Oppenheimer Rochester Short Term Municipal Fund NCSR Certified annual shareholder report (management investment company)

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 811-22139

Oppenheimer Rochester Short Term Municipal Fund

(Exact name of registrant as specified in charter)

6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)

Arthur S. Gabinet
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
(Name and address of agent for service)

Registrant’s telephone number, including area code: (303) 768-3200

Date of fiscal year end: May 31

Date of reporting period: 5/31/2012

Item 1. Reports to Stockholders.

TOP HOLDINGS AND ALLOCATIONS

Top Ten Categories


General Obligation	20.5	%
Sewer Utilities	9.9
Highways/Commuter Facilities	7.9
Diversified Financial Services	7.6
Water Utilities	5.6
Electric Utilities	5.3
Tax Increment Financing	5.0
Government Appropriation	4.4
Higher Education	4.1
Special Tax	3.7

Portfolio holdings are subject to change. Percentages are as of May 31, 2012, and are based on total assets.

Credit Allocation


Credit Rating Breakdown	NRSRO Only Total

AAA		1.1	%
AA		39.4
A		40.2
BBB		14.3
Unrated		5.0

Total		100.0	%

The percentages above are based on the market value of the Fund’s securities as of May 31, 2012, and are subject to change. All securities except for those labeled “unrated” have been rated by at least one Nationally Recognized Statistical Rating Organization (“NRSRO”), such as Standard & Poor’s (“S&P”). For securities rated only by an NRSRO other than S&P, OppenheimerFunds, Inc. (the “Manager”) converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest rating is used. Unrated securities do not necessarily indicate low credit quality.

For the purposes of this Credit Allocation table, “investment-grade” securities are securities rated within the NRSROs’ four highest rating categories, which include AAA, AA, A and BBB. Securities not rated by an NRSRO may or may not be equivalent of investment grade. For further details, please consult the Fund’s prospectus or Statement of Additional Information.

9 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

FUND PERFORMANCE DISCUSSION

How has the Fund performed? Below is a discussion of the Fund’s performance during its fiscal year ended May 31, 2012, followed by a graphical comparison of the Fund’s performance to appropriate broad-based market indices.

Management’s Discussion of Fund Performance. In the reporting period ended May 31, 2012, Oppenheimer Rochester Short Term Municipal Fund benefited from a rally in the municipal market and produced an annual total return of 3.89% at net asset value (1.55% with sales charge).

The charts on pages 13 to 15 show the Fund’s performance. We encourage investors to remain focused on their personal financial objectives, and we believe that this Fund’s investments offer structural advantages that can help shareholders achieve their investment goals over the long term.

The Fund’s holdings in municipal bonds issued by utilities represented 20.8% of total assets at the end of this reporting period. As of May 31, 2012, this set of holdings included sewer utilities, with 9.9% of the Fund’s total assets, water utilities, with 5.6%, and electric utilities, with 5.3%. Our holdings in this sector consist of securities in the mid-range of the credit spectrum. The overall fundamentals in this sector also remained stable this reporting period, contributing to positive results.

General obligation debt backed by the full faith and taxing authority of state and local governments represented 20.5% of the Fund’s total assets as of May 31, 2012. The Fund’s holdings include variable-rate general obligation bonds issued by California, Illinois, Massachusetts, Michigan, New Jersey and the Commonwealth of Puerto Rico, all of which helped the sector make positive contributions to the Fund’s performance this reporting period. While many municipalities faced budget challenges this reporting period, elected officials consistently safeguarded the debt service payments on their general obligation bonds.

The Fund held 7.9% of total assets in the highways and commuter facilities sector at the end of this reporting period. The bonds held by this Fund are used to build and maintain roadways and highway amenities. The sector enhanced Fund performance this reporting period.

As of May 31, 2012, the Fund had invested 7.6% of total assets in the diversified financial services sector this reporting period, contributing to positive results.

Tax increment financing (TIF) bonds constituted 5.0% of the Fund’s total assets on May 31, 2012, and contributed positively to the Fund’s total return. Traditionally, this type of financing has been used for urban and suburban renewal projects. When tax collections

10 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

increase, driven either by an improving economy or inflation, the credit quality of these types of securities generally improves, which can lead to enhanced performance.

At the end of this reporting period, the Fund was invested in the government appropriations sector, representing 4.4% of the Fund’s total assets. These securities, which made a positive contribution to the Fund’s total return this reporting period, are backed by government-approved state funds that finance various municipal projects. These securities typically carry very favorable debt service reserves as well as the implicit pledge of the municipal issuers.

Oppenheimer Rochester Short Term Municipal Fund continued to favor the higher education sector this reporting period, which represented 4.1% of the Fund’s total assets and contributed positively to the Fund’s total return. The investment-grade bonds we hold in this sector have regularly provided high levels of tax-free income with what we believe to be far less credit risk than their external ratings would suggest.

Our approach to municipal bond investing is flexible and responsive to market conditions. Shareholders should note that market conditions during this reporting period did not affect the Fund’s overall investment objectives or cause it to pay any capital gain distributions. In closing, we believe that the Fund’s structure and sector composition as well as our time-tested strategies will continue to benefit long-term investors through interest rate and economic cycles.

Comparing the Fund’s Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each Class of shares of the Fund held until May 31, 2012. Performance is measured from the inception date of all Classes on December 6, 2010. The Fund’s performance reflects the deduction of the maximum initial sales charge on Class A shares, the applicable contingent deferred sales charge on Class C shares, and reinvestments of all dividends and capital gains distributions. Past performance cannot guarantee future results.

The Fund’s performance is compared to the performance of that of the Barclays Capital Municipal Bond Index, an unmanaged index of a broad range of investment-grade municipal bonds that is a measure of the general municipal bond market. The Fund’s performance is also compared to the Consumer Price Index, a non-securities index that measures changes in the inflation rate. Index performance reflects the reinvestment of dividends but does not consider the effect of capital gains or transaction costs, and none of the data in the graphs that follow shows the effect of taxes.

11 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

FUND PERFORMANCE DISCUSSION

The Fund’s performance reflects the effects of Fund business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the securities comprising the indices.

12 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individual’s investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 2.25% and for Class C shares, the 1% contingent deferred sales charge for the 1-year period. There is no sales charge for Class Y shares. See page 16 for further information.¹


1.		Prior to April 1, 2012, the maximum initial sales charge for Class A shares of the Fund was 3.50%.

13 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

FUND PERFORMANCE DISCUSSION

Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:

14 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:


1.		Prior to April 1, 2012, the maximum initial sales charge for Class A shares of the Fund was 3.50%.

15 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

NOTES

Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. Cumulative total returns are not annualized. The Fund’s total returns shown do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.

This report must be preceded or accompanied by the current prospectus of Oppenheimer Rochester Short Term Municipal Fund. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

The Fund’s investment strategy and focus can change over time. The mention of specific Fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

Class A shares of the Fund were first publicly offered on 12/6/10. Unless otherwise noted, Class A returns include the current maximum initial sales charge of 2.25%. Prior to April 1, 2012, the maximum initial sales charge for Class A shares of the Fund was 3.50%.

Class C shares of the Fund were first publicly offered on 12/6/10. Unless otherwise noted, Class C returns include the applicable 1% contingent deferred sales charge for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge.

Class Y shares of the Fund were first publicly offered on 12/6/10. Class Y shares are offered only to fee-based clients of dealers that have a special agreement with the Distributor, to certain institutional investors under a special agreement with the Distributor, and to present or former officers, directors, trustees or employees (and their eligible family members) of the Fund, the Manager, its affiliates, its parent company and the subsidiaries of its parent company, and retirement plans established for the benefit of such individuals. There is no sales charge for Class Y shares.

16 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

FUND EXPENSES

Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended May 31, 2012.

Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the “hypothetical” section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

17 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

FUND EXPENSES Continued


	Beginning		Ending		Expenses
	Account		Account		Paid During
	Value		Value		6 Months Ended
Actual	December 1, 2011		May 31, 2012		May 31, 2012

Class A	$	1,000.00	$	1,021.90	$	4.76
Class C		1,000.00		1,018.40		8.26
Class Y		1,000.00		1,023.60		3.19

Hypothetical
(5% return before expenses)
Class A		1,000.00		1,020.30		4.76
Class C		1,000.00		1,016.85		8.25
Class Y		1,000.00		1,021.85		3.19

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Those annualized expense ratios based on the 6-month period ended May 31, 2012 are as follows:


Class	Expense Ratios

Class A		0.94	%
Class C		1.63
Class Y		0.63

The expense ratios reflect voluntary waivers and/or reimbursements of expenses by the Fund’s Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus. The “Financial Highlights” tables in the Fund’s financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.

18 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS May 31, 2012


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

Municipal Bonds and Notes—96.9%
Alabama—4.1%
$	5,000	Auburn, AL GO		5.600	%		08/01/2019		06/30/2012	^A	$	5,021
	240,000	Bessemer, AL GO Warrants		6.000			02/01/2015		06/30/2012	^A		240,828
	870,000	Jefferson County, AL Limited Obligation School Warrant		5.250			02/01/2013		08/01/2012	^A		873,202
	720,000	Jefferson County, AL Limited Obligation School Warrant		5.250			01/01/2018		01/01/2014	^A		722,146
	375,000	Jefferson County, AL Limited Obligation School Warrant		5.250			01/01/2019		01/01/2014	^A		375,896
	490,000	Jefferson County, AL Limited Obligation School Warrant		5.500			02/15/2016		08/15/2012	^A		489,971
	145,000	Jefferson County, AL Limited Obligation School Warrant		5.500			01/01/2021		01/01/2014	^A		145,254
	220,000	Jefferson County, AL Limited Obligation School Warrant		5.500			01/01/2022		01/01/2014	^A		220,328
	55,000	Jefferson County, AL School Warrants		5.500			02/15/2020		02/15/2020			54,947
	1,040,000	Jefferson County, AL Sewer		5.250			02/01/2014		08/01/2012	^A		1,044,867
	340,000	Jefferson County, AL Sewer		5.250			02/01/2015		08/01/2012	^A		341,251
	340,000	Jefferson County, AL Sewer		5.250			02/01/2016		08/01/2012	^A		341,591

												4,855,302
Arizona—0.3%
	100,000	AZ COP		4.900			11/01/2016		06/30/2012	^A		100,367
	80,000	Mohave County, AZ IDA (Mohave Prison)		7.500			05/01/2019		11/27/2017	^B		93,195
	200,000	Yavapai County, AZ Unified School District No. 51 (Chino Valley Elementary)		4.875			07/01/2013		06/30/2012	^A		200,712

