NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Government Securities Fund (the "Fund") is registered under the Investment Company Act of 1940 as a
no load, diversified, open-end management investment company. The Fund's financial statements are prepared in
accordance with generally accepted accounting principles, which may require the use of management accruals
and estimates. These unaudited financial statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results for the interim period presented. All such adjustments are
of a normal recurring nature. The following is a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments--Portfolio securities with remaining maturities of greater than sixty days, for which
market quotations are readily available, are valued at market value. As securities transition from sixty-one to sixty
days to maturity, the difference between the valuation existing on the sixty-first day before maturity and maturity
value is amortized on a straight-line basis to maturity. Securities maturing sixty days or less from their date of
acquisition are valued at amortized cost, which approximates market value. For the purpose of valuation, the
maturity of a variable rate security is deemed to be the next coupon date on which the interest rate is to be
adjusted. Other investments for which market value quotations are not available are valued at their fair value as
determined in good faith by or under the direction of the Fund's Board of Trustees.
(b) Repurchase agreements--The Fund invests in US Government securities pursuant to repurchase agreements.
Under such agreements, the counterparty agrees to repurchase the security at a mutually agreed upon time and
price. The Fund takes possession of the underlying securities, marks to market such securities and, if necessary,
receives additional securities daily to ensure that the contract is fully collateralized.