printing and shareholder reports 24,770 Custodian fees 19,541 Registration fees 17,394 Pricing fees 15,539 Trustees' fees and expenses 5,442 Other 16,766 --------------- Total expenses 3,683,809 --------------- Investment income--net 2,295,457 --------------- Realized Gain on Investments--Net Realized gain on investments--net 838 --------------- Net Increase in Net Assets Resulting from Operations $ 2,296,295 =============== See Notes to Financial Statements.
CMA PENNSYLVANIA 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 $ 2,295,457 $ 4,931,376 Realized gain (loss) on investments--net 838 (300) --------------- --------------- Net increase in net assets resulting from operations 2,296,295 4,931,076 --------------- --------------- Dividends to Shareholders Dividends to shareholders from investment income--net (2,295,457) (4,931,376) --------------- --------------- Beneficial Interest Transactions Net proceeds from sale of shares 1,861,178,125 1,871,842,607 Value of shares issued to shareholders in reinvestment of dividends 2,295,509 4,931,064 --------------- --------------- 1,863,473,634 1,876,773,671 Cost of shares redeemed (1,954,306,148) (1,914,023,882) --------------- --------------- Net decrease in net assets derived from beneficial interest transactions (90,832,514) (37,250,211) --------------- --------------- Net Assets Total decrease in net assets (90,831,676) (37,250,511) Beginning of year 591,105,260 628,355,771 --------------- --------------- End of year $ 500,273,584 $ 591,105,260 =============== =============== See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 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% .83% 1.71% 3.47% 2.81% ========== ========== ========== ========== ========== Ratios to Average Net Assets Expenses .68% .67% .68% .68% .69% ========== ========== ========== ========== ========== Investment income--net .43% .84% 1.72% 3.42% 2.78% ========== ========== ========== ========== ========== Supplemental Data Net assets, end of year (in thousands) $ 500,274 $ 591,105 $ 628,356 $ 601,403 $ 539,177 ========== ========== ========== ========== ========== ++Amount is less than $.01 per share. ++++Amount is less than $(.01) per share. See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 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 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 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. 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. 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 $11,312 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. CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Notes to Financial Statements (concluded) 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 $ 2,295,457 $ 4,931,376 ------------ ------------ Total distributions $ 2,295,457 $ 4,931,376 ============ ============ 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 carryforward of $81,317, of which $21,841 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. 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 Pennsylvania 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 Pennsylvania 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 PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 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. Glenn* President 1999 to President of the Merrill Lynch Investment 124 Funds None P.O. Box 9011 and present Managers, L.P. ("MLIM")/Fund Asset 160 Portfolios Princeton, Trustee and Management, L.P. ("FAM")--Advised Funds NJ 08543-9011 1988 to since 1999; Chairman (Americas Region) of Age: 63 present 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. 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 Director'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.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Officers and Trustees (unaudited)(continued)
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* Ronald W. Forbes Trustee 1988 to Professor Emeritus of Finance, School of 51 Funds None P.O. Box 9095 present Business, State University of New York at 50 Portfolios Princeton, Albany since 2000 and Professor thereof NJ 08543-9095 from 1989 to 2000; International Consultant Age: 63 at the Urban Institute from 1995 to 1999. Cynthia A. Montgomery Trustee 1994 to Professor, Harvard Business School since 51 Funds Newell P.O. Box 9095 present 1989. 50 Portfolios Rubbermaid, Inc. Princeton, NJ 08543-9095 Age: 51 Kevin A. Ryan Trustee 1992 to Director Emeritus of The Boston University 51 Funds None P.O. Box 9095 present Center for the Advancement of Ethics and 50 Portfolios Princeton, Character from 1989 to 1999; Professor of NJ 08543-9095 Education at Boston University from 1982 Age: 71 to 1999 and Professor Emeritus thereof since 1999. Roscoe S. Suddarth Trustee 2000 to President of Middle East Institute from 51 Funds None P.O. Box 9095 present 1995 to 2001; Foreign Service Officer of 50 Portfolios Princeton, United States Foreign Service from 1961 to NJ 08543-9095 1995 and Career Minister thereof from 1989 Age: 68 to 1995; Deputy Inspector General of U.S. Department of State from 1991to 1994; U.S. Ambassador to the Hashemite Kingdom of Jordan from 1987 to 1990. Richard R. West Trustee 1988 to Professor of Finance, New York University, 51 Funds Bowne & Co., P.O. Box 9095 present Leonard N. Stern School of Business 50 Portfolios Inc.; Vornado Princeton, Administration from 1982 to 1994 and Operating NJ 08543-9095 Dean Emeritus thereof since 1994. Company; Age: 66 Vornado Realty Trust and Alexander's, Inc. Edward D. Zinbarg Trustee 2000 to Self-employed financial consultant since 51 Funds None P.O. Box 9095 present 1994; Executive Vice President of The 50 Portfolios Princeton, Prudential Insurance Company of America NJ 08543-9095 from 1988 to 1994; Former Director of Age: 69 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.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 Officers and Trustees (unaudited)(concluded)
Position(s) Length of Held with Time Name, Address & Age 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 since P.O. Box 9011 President present 1999; Senior Vice President and Treasurer of Princeton Services since 1999; Princeton, and and Vice President of FAMD since 1999; Director of MLIM Taxation since 1990. NJ 08543-9011 Treasurer 1999 to Age: 43 present Kenneth A. Jacob Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fund Management) P.O. Box 9011 Vice present of MLIM from 1997 to 2000. Princeton, President NJ 08543-9011 Age: 53 John M. Loffredo Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fund Management) P.O. Box 9011 Vice present of MLIM from 1998 to 2000. Princeton, President NJ 08543-9011 Age: 40 Darrin J. SanFillippo Vice 1996 to Vice President of MLIM since 1998. P.O. Box 9011 President present Princeton, NJ 08543-9011 Age: 39 Phillip S. Gillespie Secretary 2000 to First Vice President of MLIM since 2001; Director (Legal Advisory) from 2000 P.O. Box 9011 present to 2001; Vice President from 1999 to 2000; Attorney associated with MLIM Princeton, since 1998. NJ 08543-9011 Age: 40 * 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 800-262-4363. Charles C. Reilly, Trustee of CMA Pennsylvania Municipal Money Fund, has recently retired. The Fund's Board of Trustees wishes Mr. Reilly well in his retirement. CMA PENNSYLVANIA MUNICIPAL MONEY FUND, MARCH 31, 2004 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 Pennsylvania Municipal Money Fund of CMA Multi-State Municipal Series Trust By: _/s/ Terry K. Glenn_______ Terry K. Glenn, President of CMA Pennsylvania 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 Pennsylvania 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 Pennsylvania Municipal Money Fund of CMA Multi-State Municipal Series Trust Date: May 21, 2004