												394,274
California—16.1%
	50,000	Alameda, CA Corridor Transportation Authority		4.750			10/01/2019		06/30/2012	^A		50,116
	25,000	Antioch, CA Devel. Agency		4.700			09/01/2012		06/30/2012	^A		25,085
	35,000	Apple Valley, CA Improvement Bond Act 1915		6.900			09/02/2015		09/02/2012	^A		36,360
	25,000	Benicia, CA GO		4.600			08/01/2013		06/14/2012	^A		25,040
	150,000	CA Dept. of Transportation COP		5.250			03/01/2016		06/30/2012	^A		150,603
	1,000,000	CA Economic Recovery		4.000			07/01/2016		07/01/2012	^A		1,002,960
	10,000	CA GO		4.500			04/01/2013		06/30/2012	^A		10,035
	15,000	CA GO		4.500			02/01/2014		06/30/2012	^A		15,050
	5,000	CA GO		4.625			04/01/2014		06/30/2012	^A		5,017
	5,000	CA GO		4.750			02/01/2018		06/30/2012	^A		5,016
	45,000	CA GO		5.000			06/01/2012		06/01/2012			45,000
	10,000	CA GO		5.250			06/01/2015		12/01/2012	^A		10,202
	25,000	CA GO		5.250			10/01/2016		10/01/2012	^A		25,337
	50,000	CA GO		5.500			03/01/2013		06/30/2012	^A		50,218

19 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

California Continued
$	5,000	CA GO		5.500	%		04/01/2013		06/30/2012	^A	$	5,022
	35,000	CA GO		5.500			03/01/2014		06/30/2012	^A		35,149
	25,000	CA GO		5.500			06/01/2015		06/30/2012	^A		25,105
	15,000	CA GO		5.750			11/01/2017		11/01/2012	^A		15,314
	10,000	CA GO		6.000			08/01/2013		08/01/2012	^A		10,095
	150,000	CA HFA (Home Mtg.)		4.200			08/01/2016		08/01/2016			155,636
	200,000	CA Industry Public Facilities Authority		4.000			05/01/2016		06/30/2012	^A		201,176
	15,000	CA M-S-R Public Power Agency (San Juan)		6.125			07/01/2013		01/05/2013	^B		15,325
	25,000	CA Public Works		4.600			10/01/2013		06/30/2012	^A		25,084
	50,000	CA Public Works		4.750			10/01/2014		06/30/2012	^A		50,157
	40,000	CA Public Works (California Community Colleges)		4.600			12/01/2012		06/30/2012	^A		40,141
	25,000	CA Public Works (California Community Colleges)		4.625			12/01/2013		06/30/2012	^A		25,084
	25,000	CA Public Works (California Community Colleges)		4.750			10/01/2014		06/30/2012	^A		25,079
	15,000	CA Public Works (California Community Colleges)		4.750			12/01/2015		06/30/2012	^A		15,043
	25,000	CA Public Works (California Community Colleges)		4.750			12/01/2015		06/30/2012	^A		25,071
	75,000	CA Public Works (California Community Colleges)		5.250			12/01/2016		06/30/2012	^A		75,226
	100,000	CA Public Works (California Community Colleges)		5.250			09/01/2019		06/30/2012	^A		100,264
	250,000	CA Public Works (California State University)		5.000			09/01/2015		06/30/2012	^A		250,770
	150,000	CA Public Works (California State University)		5.250			10/01/2015		06/30/2012	^A		150,492
	50,000	CA Public Works (California State University)		5.500			09/01/2015		06/30/2012	^A		50,204
	25,000	CA Public Works (Dept. of Corrections)		5.500			06/01/2015		06/01/2015			26,202
	25,000	CA Public Works (Dept. of Corrections)		5.500			10/01/2019		06/30/2012	^A		25,071
	5,000	CA Public Works (Dept. of Food & Agriculture)		5.400			06/01/2013		06/16/2012	^A		5,020
	50,000	CA Public Works (Dept. of General Services)		4.600			03/01/2017		06/30/2012	^A		50,113
	100,000	CA Public Works (Dept. of Health Services)		5.200			11/01/2012		06/30/2012	^A		100,405
	25,000	CA Public Works (Dept. of Justice Building)		4.600			05/01/2013		06/30/2012	^A		25,086
	15,000	CA Public Works (Dept. of Veterans Affairs)		5.250			11/01/2013		06/30/2012	^A		15,058
	100,000	CA Public Works (Dept. of Youth Authority)		5.500			10/01/2017		06/30/2012	^A		100,285
	100,000	CA Public Works (Mission Valley)		4.400			03/01/2015		06/30/2012	^A		100,267
	75,000	CA Public Works (State Universities)		5.500			12/01/2018		06/30/2012	^A		75,214
	40,000	CA Public Works (Various Community Colleges)		5.625			03/01/2016		06/30/2012	^A		40,136
	550,000	CA Public Works (Various Community Colleges)		5.625			03/01/2019		06/30/2012	^A		551,623
	50,000	CA Public Works (Various State Universities)		5.250			12/01/2013		06/30/2012	^A		50,184
	30,000	CA Public Works (Various State Universities)		5.375			12/01/2019		06/30/2012	^A		30,082
	200,000	CA Statewide CDA		5.000			06/15/2013		06/15/2013			209,710

20 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

California Continued
$	25,000	CA Water Resource Devel. GO, Series J		4.100	%		08/01/2014		06/30/2012	^A	$	25,073
	35,000	CA Water Resource Devel. GO, Series K		4.750			11/01/2012		06/30/2012	^A		35,133
	25,000	CA Water Resource Devel. GO, Series K		4.750			11/01/2013		06/30/2012	^A		25,091
	20,000	CA Water Resource Devel. GO, Series L		4.500			08/01/2016		06/30/2012	^A		20,054
	5,000	CA Water Resource Devel. GO, Series L		4.500			08/01/2018		06/30/2012	^A		5,012
	50,000	CA Water Resource Devel. GO, Series L		4.800			08/01/2012		06/30/2012	^A		50,193
	50,000	CA Water Resource Devel. GO, Series L		4.800			08/01/2013		06/30/2012	^A		50,188
	10,000	CA Water Resource Devel. GO, Series L		4.800			08/01/2015		06/30/2012	^A		10,031
	25,000	CA Water Resource Devel. GO, Series M		4.900			10/01/2013		06/30/2012	^A		25,505
	30,000	CA Water Resource Devel. GO, Series N		5.500			06/01/2016		06/30/2012	^A		30,123
	35,000	CA Water Resource Devel. GO, Series P		5.800			06/01/2015		06/30/2012	^A		35,155
	40,000	CA Water Resource Devel. GO, Series Q		4.750			03/01/2018		06/30/2012	^A		40,131
	50,000	Chico, CA Public Financing Authority		4.700			04/01/2015		06/30/2012	^A		50,078
	100,000	Colton, CA Public Financing Authority (Electric Generation Facility)		4.500			04/01/2018		06/30/2012	^A		100,134
	25,000	Concord, CA Joint Powers Financing Authority (Concord Avenue Parking Structure)		4.750			03/01/2014		09/01/2012	^A		25,265
	15,000	Concord, CA Joint Powers Financing Authority (Concord Police Facilities)		5.250			08/01/2013		08/01/2013			15,359
	130,000	Dry Creek, CA Joint School District Community Facilities District No. 1		5.200			09/01/2014		09/01/2012	^A		131,418
	25,000	Duarte, CA COP (Hope National Medical Center)		5.000			04/01/2013		06/30/2012	^A		25,076
	125,000	Fontana, CA Redevel. Agency (Jurupa Hills)		5.500			10/01/2017		10/01/2012	^A		125,960
	30,000	Fresno, CA Joint Powers Financing Authority		4.300			08/01/2013		08/01/2012	^A		30,074
	20,000	Fresno, CA Joint Powers Financing Authority (Exhibit Hall Expansion)		5.000			09/01/2013		06/30/2012	^A		20,075
	750,000	Hesperia, CA Unified School District COP (Interim School Facility Funding)		2.100	¹		02/01/2028		06/07/2012	^A		750,000
	580,000	Imperial, CA PFA (Wastewater Facility)		5.000			10/15/2019		10/15/2019			665,109
	610,000	Imperial, CA PFA (Wastewater Facility)		5.000			10/15/2020		10/15/2020			698,596
	845,000	Imperial, CA PFA (Water Facility)		5.000			10/15/2019		10/15/2019			968,995
	885,000	Imperial, CA PFA (Water Facility)		5.000			10/15/2020		10/15/2020			1,013,537
	125,000	Inland Valley, CA Devel. Agency Tax Allocation		5.500			04/01/2014		04/01/2014			136,669
	90,000	Lancaster, CA Hsg. Authority (Brierwood Mobilehome Park)		4.800			04/01/2014		10/01/2012	^A		90,632
	1,000,000	Lee Lake, CA Water District Community Facilities District No. 3 Special Tax		5.750			09/01/2023		09/01/2013	^A		1,043,860
	105,000	Lincoln, CA Public Financing Authority		4.250			08/01/2017		06/30/2012	^A		105,153
	1,500,000	Long Beach, CA Bond Finance Authority Natural Gas		5.000			11/15/2015		11/15/2015			1,613,223
	100,000	Los Angeles, CA Building Authority		5.200			10/01/2012		06/30/2012	^A		100,406

21 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

California Continued
$	10,000	Los Angeles, CA Community Redevel. Agency (Police Emergency Command Control Communication System)		4.900	%		09/01/2013		06/30/2012	^A	$	10,027
	25,000	Los Angeles, CA Municipal Improvement Corp.		4.500			09/01/2012		06/30/2012	^A		25,088
	50,000	Los Angeles, CA Parking System		5.125			05/01/2016		11/01/2012	^A		50,764
	25,000	Los Angeles, CA State Building Authority		5.500			10/01/2016		06/30/2012	^A		25,071
	100,000	Mojave, CA Unified School District School Facilities Improvement District No. 1		5.250			08/01/2016		08/01/2012	^A		100,848
	70,000	Montebello, CA COP		5.300			11/01/2018		06/30/2012	^A		70,901
	200,000	Montebello, CA GO		4.850			06/21/2012		06/21/2012			200,134
	380,000	Moorpark, CA Redevel. Agency Tax Allocation		4.875			10/01/2018		06/30/2012	^A		380,467
	300,000	Ontario, CA Improvement Bond Act 1915 Assessment District No. 108		7.500			09/02/2020		09/02/2012	^A		305,013
	100,000	Pittsburgh, CA Unified School District COP		4.200			09/01/2012		06/30/2012	^A		100,224
	40,000	Rancho Cucamonga, CA Redevel. Agency (Rancho Redevel.)		5.000			09/01/2013		09/01/2013			41,464
	425,000	Richmond, CA Joint Powers Financing Authority Tax Allocations		4.700			09/01/2012		06/30/2012	^A		425,867
	25,000	Richmond, CA Joint Powers Financing Authority Tax Allocations		4.800			09/01/2013		06/30/2012	^A		25,045
	50,000	Richmond, CA Joint Powers Financing Authority Tax Allocations		5.500			09/01/2016		06/30/2012	^A		50,105
	300,000	Riverside County, CA Asset Leasing Corp. (Riverside County Hospital)		5.700			06/01/2016		06/30/2012	^A		304,044
	500,000	Riverside County, CA Redevel. Agency (215 Corridor Redevel.)		6.500			12/01/2021		12/01/2021			553,380
	100,000	Riverside County, CA Redevel. Agency (Casa Blanca Redevel.)		4.600			08/01/2013		06/30/2012	^A		100,147
	75,000	Riverside County, CA Redevel. Agency (Casa Blanca Redevel.)		4.700			08/01/2014		06/30/2012	^A		75,098
	265,000	Roseville, CA Natural Gas Finance Authority		5.000			02/15/2016		02/15/2016			283,736
	80,000	Sacramento, CA City Financing Authority (California EPA Building)		5.000			05/01/2013		06/30/2012	^A		80,079
	85,000	Sacramento, CA City Financing Authority (California EPA Building)		5.000			05/01/2014		06/30/2012	^A		85,084
	50,000	Sacramento, CA Redevel. Agency (Merged Downtown Redevel.)		4.950			11/01/2012		06/30/2012	^A		50,151
	250,000	Saddleback Valley, CA Unified School District		5.650			09/01/2017		06/30/2012	^A		250,985
	20,000	San Diego, CA Convention Center		5.250			04/01/2015		06/30/2012	^A		20,056
	50,000	San Diego, CA Convention Center Expansion Financing Authority		5.250			04/01/2013		06/30/2012	^A		50,152
	305,000	San Francisco, CA City & County Redevel. Financing Authority (Mission Bay North Redevel.)		4.500			08/01/2015		08/01/2015			319,256

22 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

California Continued
$	25,000	San Francisco, CA Ellis-O’Farrell Parking Corp.		4.700	%		04/01/2017		06/30/2012	^A	$	25,057
	50,000	Santa Ana, CA Community Redevel. Agency (South Main Street)		5.000			09/01/2015		09/01/2013	^A		51,326
	50,000	Santa Barbara, CA Redevel. Agency (Central City)		4.600			03/01/2014		06/30/2012	^A		50,116
	325,000	Santa Clara, CA Redevel. Agency Tax Allocation (Bayshore North)		5.250			06/01/2019		12/01/2012	^A		331,578
	100,000	Sante Fe Springs, CA Community Devel. Commission		4.600			09/01/2018		09/01/2012	^A		100,279
	50,000	Sante Fe Springs, CA Community Devel. Commission		4.600			09/01/2019		09/01/2012	^A		50,123
	105,000	Saugus, CA Union School District		4.000			09/01/2016		09/01/2012	^A		108,420
	15,000	Selma, CA Unified School District		4.700			06/01/2015		06/30/2012	^A		15,044
	530,000	Stockton, CA COP (Wastewater System)		5.125			09/01/2016		06/30/2012	^A		530,753
	25,000	Stockton, CA Public Financing Authority (Parking)		4.500			09/01/2016		09/01/2016			24,561
	75,000	Stockton, CA Unified School District		3.500			01/01/2014		01/01/2013	^A		75,650
	65,000	Temecula, CA Redevel. Agency		4.900			08/01/2016		06/30/2012	^A		65,127
	750,000	Vernon, CA Electric System		5.125			08/01/2021		08/01/2019	^A		843,308
	75,000	Walnut Creek, CA Public Facilities Financing Authority (Boundary Oak Municipal Golf Course)		5.200			08/15/2013		06/30/2012	^A		75,254
	25,000	Walnut, CA Public Financing Authority		5.375			09/01/2013		09/01/2012	^A		25,303
	450,000	West Contra Costa, CA Unified School District		5.000			02/01/2013		02/01/2013			460,197

												19,032,522
Colorado—0.4%
	30,000	Aurora, CO COP		4.375			04/01/2013		06/30/2012	^A		30,102
	100,000	Cordillera, CO Eagle County Metropolitan District		5.000			12/01/2019		12/01/2012	^A		101,211
	105,000	Larimer County, CO School District No. R-001 Poudre		7.000			12/15/2016		04/07/2015	^A		128,642
	235,000	Montrose County, CO Memorial Hospital		5.250			12/01/2017		06/30/2012	^A		235,562

												495,517
Connecticut—0.1%
	25,000	CT HFA		4.600			11/15/2017		06/21/2012	^A		25,061
	40,000	West Haven, CT GO		4.750			01/15/2019		06/30/2012	^A		40,064
	25,000	Winchester, CT GO		4.500			06/01/2019		06/30/2012	^A		25,312

												90,437

23 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

District of Columbia—0.6%
$	545,000	District of Columbia Tobacco Settlement Financing Corp.		6.250	%		05/15/2024		06/30/2012	^A	$	555,900
	120,000	Metropolitan Washington D.C. Airport Authority (Dulles Toll Road)		2.600	²		10/01/2015		10/01/2015			111,486

												667,386
Florida—7.6%
	50,000	Boca Raton, FL Community Redevel. Agency (Mizner Park)		4.600			03/01/2013		06/30/2012	^A		50,162
	100,000	Brevard County, FL Industrial Devel. Revenue (Tuff Florida Tech)		6.000			11/01/2019		11/01/2019			109,102
	250,000	Brevard County, FL Local Optional Fuel Tax		5.000			08/01/2017		08/01/2015	^A		267,675
	35,000	Broward County, FL Airport System (Passenger Facility)		5.125			10/01/2017		06/30/2012	^A		35,104
	65,000	Broward County, FL Airport System (Passenger Facility)		5.125			10/01/2018		06/30/2012	^A		65,211
	100,000	Dade County, FL GO (Seaport)		5.750			10/01/2015		06/30/2012	^A		100,437
	50,000	Englewood, FL Water District		4.750			10/01/2013		06/30/2012	^A		50,172
	100,000	Escambia County, FL Utilities Authority		6.250			01/01/2015		08/27/2014	^B		106,804
	300,000	FL Higher Educational Facilities Financial Authority (University of Tampa)		4.000			04/01/2014		04/01/2014			313,674
	65,000	FL Municipal Loan Council		5.250			11/01/2013		06/30/2012	^A		65,867
	35,000	FL Municipal Loan Council		5.250			11/01/2014		06/30/2012	^A		35,456
	150,000	FL Municipal Loan Council		5.250			12/01/2015		12/01/2013	^A		159,044
	225,000	FL Municipal Power Agency		3.501	¹		10/01/2013		10/01/2013			227,882
	50,000	FL Water Pollution Control		5.500			01/15/2015		06/30/2012	^A		50,211
	150,000	Fort Myers, FL Utility System		4.100			10/01/2017		10/01/2012	^A		151,236
	5,000	Fort Pierce, FL Utilities Authority		5.375			10/01/2015		06/30/2012	^A		5,018
	150,000	Indian River County, FL (Spring Training Facility)		5.250			04/01/2015		06/30/2012	^A		150,581
	200,000	Indian River County, FL Revenue (Spring Training Facility)		5.250			04/01/2017		06/30/2012	^A		200,774
	75,000	Jacksonville, FL Capital Improvement (Gator Bowl)		5.250			10/01/2017		06/30/2012	^A		75,266
	100,000	Jea, FL Revenue		3.750			10/01/2013		06/30/2012	^A		100,286
	25,000	Jea, FL Revenue		4.000			10/01/2014		06/30/2012	^A		25,074
	250,000	Miami, FL (Homeland Defense/Neighborhood)		4.800			01/01/2020		06/30/2012	^A		250,210
	200,000	Miami-Dade County, FL Aviation (Miami International Airport)		5.500			10/01/2016		06/30/2012	^A		201,734
	105,000	Miami-Dade County, FL School Board		4.500	¹		04/01/2020		06/30/2012	^A		111,060
	95,000	Miami-Dade County, FL Solid Waste		4.750			10/01/2018		06/30/2012	^A		95,222
	50,000	Miami-Dade County, FL Solid Waste		5.000			10/01/2018		06/30/2012	^A		50,178
	2,350,000	Miami-Dade County, FL Special Obligation, Series A		1.358	¹		04/01/2014		07/01/2012	^A		2,351,316

24 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

Florida Continued
$	1,520,000	Orlando, FL Community Redevel. Agency (Conroy Road District)		5.000	%		04/01/2022		04/01/2022		$	1,713,633
	25,000	Osceola County, FL Gas Tax		4.800			04/01/2013		06/30/2012	^A		25,080
	200,000	Osceola County, FL Infrastructure Sales Surtax		5.375			10/01/2017		10/01/2012	^A		203,444
	5,000	Palm Beach County, FL Health Facilities Authority (Jupiter Medical Center)		5.250			08/01/2013		06/30/2012	^A		5,016
	80,000	Punta Gorda, FL Utilities		5.250			01/01/2013		06/30/2012	^A		80,319
	50,000	Sebring, FL Water & Wastewater		5.250			01/01/2019		01/01/2013	^A		51,434
	360,000	South-Dade, FL Venture Community Devel. District		4.250			05/01/2020		05/01/2020			363,607
	75,000	Tallahassee, FL Health Facilities (Tallahassee Memorial Medical Center)		6.000			12/01/2015		06/30/2012	^A		75,344
	1,000,000	Village Center, FL Community Devel. District		5.250			10/01/2023		10/01/2013	^A		1,032,630

												8,955,263
Georgia—2.2%
	35,000	Colquitt County, GA Hospital Authority Anticipation Certificates		5.500			03/01/2016		09/01/2012	^A		35,422
	1,775,000	GA Main Street Natural Gas		5.000			03/15/2016		03/15/2016			1,903,120
	50,000	GA Main Street Natural Gas		5.125			09/15/2015		09/15/2015			53,803
	575,000	GA Private Colleges & University Authority (Mercer University)		5.000			10/01/2020		10/01/2020			645,685

												2,638,030
Hawaii—0.0%
	15,000	HI Dept. of Budget & Finance Special Purpose (Wilcox Memorial Hospital)		5.350			07/01/2018		06/30/2012	^A		15,032
Idaho—0.0%
	25,000	Mountain Home, ID Golf Course		5.000			01/01/2015		06/30/2012	^A		25,072
Illinois—6.5%
	500,000	Chicago, IL Board of Education		5.000			12/01/2015		12/01/2012	^A		511,015
	2,000,000	Chicago, IL Board of Education (School Reform)		3.720	²		12/01/2021		12/01/2021			1,465,920
	50,000	Chicago, IL Building Acquisition COP		5.400			01/01/2019		06/30/2012	^A		50,202
	400,000	Chicago, IL GO		5.125			01/01/2015		07/08/2014	^B		429,408
	350,000	Chicago, IL Midway Airport, Series B		5.000			01/01/2022		06/30/2012	^A		351,159
	75,000	Chicago, IL Midway Airport, Series B		5.375			01/01/2014		06/30/2012	^A		75,274
	140,000	Chicago, IL Midway Airport, Series B		5.375			01/01/2016		06/30/2012	^A		140,511
	25,000	Chicago, IL O’Hare International Airport		5.500			01/01/2019		06/30/2012	^A		25,088
	115,000	Cook County, IL Forest Preservation District		5.375			12/15/2015		06/30/2012	^A		115,467
	275,000	Cook County, IL GO		5.250			11/15/2015		11/15/2012	^A		280,998
	100,000	Elmwood Park, IL GO		4.700			12/01/2018		06/30/2012	^A		100,204
	315,000	IL Civic Center		5.000			12/15/2015		06/30/2012	^A		316,172
	50,000	IL Devel. Finance Authority Pollution Control (Amerencips)		5.500			03/01/2014		06/30/2012	^A		50,048

25 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

Illinois Continued
$	1,300,000	IL GO		2.000	%¹		10/01/2033		06/07/2012	^A	$	1,300,000
	60,000	IL GO		5.250			10/01/2015		10/01/2013	^A		63,323
	250,000	IL GO		5.375			07/01/2017		07/01/2012	^A		251,078
	110,000	IL Health Facilities Authority (University of Chicago Medical System)		5.375			08/15/2012		06/30/2012	^A		110,449
	45,000	IL Hsg. Devel. Authority (Homeowner Mtg.)		3.625			08/01/2016		08/01/2016			46,949
	50,000	IL Hsg. Devel. Authority (Homeowner Mtg.)		4.750			08/01/2017		08/01/2012	^A		50,218
	30,000	IL Metropolitan Pier & Exposition Authority (McCormick Place Exposition)		5.000			06/15/2021		06/30/2012	^A		30,383
	15,000	IL Sales Tax		5.375			06/15/2015		06/30/2012	^A		15,056
	75,000	IL Sales Tax		5.500			06/15/2014		06/30/2012	^A		75,299
	1,000,000	Lemont, IL GO		4.850			12/01/2016		06/30/2012	^A		1,003,650
	40,000	McHenry County, IL Conservation District		5.000			02/01/2014		06/30/2012	^A		40,151
	225,000	Riverdale, IL GO		4.500			01/01/2017		06/30/2012	^A		225,464
	605,000	Saint Clair County, IL School District No. 189 East Saint Louis		3.000			01/01/2016		01/01/2016			596,790

												7,720,276
Indiana—1.1%
	200,000	Clarksville, IN Redevel. Authority		4.550			08/01/2013		06/30/2012	^A		200,658
	40,000	Delaware County, IN Redevel. District		6.875			02/01/2018		06/30/2012	^A		40,099
	30,000	Fishers, IN Sewage Works		5.000			01/01/2019		06/30/2012	^A		30,110
	250,000	Hammond, IN Multi-School Building Corp.		5.000			01/15/2021		07/15/2013	^A		258,935
	40,000	IN Bond Bank (Conservancy District)		5.125			10/01/2022		10/01/2012	^A		40,594
	500,000	IN Finance Authority (Butler University)		5.000			02/01/2022		02/01/2022			568,110
	150,000	Manchester Township, IN High School Building		4.950			01/15/2015		06/30/2012	^A		150,039
	5,000	St. Joseph County, IN Hospital Authority (Memorial Health System)		4.900			08/15/2014		06/30/2012	^A		5,017

												1,293,562
Iowa—0.3%
	300,000	Des Moines, IA Public Parking System		6.000			06/01/2020		06/30/2012	^A		301,152
Kentucky—0.0%
	15,000	KY Area Devel. Districts (City of Ewing)		5.000			12/01/2014		06/30/2012	^A		15,046
	10,000	Owensboro, KY Water		4.600			09/15/2013		06/30/2012	^A		10,033
	20,000	Owensboro, KY Water		4.750			09/15/2015		06/30/2012	^A		20,068

												45,147
Louisiana—0.6%
	10,000	East Baton Rouge, LA Mtg. Finance Authority (Single Family Mtg.)		5.125			10/01/2018		06/30/2012	^A		10,022
	10,000	New Orleans, LA (Drain System)		5.000			12/01/2018		06/30/2012	^A		10,021
	25,000	New Orleans, LA Exhibit Hall Special Tax (Ernest N. Morial)		5.500			07/15/2018		06/30/2012	^A		25,044

26 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

Louisiana Continued
$	200,000	New Orleans, LA Sewage Service		5.375	%		06/01/2015		06/30/2012	^A	$	200,528
	400,000	New Orleans, LA Sewage Service		5.500			06/01/2017		06/30/2012	^A		401,120

												646,735
Maine—0.0%
	5,000	ME H&HEFA (Bridgton Hospital/Franklin Memorial Hospital/GINNE Obligated Group)		4.800			07/01/2014		06/30/2012	^A		5,016
	15,000	ME H&HEFA (Mid Coast Hospital/Community Partners Obligated Group)		5.600			07/01/2014		06/30/2012	^A		15,061

												20,077
Massachusetts—2.1%
	75,000	Athol & Royalston, MA Regional School District		4.600			07/01/2014		06/27/2012	^A		75,991
	10,000	Clinton, MA GO		4.750			03/15/2016		06/30/2012	^A		10,035
	10,000	Clinton, MA GO		4.750			03/15/2017		06/30/2012	^A		10,035
	10,000	Fall River, MA (State Qualified)		5.000			06/01/2015		06/30/2012	^A		10,092
	100,000	MA H&EFA (Harvard Pilgrim Health Care/Pilgrim Health Care Obligated Group)		5.000			07/01/2014		06/30/2012	^A		100,314
	1,600,000	MA Special Obligation		2.140	¹		01/01/2018		01/01/2018			1,624,160
	100,000	MA Special Obligation (Consolidated Loan)		3.766	¹		06/01/2017		06/01/2017			105,405
	20,000	MA Water Pollution Abatement Trust		4.750			02/01/2019		06/30/2012	^A		20,068
	20,000	MA Water Pollution Abatement Trust		4.750			02/01/2021		06/30/2012	^A		20,058
	495,000	MA Water Pollution Abatement Trust		5.250			02/01/2016		06/30/2012	^A		497,025
	65,000	Worcester, MA GO		5.000			07/01/2012		07/01/2012			65,256

												2,538,439
Michigan—12.5%
	2,000,000	Detroit, MI City School District		5.000			05/01/2021		05/01/2021			2,360,940
	345,000	Detroit, MI Downtown Devel. Authority		4.828	²		07/01/2016		07/01/2016			289,289
	635,000	Detroit, MI Downtown Devel. Authority		5.000			07/01/2018		07/01/2012	^A		634,975
	100,000	Detroit, MI GO		5.000			04/01/2017		06/30/2012	^A		100,147
	200,000	Detroit, MI GO		5.250			04/01/2013		06/30/2012	^A		200,512
	50,000	Detroit, MI GO		5.375			04/01/2014		06/30/2012	^A		50,057
	3,000,000	Detroit, MI Sewer Disposal System³		0.430	¹		07/01/2029		07/01/2012	^A		3,000,000
	2,170,000	Detroit, MI Water Supply System		2.700	¹		07/01/2014		07/01/2014			2,185,494
	1,905,000	Detroit, MI Water Supply System		2.700	¹		07/01/2014		07/01/2014			1,918,602
	465,000	Fairview, MI Area Schools		4.375			05/01/2013		11/01/2012	^A		471,189
	100,000	Hopewell Township, MI Special Assessment		4.000			05/01/2013		06/30/2012	^A		100,258
	2,000,000	MI Hospital Finance Authority (McLaren Health Care Corp.)		5.000			08/01/2020		08/01/2015	^A		2,183,940
	100,000	MI Hospital Finance Authority (OH/OUH/OHP Obligated Group)		5.500			11/01/2018		11/01/2013	^A		107,279

27 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

Michigan Continued
$	100,000	MI Hospital Finance Authority (OUH/OHP/ OHS Obligated Group)		6.000	%		04/01/2022		04/01/2013	^A	$	104,753
	10,000	MI Hsg. Devel. Authority (BGC-II Nonprofit Hsg. Corp.)		5.500			01/15/2018		06/30/2012	^A		10,025
	50,000	MI Municipal Bond Authority		5.550			11/01/2012		06/30/2012	^A		50,133
	525,000	MI Strategic Fund Limited Obligation (NSF International)		5.125			08/01/2019		08/01/2013	^A		537,007
	70,000	Mount Clemens, MI Hsg. Corp. (FHA Section 8), Series A		6.600			06/01/2013		06/30/2012	^A		70,328
	105,000	Taylor, MI GO		5.000			09/01/2014		09/01/2014			112,194
	165,000	Wayne County, MI Building Authority		5.250			06/01/2016		06/25/2012	^A		165,660
	50,000	Wayne County, MI Downriver Sewer Disposal		5.000			11/01/2012		11/01/2012			50,972
	105,000	Wayne County, MI Downriver Sewer Disposal		5.125			11/01/2015		11/01/2012	^A		107,050

												14,810,804
Minnesota—0.0%
	20,000	Plymouth, MN Health Facilities (Health Span Health System/North Memorial Medical Center Obligated Group)		6.250			06/01/2016		07/16/2014	^B		20,000
Mississippi—0.3%
	285,000	MS Devel. Bank (Gulfport Water & Sewer System)		5.250			07/01/2019		07/01/2015	^A		318,604
Missouri—0.7%
	5,000	MO Environmental Improvement & Energy Resources Authority		5.400			07/01/2015		06/30/2012	^A		5,020
	150,000	MO Environmental Improvement & Energy Resources Authority		7.200			07/01/2016		06/30/2012	^A		157,208
	10,000	MO H&EFA (FHS/FNH Obligated Group)		5.375			02/15/2014		06/30/2012	^A		10,035
	40,000	MO Monarch-Chesterfield Levee District		5.450			03/01/2014		06/30/2012	^A		40,149
	580,000	MO Monarch-Chesterfield Levee District		5.750			03/01/2019		06/30/2012	^A		582,111

												794,523
Nevada—0.7%
	250,000	Clark County, NV School District		5.000			06/15/2016		12/15/2015	^A		287,368
	225,000	North Las Vegas, NV GO		4.400			05/01/2013		06/30/2012	^A		225,727
	200,000	Reno, NV Capital Improvement		5.500			06/01/2016		06/30/2012	^A		200,598
	100,000	University of Nevada (Community College System)		5.000			07/01/2016		06/30/2012	^A		100,370

												814,063
New Jersey—9.6%
	150,000	Lacey, NJ Municipal Utilities Authority		5.000			12/01/2015		12/01/2013	^A		156,929
	1,000,000	Newark, NJ GO		2.400			02/20/2013		02/20/2013			1,002,090
	25,000	Newark, NJ GO		5.000			07/15/2018		07/15/2012	^A		25,090
	250,000	NJ EDA (School Facilities Construction)		2.067	¹		02/01/2018		02/01/2018			258,085

28 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

New Jersey Continued
$	85,000	NJ Educational Facilities Authority (University of Medicine and Dentistry of New Jersey)		6.000	%		12/01/2017		06/28/2017	^B	$	98,969
	100,000	NJ Health Care Facilities Financing Authority (Jersey City Medical Center)		4.500			02/01/2015		06/30/2012	^A		100,236
	250,000	NJ Higher Education Student Assistance Authority (Student Loans)		5.000			06/01/2014		06/01/2014			268,605
	310,000	NJ Hsg. & Mtg. Finance Agency, Series AA		5.250			04/01/2016		04/01/2016			337,237
	4,000,000	NJ Turnpike Authority		0.560	¹		01/01/2024		06/07/2012	^A		4,000,000
	5,000,000	NJ Turnpike Authority		0.930	¹		01/01/2024		01/01/2024			5,011,650
	75,000	Westfield, NJ GO		4.000			07/15/2014		07/15/2012	^A		75,301

												11,334,192
New York—3.6%
	300,000	Cambridge, NY Central School District		4.250			06/15/2017		06/15/2012	^A		300,480
	270,000	Chenango Forks, NY Central School District		5.000			06/15/2016		06/15/2012	^A		270,510
	115,000	Elizabethtown-Lewis, NY Central School District		3.375			06/15/2016		06/15/2012	^A		115,145
	50,000	Greenport, NY GO		4.800			09/15/2013		06/30/2012	^A		50,175
	2,000,000	L.I., NY Power Authority, Series I		0.380	¹		12/01/2029		06/07/2012	^A		2,000,000
	180,000	NY MTA, Series A		5.500			11/15/2019		11/15/2012	^A		183,938
	5,000	NYC GO		1.034	¹		08/01/2013		08/01/2013			5,019
	70,000	NYC GO		1.834	¹		08/01/2017		08/01/2017			71,894
	15,000	NYC GO		5.000			08/01/2015		06/30/2012	^A		15,057
	25,000	NYC GO		5.400			04/01/2013		10/01/2012	^A		25,450
	200,000	NYC IDA (New York Institute of Technology)		5.250			03/01/2018		03/01/2013	^A		203,816
	50,000	NYS DA (Brookdale Hospital Medical Center)		5.200			02/15/2016		06/30/2012	^A		50,191
	10,000	NYS DA (Mental Health Services Facilities)		5.125			02/15/2013		06/30/2012	^A		10,036
	20,000	NYS DA (Special Act School Districts)		6.000			07/01/2019		06/30/2012	^A		20,077
	100,000	NYS DA (Wyckoff Heights Medical Center)		5.200			02/15/2014		06/30/2012	^A		100,364
	50,000	NYS ERDA (LILCO)		5.150			03/01/2016		06/30/2012	^A		50,135
	50,000	NYS ERDA (LILCO)		5.150			03/01/2016		06/30/2012	^A		50,135
	25,000	NYS GO		1.734	¹		08/01/2015		08/01/2015			25,578
	15,000	NYS HFA (Hospital & Nursing Home)		5.150			11/01/2016		06/30/2012	^A		15,068
	10,000	Oneida County, NY IDA (Presbyterian Home for Central, NY)		5.000			03/01/2014		09/01/2012	^A		10,105
	40,000	Port Authority NY/NJ, 116th Series		4.500			10/01/2018		06/30/2012	^A		40,117
	50,000	Port Authority NY/NJ, 116th Series		5.250			10/01/2014		06/30/2012	^A		50,207
	50,000	Suffolk County, NY GO		4.250			06/15/2013		06/30/2012	^A		50,168
	60,000	Utica, NY IDA (Munson-Williams-Proctor Arts Institute)		5.500			07/15/2016		06/30/2012	^A		60,226
	40,000	Waterford, NY GO		6.000			09/01/2012		06/30/2012	^A		40,153
	405,000	Westchester County, NY Tobacco Asset Securitization Corp.		4.500			06/01/2021		07/05/2012	^B		403,813

												4,217,857

29 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

North Carolina—0.1%
$	20,000	Iredell County, NC GO		4.750	%		02/01/2014		06/30/2012	^A	$	20,274
	40,000	Iredell County, NC GO		4.750			02/01/2017		06/30/2012	^A		40,944

												61,218
Ohio—2.3%
	750,000	Akron, OH Sewer System		5.000			12/01/2015		12/01/2015			811,470
	150,000	Akron, OH Sewer System		5.000			12/01/2017		12/01/2017			165,354
	915,000	Akron, OH Waterworks		5.250			12/01/2017		12/01/2012	^A		937,756
	255,000	OH State University		2.000	¹		12/01/2026		06/07/2012	^A		255,000
	480,000	Solon, OH School District		5.500			12/01/2016		01/27/2015	^B		506,914
	40,000	Springfield, OH Various Purpose		4.800			12/01/2015		06/01/2012	^A		40,000
	25,000	Sylvania, OH City School District		5.250			12/01/2013		06/30/2012	^A		25,104

												2,741,598
Oklahoma—0.1%
	20,000	OK Agricultural & Mechanical Colleges (Oklahoma University Recreational Facilities)		4.800			07/01/2019		07/01/2012	^A		20,061
	100,000	OK State Capitol Improvement Authority		4.650			09/01/2022		09/01/2012	^A		100,604

												120,665
Oregon—0.4%
	250,000	OR Facilities Authority (Student Housing- Ashland)		2.000			07/01/2015		07/01/2015			250,855
	95,000	OR Hsg. & Community Services Dept. (Single Family Mtg.), Series Q		4.800			07/01/2016		06/30/2012	^A		95,238
	30,000	Portland, OR Gas Tax		4.800			06/01/2014		06/30/2012	^A		30,110
	100,000	Portland, OR Water System		4.500			10/01/2015		06/30/2012	^A		100,336

												476,539
Pennsylvania—3.0%
	250,000	Allegheny County, PA HEBA (Carlow University)		4.500			11/01/2016		11/01/2016			254,298
	200,000	Dauphin County, PA General Authority (PHH/PHS/PHMS Obligated Group)		5.250			06/01/2017		06/13/2016	^B		224,940
	75,000	Delaware River Port Authority PA/NJ		5.000			01/01/2013		06/30/2012	^A		75,278
	100,000	Delaware River Port Authority PA/NJ		5.000			01/01/2015		06/30/2012	^A		100,275
	100,000	PA EDFA (Waste Management/Waste Management of Pennsylvania Obligated Group)		2.750			09/01/2013		09/01/2013			102,294
	1,435,000	PA HEFA (St. Josephs University)		5.375			12/15/2016		06/15/2013	^A		1,501,541
	500,000	PA IDA (Economic Devel.)		5.500			07/01/2016		07/01/2012	^A		507,035
	275,000	Philadelphia, PA Authority for Industrial Devel. (Discovery Charter School)		4.000			04/01/2017		04/01/2017			276,793
	460,000	Philadelphia, PA School District		5.000			08/01/2018		08/01/2015	^A		501,198

												3,543,652

30 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

Rhode Island—1.3%
$	675,000	Cranston, RI GO		5.125	%		07/01/2013		07/01/2012	^A	$	677,626
	100,000	Providence, RI Public Building Authority, Series A		5.000			12/15/2017		12/15/2012	^A		101,046
	100,000	Providence, RI Public Building Authority, Series A		5.125			12/15/2014		06/30/2012	^A		100,217
	165,000	Providence, RI Public Building Authority, Series B		5.375			12/15/2016		06/30/2012	^A		165,358
	10,000	Providence, RI Public Building Authority, Series B		5.500			12/15/2015		06/30/2012	^A		10,024
	150,000	RI Health & Educational Building Corp. (RIH/TMH Obligated Group)		5.500			05/15/2016		06/30/2012	^A		150,452
	350,000	West Warwick, RI GO		4.750			03/01/2014		06/30/2012	^A		351,208

												1,555,931
South Carolina—2.1%
	285,000	Greenwood, SC Metropolitan District		5.000			04/01/2013		06/30/2012	^A		286,083
	305,000	Greenwood, SC Metropolitan District		5.000			04/01/2014		06/30/2012	^A		306,153
	320,000	Greenwood, SC Metropolitan District		5.000			04/01/2015		06/30/2012	^A		321,210
	340,000	Greenwood, SC Metropolitan District		5.000			04/01/2016		06/30/2012	^A		341,285
	360,000	Greenwood, SC Metropolitan District		5.000			04/01/2017		06/30/2012	^A		361,008
	380,000	Greenwood, SC Metropolitan District		5.000			04/01/2018		06/30/2012	^A		381,273
	400,000	Greenwood, SC Metropolitan District		5.000			04/01/2019		06/30/2012	^A		401,272
	60,000	Richland-Lexington, SC Airport		4.900			01/01/2018		06/30/2012	^A		60,210

												2,458,494
Tennessee—2.8%
	125,000	Clarksville, TN Natural Gas Acquisition Corp.		5.000			12/15/2016		12/15/2016			134,888
	675,000	Clarksville, TN Natural Gas Acquisition Corp.		5.000			12/15/2017		12/15/2017			728,224
	200,000	Lafollette, TN Electric System		4.900			03/01/2019		06/30/2012	^A		200,492
	10,000	Lenoir City, TN Electric System		5.000			06/01/2021		06/30/2012	^A		10,038
	60,000	TN Energy Acquisition Gas Corp.		5.000			09/01/2015		09/01/2015			65,113
	150,000	TN Energy Acquisition Gas Corp.		5.000			02/01/2017		02/01/2017			162,588
	1,330,000	TN Energy Acquisition Gas Corp.		5.250			09/01/2017		09/01/2017			1,483,216
	200,000	TN Energy Acquisition Gas Corp.		5.250			09/01/2018		09/01/2018			224,944
	200,000	TN Energy Acquisition Gas Corp.		5.250			09/01/2019		09/01/2019			223,866
	95,000	TN School Bond Authority (Higher Education Facilities)		4.000			05/01/2013		06/30/2012	^A		96,257

												3,329,626
Texas—3.6%
	215,000	Clifton, TX Higher Education Finance Corp. (Tejano Center Community Concerns)		7.750			02/15/2018		04/14/2016	^B		236,898
	200,000	College Station, TX Utility System		4.125			02/01/2013		06/15/2012	^A		200,308

31 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

Texas Continued
$	50,000	Corpus Christi, TX Business & Job Devel. Corp. (Seawall)		5.375	%		03/01/2014		06/30/2012	^A	$	50,167
	100,000	Edinburg, TX Consolidated Independent School District		5.000			02/15/2013		08/15/2012	^A		100,995
	10,000	Elgin, TX GO COP		4.500			07/15/2016		06/05/2012	^A		10,005
	45,000	Elgin, TX GO COP		4.500			07/15/2016		06/30/2012	^A		45,070
	20,000	Elgin, TX GO COP		4.500			07/15/2018		06/05/2012	^A		20,010
	95,000	Elgin, TX GO COP		4.500			07/15/2018		06/30/2012	^A		95,124
	15,000	Houston, TX Higher Education Finance Corp. (St. John’s School)		4.875			08/15/2015		06/30/2012	^A		15,052
	215,000	Newark, TX Cultural Education Facilities Finance Corp.		7.250			08/15/2021		03/24/2016	^A		228,805
	465,000	Northwest Harris County, TX Municipal Utility District No. 22		5.700			04/01/2017		06/30/2012	^A		466,990
	335,000	Silsbee, TX GO COP		4.500			05/01/2015		06/30/2012	^A		336,042
	105,000	South Shore Harbor, TX Municipal Utility District No. 3		5.250			09/01/2015		06/30/2012	^A		105,441
	40,000	TX GO		5.250			08/01/2012		06/30/2012	^A		40,167
	5,000	TX Lower Colorado River Authority		5.500			05/15/2019		06/30/2012	^A		5,019
	20,000	TX Lower Colorado River Authority		6.000			05/15/2013		06/30/2012	^A		20,091
	2,000,000	TX Municipal Gas Acquisition & Supply Corp.		5.625			12/15/2017		10/01/2015	^B		2,214,960
	100,000	TX Public Finance Authority (Southern University)		5.500			11/01/2017		06/30/2012	^A		100,133
	5,000	Weatherford, TX GO		4.500			03/01/2018		06/30/2012	^A		5,015

												4,296,292
U.S. Possessions—5.5%
	60,000	Guam Power Authority, Series A		5.250			10/01/2015		06/30/2012	^A		60,032
	200,000	Puerto Rico Commonwealth GO		4.750			12/01/2015		12/01/2012	^A		204,914
	500,000	Puerto Rico Commonwealth GO		5.250			07/01/2015		07/01/2015			556,380
	190,000	Puerto Rico Commonwealth GO		5.500			07/01/2016		07/01/2016			213,722
	220,000	Puerto Rico Commonwealth GO		5.500			07/01/2018		07/01/2018			249,649
	1,085,000	Puerto Rico Commonwealth GO		5.650			07/01/2015		07/01/2015			1,161,568
	205,000	Puerto Rico Commonwealth GO		6.500			07/01/2013		07/01/2013			216,773
	20,000	Puerto Rico Electric Power Authority, Series LL		5.500			07/01/2016		07/01/2016			22,761
	240,000	Puerto Rico Electric Power Authority, Series LL		5.500			07/01/2017		07/01/2017			276,454
	390,000	Puerto Rico Electric Power Authority, Series UU		0.953	¹		07/01/2017		07/01/2017			328,957
	155,000	Puerto Rico Government Devel. Bank		5.000			12/01/2013		12/01/2013			163,720
	310,000	Puerto Rico HFC		3.384	²		01/01/2014		01/01/2014			300,195
	50,000	Puerto Rico Highway & Transportation Authority		5.500			07/01/2014		07/01/2014			54,007
	50,000	Puerto Rico Highway & Transportation Authority		5.750			07/01/2019		07/01/2013	^A		52,488

32 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


								Effective
Principal								Maturity
Amount			Coupon			Maturity		(Unaudited)*			Value

U.S. Possessions Continued
$	10,000	Puerto Rico Highway & Transportation Authority, Series G		5.250	%		07/01/2019		07/01/2013	^A	$	10,541
	5,000	Puerto Rico Highway & Transportation Authority, Series G		5.250			07/01/2019		07/01/2013	^A		5,152
	160,000	Puerto Rico Industrial Devel. Company, Series B		5.375			07/01/2016		06/30/2012	^A		160,363
	50,000	Puerto Rico ITEMECF (InterAmerican University)		5.500			10/01/2014		10/01/2012	^A		50,767
	100,000	Puerto Rico Municipal Finance Agency, Series A		5.250			08/01/2018		08/01/2012	^A		100,468
	60,000	Puerto Rico Public Buildings Authority		5.000			07/01/2013		07/01/2013			62,189
	250,000	Puerto Rico Public Buildings Authority		5.750			07/01/2022		07/01/2016	^A		273,563
	2,000,000	Puerto Rico Sales Tax Financing Corp.		0.250	¹		08/01/2057		06/07/2012	^A		2,000,000
	25,000	V.I. Public Finance Authority, Series A		6.375			10/01/2019		06/30/2012	^A		25,084

												6,549,747
Utah—0.0%
	35,000	UT Water Finance Agency		5.375			10/01/2012		06/30/2012	^A		35,131
Vermont—1.4%
	50,000	Burlington, VT COP (Parking Facility)		4.625			12/01/2014		06/30/2012	^A		50,166
	50,000	Burlington, VT Electric		5.375			07/01/2013		07/01/2012	^A		50,167
	1,500,000	Burlington, VT GO		5.000			06/30/2012		06/30/2012			1,500,510

												1,600,843
Virginia—0.2%
	25,000	Fairfax County, VA Park Authority		4.400			07/15/2015		06/30/2012	^A		25,070
	160,000	Norfolk, VA Redevel. & Hsg. Authority (Merrimack Landing)		5.500			12/01/2013		06/30/2012	^A		160,538
	85,000	Pittsylvania County, VA GO		3.500			07/15/2013		06/30/2012	^A		85,240
	15,000	VA Northern Transportation District (Virginia Railway Express)		5.375			07/01/2014		06/30/2012	^A		15,060

												285,908
Washington—4.5%
	380,000	Edmonds, WA GO		4.800			12/01/2018		06/30/2012	^A		381,053
	2,000,000	Energy Northwest WA Electric		6.000			07/01/2016		07/01/2012	^A		2,009,440
	300,000	Grays Harbor County, WA Fire Protection District No. 2		4.800			12/01/2017		12/01/2012	^A		306,327
	25,000	Seattle, WA Drain & Wastewater		5.125			11/01/2021		06/30/2012	^A		25,094
	15,000	Seattle, WA Water System		5.000			11/01/2019		06/29/2012	^A		15,057
	150,000	Tacoma, WA Sewer		5.500			12/01/2015		06/01/2012	^A		150,000
	305,000	WA Health Care Facilities Authority (Group Health Cooperative of Puget Sound)		5.375			12/01/2013		06/30/2012	^A		308,651
	2,035,000	WA Tobacco Settlement Authority (TASC)		6.500			06/01/2026		06/01/2013	^A		2,123,177

												5,318,799

33 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued

Effective

Principal

Maturity

Amount

Coupon

Maturity

(Unaudited)*

Value

Wisconsin—0.2%

50,000

Beloit, WI Water System

4.375

11/01/2018

11/01/2013

51,918

100,000

Fond Du Lac, WI GO

4.125

03/01/2014

06/12/2012

100,121

60,000

Phillips, WI Water & Sewer

4.900

01/15/2013

06/30/2012

60,154

212,193

Total Investments, at Value (Cost $113,385,131)—96.9%

114,630,902

Other Assets Net of Liabilities—3.1%

3,719,571

Net Assets—100.0%

118,350,473


Footnotes to Statement of Investments

*		Call Date, Put Date or Average Life of Sinking Fund, if applicable, as detailed.

A.		Optional call date; corresponds to the most conservative yield calculation.

B.		Average life due to mandatory, or expected, sinking fund principal payments prior to maturity.

1.		Represents the current interest rate for a variable or increasing rate security.

2.		Zero coupon bond reflects effective yield on the date of purchase.

3.		Restricted security. The aggregate value of restricted securities as of May 31, 2012 was $3,000,000, which represents 2.53% of the Fund’s net assets. See Note 6 of the accompanying Notes. Information concerning restricted securities is as follows:

Acquisition

Security

Date

Cost

Value

Detroit, MI Sewer Disposal System

4/20/12

3,000,000

To simplify the listings of securities, abbreviations are used per the table below:


CDA		Communities Devel. Authority
COP		Certificates of Participation
DA		Dormitory Authority
EDA		Economic Devel. Authority
EDFA		Economic Devel. Finance Authority
ERDA		Energy Research and Devel. Authority
FHA		Federal Housing Agency/Authority
FHS		Freeman Health System
FNH		Freeman Neosho Hospital
GINNE		Goodwill Industries of Northern New England
GO		General Obligation
H&EFA		Health and Educational Facilities Authority
H&HEFA		Hospitals and Higher Education Facilities Authority
HEBA		Higher Education Building Authority
HEFA		Higher Education Facilities Authority
HFA		Housing Finance Agency
HFC		Housing Finance Corp.
IDA		Industrial Devel. Agency
ITEMECF		Industrial, Tourist, Educational, Medical and Environmental Community Facilities
L.I.		Long Island
LILCO		Long Island Lighting Corp.
M-S-R		Modesto Irrigation District of the City of Santa Clara and the City of Redding
MTA		Metropolitan Transportation Authority
NY/NJ		New York/New Jersey
NYC		New York City
NYS		New York State
OH		Oakwood Healthcare
OHP		Oakwood Health Promotions
OHS		Oakwood Healthcare System
OUH		Oakwood United Hospitals
PA/NJ		Pennsylvania/New Jersey
PFA		Public Financing Authority
PHH		Pinnacle Health Hospitals
PHMS		Pinnacle Health Medical Services
PHS		Pinnacle Health System
RIH		Rhode Island Hospital
TASC		Tobacco Settlement Asset-Backed Bonds
TMH		The Miriam Hospital
V.I.		United States Virgin Islands

See accompanying Notes to Financial Statements.

34 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF ASSETS AND LIABILITIES May 31, 2012


Assets
Investments, at value (cost $113,385,131)—see accompanying statement of investments	$	114,630,902
Cash		2,134,158
Receivables and other assets:
Interest		1,437,269
Investments sold		1,022,375
Shares of beneficial interest sold		949,210
Other		11,895

Total assets		120,185,809

Liabilities
Payables and other liabilities:
Investments purchased		1,361,791
Shares of beneficial interest redeemed		368,998
Dividends		43,091
Distribution and service plan fees		20,051
Shareholder communications		5,747
Transfer and shareholder servicing agent fees		3,332
Trustees’ compensation		258
Interest expense on borrowings		104
Other		31,964

Total liabilities		1,835,336

Net Assets	$	118,350,473


Composition of Net Assets
Par value of shares of beneficial interest	$	31,696
Additional paid-in capital		116,983,169
Accumulated net investment income		81,427
Accumulated net realized gain on investments		8,410
Net unrealized appreciation on investments		1,245,771

Net Assets	$	118,350,473

35 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF ASSETS AND LIABILITIES Continued


Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of $83,843,015 and 22,453,665 shares of beneficial interest outstanding)	$	3.73
Maximum offering price per share (net asset value plus sales charge of 2.25% of offering price)	$	3.82

Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $13,654,322 and 3,657,593 shares of beneficial interest outstanding)	$	3.73

Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of $20,853,136 and 5,584,742 shares of beneficial interest outstanding)	$	3.73

See accompanying Notes to Financial Statements.

36 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF OPERATIONS For the Year Ended May 31, 2012


Investment Income
Interest	$	1,855,031

Expenses
Management fees		303,691
Distribution and service plan fees:
Class A		86,766
Class C		71,196
Transfer and shareholder servicing agent fees:
Class A		12,742
Class C		5,091
Class Y		4,159
Shareholder communications:
Class A		16,751
Class C		9,202
Class Y		2,946
Legal, auditing and other professional fees		41,660
Borrowing fees		17,224
Administration service fees		1,500
Interest expense		823
Custodian fees and expenses		572
Trustees’ compensation		532
Other		9,874

Total expenses		584,729
Less waivers and reimbursements of expenses		(19,213	)

Net expenses		565,516

Net Investment Income		1,289,515

Realized and Unrealized Gain
Net realized gain on investments		16,793
Net change in unrealized appreciation/depreciation on investments		1,058,428

Net Increase in Net Assets Resulting from Operations	$	2,364,736

See accompanying Notes to Financial Statements.

37 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

STATEMENT OF CHANGES IN NET ASSETS


	Year			Period
	Ended			Ended
	May 31, 2012			May 31, 2011¹

Operations
Net investment income	$	1,289,515		$	192,289
Net realized gain (loss)		16,793			(4,015	)
Net change in unrealized appreciation/depreciation		1,058,428			187,343

Net increase in net assets resulting from operations		2,364,736			375,617

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A		(986,785	)		(110,333	)
Class C		(102,748	)		(5,692	)
Class Y		(199,099	)		(1,882	)

		(1,288,632	)		(117,907	)

Beneficial Interest Transactions
Net increase in net assets resulting from beneficial interest transactions:
Class A		58,086,350			24,613,947
Class C		11,735,753			1,769,480
Class Y		19,558,458			1,150,671

		89,380,561			27,534,098

Net Assets
Total increase		90,456,665			27,791,808
Beginning of period		27,893,808			102,000	²

End of period (including accumulated net investment income of $81,427 and $80,544, respectively)	$	118,350,473		$	27,893,808


1.		For the period from December 6, 2010 (commencement of operations) to May 31, 2011.

2.		Reflects the value of the Manager’s initial seed money invested on November 17, 2010.

See accompanying Notes to Financial Statements.

38 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

FINANCIAL HIGHLIGHTS


Class A Year Ended May 31,	2012			2011¹

Per Share Operating Data
Net asset value, beginning of period	$	3.67		$	3.63

Income from investment operations:
Net investment income²		.08			.04
Net realized and unrealized gain		.06			.02

Total from investment operations		.14			.06

Dividends and/or distributions to shareholders:
Dividends from net investment income		(.08	)		(.02	)

Net asset value, end of period	$	3.73		$	3.67


Total Return, at Net Asset Value³		3.89	%		1.76	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	83,843		$	24,945

Average net assets (in thousands)	$	45,683		$	15,185

Ratios to average net assets:⁴
Net investment income		2.18	%		2.42	%
Expenses excluding interest and fees from borrowings		0.84	%		1.38	%
Interest and fees from borrowings		0.03	%		0.02	%

Total expenses		0.87	%		1.40	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.87	%		0.85	%

Portfolio turnover rate		20	%		5	%


1.		For the period from December 6, 2010 (commencement of operations) to May 31, 2011.

2.		Per share amounts calculated based on the average shares outstanding during the period.

3.		Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4.		Annualized for periods less than one full year.

See accompanying Notes to Financial Statements.

39 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

FINANCIAL HIGHLIGHTS Continued


Class C Year Ended May 31,	2012			2011¹

Per Share Operating Data
Net asset value, beginning of period	$	3.67		$	3.63

Income from investment operations:
Net investment income²		.05			.03
Net realized and unrealized gain		.06			.02

Total from investment operations		.11			.05

Dividends and/or distributions to shareholders:
Dividends from net investment income		(.05	)		(.01	)

Net asset value, end of period	$	3.73		$	3.67


Total Return, at Net Asset Value³		3.07	%		1.45	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,654		$	1,794

Average net assets (in thousands)	$	7,145		$	1,401

Ratios to average net assets:⁴
Net investment income		1.41	%		1.72	%
Expenses excluding interest and fees from borrowings		1.78	%		2.42	%
Interest and fees from borrowings		0.03	%		0.02	%

Total expenses		1.81	%		2.44	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.62	%		1.60	%

Portfolio turnover rate		20	%		5	%


1.		For the period from December 6, 2010 (commencement of operations) to May 31, 2011.

2.		Per share amounts calculated based on the average shares outstanding during the period.

3.		Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4.		Annualized for periods less than one full year.

See accompanying Notes to Financial Statements.

40 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


Class Y Year Ended May 31,	2012			2011¹

Per Share Operating Data
Net asset value, beginning of period	$	3.67		$	3.63

Income from investment operations:
Net investment income²		.09			.05
Net realized and unrealized gain		.06			.01

Total from investment operations		.15			.06

Dividends and/or distributions to shareholders:
Dividends from net investment income		(.09	)		(.02	)

Net asset value, end of period	$	3.73		$	3.67


Total Return, at Net Asset Value³		4.12	%		1.83	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,853		$	1,155

Average net assets (in thousands)	$	8,280		$	210

Ratios to average net assets:⁴
Net investment income		2.35	%		2.66	%
Expenses excluding interest and fees from borrowings		0.67	%		2.13	%
Interest and fees from borrowings		0.03	%		0.02	%

Total expenses		0.70	%		2.15	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.63	%		0.60	%

Portfolio turnover rate		20	%		5	%


1.		For the period from December 6, 2010 (commencement of operations) to May 31, 2011.

2.		Per share amounts calculated based on the average shares outstanding during the period.

3.		Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4.		Annualized for periods less than one full year.

See accompanying Notes to Financial Statements.

41 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS

1. Significant Accounting Policies

Oppenheimer Rochester Short Term Municipal Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended as a non-diversified open-end management investment company. The investment objective of the Fund is to seek current interest income exempt from federal individual income tax. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The Fund offers Class A, Class C and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (“CDSC”). Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class Y shares. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class A and C shares have separate distribution and/or service plans under which they pay fees. Class Y shares do not pay such fees.

The following is a summary of significant accounting policies consistently followed by the Fund.

Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.

Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remain open for the three preceding fiscal reporting period ends.

The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes.

42 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

Net Unrealized

Appreciation

Based on Cost of

Undistributed

Accumulated

Securities and Other

Net Investment

Long-Term

Loss

Investments for Federal

Income

Gain

Carryforward

Income Tax Purposes

$131,299

1,805

—

1,245,696

Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.

Accordingly, the following amounts have been reclassified for May 31, 2012. Net assets of the Fund were unaffected by the reclassifications.


	Reduction to
	Accumulated Net
Increase	Realized Gain
to Paid-in Capital	on Investments¹

$4,368	$	4,368


1.		$4,368, including $929 of long-term capital gain, was distributed in connection with Fund share redemptions.

The tax character of distributions paid during the year ended May 31, 2012 and period ended May 31, 2011 was as follows:


	Year Ended		Period Ended
	May 31, 2012		May 31, 2011

Distributions paid from:
Exempt-interest dividends	$	1,288,621	$	117,907
Ordinary income		11		—

Total	$	1,288,632	$	117,907

The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of May 31, 2012 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss.


Federal tax cost of securities	$	113,385,206

Gross unrealized appreciation	$	1,309,752
Gross unrealized depreciation		(64,056	)

Net unrealized appreciation	$	1,245,696

43 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

1. Significant Accounting Policies Continued

Trustees’ Compensation. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Statement of Assets and Liabilities. Deferral of trustees’ fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually.

Investment Income. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.

Custodian Fees. “Custodian fees and expenses” in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdraft at a rate equal to the 1 Month LIBOR Rate plus 2.00%. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Indemnifications. The Fund’s organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

44 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2. Securities Valuation

The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the “Exchange”), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading.

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Securities traded on a registered U.S. securities exchange (including exchange-traded derivatives other than futures and futures options) are valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Fund’s assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day’s closing “bid” and “asked” prices, and if not, at the current day’s closing bid price. A security of a foreign issuer traded on a foreign exchange but not listed on a registered U.S. securities exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the third party pricing service used by the Manager, prior to the time when the Fund’s assets are valued. If the last sale price is unavailable, the security is valued at the most recent official closing price on the principal exchange on which it is traded. If the last sales price or official closing price for a foreign security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority); (1) using a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Corporate and government debt securities (of U.S. or foreign issuers) and municipal debt securities, event-linked bonds, loans, mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers who may use matrix pricing methods to determine the evaluated prices.

45 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

2. Securities Valuation Continued

Short-term money market type debt securities with a remaining maturity of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. Short-term debt securities with a remaining maturity in excess of sixty days are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


		Standard inputs generally considered
Security Type		by third-party pricing vendors

Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.

Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

If a market value or price cannot be determined for a security using the methodologies described above, or if, in the “good faith” opinion of the Manager, the market value or price obtained does not constitute a “readily available market quotation,” or a significant event has occurred that would materially affect the value of the security the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Fund’s Board or (ii) as determined in good faith by the Manager’s Valuation Committee. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

Classifications

Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Fund’s investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:

46 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

	1)		Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

	2)		Level 2—inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

	3)		Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of May 31, 2012 based on valuation input level:


					Level 3—
	Level 1—		Level 2—		Significant
	Unadjusted		Other Significant		Unobservable
	Quoted Prices		Observable Inputs		Inputs		Value

Assets Table
Investments, at Value:
Municipal Bonds and Notes
Alabama	$	—	$	4,855,302	$	—	$	4,855,302
Arizona		—		394,274		—		394,274
California		—		19,032,522		—		19,032,522
Colorado		—		495,517		—		495,517
Connecticut		—		90,437		—		90,437
District of Columbia		—		667,386		—		667,386
Florida		—		8,955,263		—		8,955,263
Georgia		—		2,638,030		—		2,638,030
Hawaii		—		15,032		—		15,032
Idaho		—		25,072		—		25,072
Illinois		—		7,720,276		—		7,720,276
Indiana		—		1,293,562		—		1,293,562
Iowa		—		301,152		—		301,152
Kentucky		—		45,147		—		45,147
Louisiana		—		646,735		—		646,735
Maine		—		20,077		—		20,077
Massachusetts		—		2,538,439		—		2,538,439
Michigan		—		14,810,804		—		14,810,804
Minnesota		—		20,000		—		20,000
Mississippi		—		318,604		—		318,604
Missouri		—		794,523		—		794,523
Nevada		—		814,063		—		814,063
New Jersey		—		11,334,192		—		11,334,192
New York		—		4,217,857		—		4,217,857
North Carolina		—		61,218		—		61,218
Ohio		—		2,741,598		—		2,741,598
Oklahoma		—		120,665		—		120,665
Oregon		—		476,539		—		476,539
Pennsylvania		—		3,543,652		—		3,543,652

47 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

2. Securities Valuation Continued


					Level 3—
	Level 1—		Level 2—		Significant
	Unadjusted		Other Significant		Unobservable
	Quoted Prices		Observable Inputs		Inputs		Value

Assets Table
Investments, at Value: Continued
Rhode Island	$	—	$	1,555,931	$	—	$	1,555,931
South Carolina		—		2,458,494		—		2,458,494
Tennessee		—		3,329,626		—		3,329,626
Texas		—		4,296,292		—		4,296,292
U.S. Possessions		—		6,549,747		—		6,549,747
Utah		—		35,131		—		35,131
Vermont		—		1,600,843		—		1,600,843
Virginia		—		285,908		—		285,908
Washington		—		5,318,799		—		5,318,799
Wisconsin		—		212,193		—		212,193

Total Assets	$	—	$	114,630,902	$	—	$	114,630,902

Currency contracts and forwards, if any, are reported at their unrealized appreciation/ depreciation at measurement date, which represents the change in the contract’s value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended May 31, 2012						Period Ended May 31, 2011^1,2
	Shares			Amount			Shares			Amount

Class A
Sold		29,859,861		$	110,667,288			7,145,622		$	25,973,489
Dividends and/or distributions reinvested		183,623			682,185			3,835			14,002
Redeemed		(14,390,317	)		(53,263,123	)		(376,507	)		(1,373,544	)

Net increase		15,653,167		$	58,086,350			6,772,950		$	24,613,947


Class C
Sold		4,120,844		$	15,272,213			752,998		$	2,734,787
Dividends and/or distributions reinvested		24,661			91,545			1,300			4,746
Redeemed		(976,999	)		(3,628,005	)		(265,486	)		(970,053	)

Net increase		3,168,506		$	11,735,753			488,812		$	1,769,480

48 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


	Year Ended May 31, 2012						Period Ended May 31, 2011^1,2
	Shares			Amount			Shares			Amount

Class Y
Sold		5,884,594		$	21,842,044			319,928		$	1,170,000
Dividends and/or distributions reinvested		48,617			180,562			215			787
Redeemed		(663,361	)		(2,464,148	)		(5,526	)		(20,116	)

Net increase		5,269,850		$	19,558,458			314,617		$	1,150,671


1.		For the period from December 6, 2010 (commencement of operations) to May 31, 2011.

2.		The Fund sold 27,548 shares of Class A at a value of $100,000 and 275 shares each of Class C and Class Y at a value of $1,000, respectively, to the Manager upon seeding of the Fund on November 17, 2010.

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended May 31, 2012, were as follows:


	Purchases		Sales

Investment securities	$	39,578,746	$	4,435,851

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $100 million	0.500	%
Next $150 million	0.450
Next $250 million	0.425
Over $500 million	0.400

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Transfer Agent Fees. OppenheimerFunds Services (“OFS”), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the year ended May 31, 2012, the Fund paid $18,911 to OFS for services to the Fund.

Additionally, Class Y shares are subject to minimum fees of $10,000 annually for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees.

Distribution and Service Plan (12b-1) Fees. Under its General Distributor’s Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the “Distributor”) acts as the Fund’s principal underwriter in the continuous public offering of the Fund’s classes of shares.

49 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

5. Fees and Other Transactions with Affiliates Continued

Service Plan for Class A Shares. The Fund has adopted a Service Plan (the “Plan”) for Class A shares under Rule 12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the daily net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal service and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Distribution and Service Plans for Class C Shares. The Fund has adopted Distribution and Service Plan (the “Plan”) for Class C shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for its services in connection with the distribution of those shares and servicing accounts. Under the Plan, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class C shares daily net assets. The Distributor also receives a service fee of 0.25% per year under each plan. If Class C plan is terminated by the Fund or by the shareholders, the Board of Trustees and its independent trustees must determine whether the Distributor shall be entitled to payment from the Fund of all or a portion of the service fee and/or asset-based sales charge in respect to shares sold prior to the effective date of such termination. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. The Distributor determines its uncompensated expenses under the Plan at calendar quarter ends. The Distributor’s aggregate uncompensated expenses under the Plans at March 31, 2012 were as follows:


Class C		$	40,260

Sales Charges. Front-end sales charges and contingent deferred sales charges (“CDSC”) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.

Class A

Class C

Class A

Contingent

Front-End

Deferred

Sales Charges

Retained by

Year Ended

Distributor

May 31, 2012

37,216

5,326

2,818

50 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to waive fees and/or reimburse the Fund for certain expenses so the that “Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses excluding interest and fees from borrowings” will not exceed 0.85% of average annual net assets for Class A shares, 1.60% of average annual net assets for Class C shares and 0.60% of average annual nets assets for Class Y shares. During the year ended May 31, 2012, the Manager reimbursed $13,560 and $5,653 for Class C and Class Y shares, respectively.

OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for Classes C and Y shares to 0.35% of average annual net assets per class; this limit also applied to Class A shares prior to August 1, 2011. Effective August 1, 2011, OFS has voluntarily agreed to limit its fees for Class A shares to 0.30% of average annual net assets of the class.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Restricted Securities

As of May 31, 2012, investments in securities included issues that are restricted. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. Securities that are restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments.

7. Borrowings

The Fund can borrow money from banks in amounts up to one third of its total assets (including the amount borrowed) less all liabilities and indebtedness other than borrowings. The Fund can use those borrowings for investment-related purposes such as purchasing portfolio securities. The Fund also may borrow to meet redemption obligations or for temporary and emergency purposes.

The purchase of securities with borrowed funds creates leverage in the Fund. The use of leverage will subject the Fund to greater costs than funds that do not borrow for leverage, and may also make the Fund’s share price more sensitive to interest changes. The interest on borrowed money is an expense that might reduce the Fund’s yield. Expenses incurred by the Fund with respect to interest on borrowings and commitment fees are disclosed separately or as other expenses on the Statement of Operations.

The Fund entered into a Revolving Credit and Security Agreement (the “Agreement”) with conduit lenders and Citibank N.A. which enables it to participate with certain other Oppenheimer funds in a committed, secured borrowing facility that permits borrowings of up to $2.0 billion, collectively, by the Oppenheimer Rochester Funds. To secure the loan, the Fund pledges investment securities in accordance with the terms of the Agreement. Securities held in collateralized accounts to cover these borrowings are noted in the Statement of Investments. Interest is charged to the Fund, based on its

51 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

7. Borrowings Continued

borrowings, at current commercial paper issuance rates. The Fund pays additional fees annually to its lender on its outstanding borrowings to manage and administer the facility. The Fund is also allocated its pro-rata share of an annual structuring fee and ongoing commitment fees both of which are based on the total facility size. Total fees and interest that are included in expenses on the Fund’s Statement of Operations related to its participation in the borrowing facility during the year ended May 31, 2012 equal 0.03% of the Fund’s average net assets on an annualized basis. The Fund has the right to prepay such loans and terminate its participation in the conduit loan facility at any time upon prior notice.

As of May 31, 2012, the Fund had no borrowings outstanding. Details of the borrowings for the year ended May 31, 2012 are as follows:


Average Daily Loan Balance	$	340,710
Average Daily Interest Rate		0.22	%
Fees Paid	$	26,128
Interest Paid	$	805

8. Reverse Repurchase Agreements

The Fund may engage in reverse repurchase agreements. A reverse repurchase agreement is the sale of one or more securities to a counterparty at an agreed-upon purchase price with the simultaneous agreement to repurchase those securities on a future date at a higher repurchase price. The repurchase price represents the repayment of the purchase price and interest accrued thereon over the term of the repurchase agreement. The cash received by the Fund in connection with a reverse repurchase agreement may be used for investment-related purposes such as purchasing portfolio securities or for other purposes such as those described in the preceding “Borrowings” note.

The Fund entered into a Committed Repurchase Transaction Facility (the “Facility”) with J.P. Morgan Securities LLC (the “counterparty’) which enables it to participate with certain other Oppenheimer funds in a committed reverse repurchase agreement facility that permits aggregate outstanding reverse repurchase agreements of up to $750 million, collectively. Interest is charged to the Fund on the purchase price of outstanding reverse repurchase agreements at current LIBOR rates plus an applicable spread. The Fund is also allocated its pro-rata share of an annual structuring fee based on the total Facility size and ongoing commitment fees based on the total unused amount of the Facility. The Fund retains the economic exposure to fluctuations in the value of securities subject to reverse repurchase agreements under the Facility and therefore these transactions are considered secured borrowings for financial reporting purposes. The Fund also continues to receive the economic benefit of interest payments received on securities subject to reverse repurchase agreements, in the form of a direct payment from the counterparty.

52 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

These payments are included in interest income on the Statement of Operations. Total fees and interest related to the Fund’s participation in the Facility during the year ended May 31, 2012 are included in expenses on the Fund’s Statement of Operations and equal to less than 0.005% of the Fund’s average net assets on an annualized basis.

The securities subject to reverse repurchase agreements under the Facility are valued on a daily basis. To the extent this value, after adjusting for certain margin requirements of the Facility, exceeds the cash proceeds received, the Fund may request the counterparty to return securities equal in margin value to this excess. To the extent that the cash proceeds received exceed the margin value of the securities subject to the transaction, the counterparty may request additional securities from the Fund. The Fund has the right to declare the first or fifteenth day of any calendar month as the repurchase date for any outstanding reverse repurchase agreement upon delivery of advanced notification and may also recall any security subject to such a transaction by substituting eligible securities of equal or greater margin value according to the Facility’s terms.

Securities subject to reverse repurchase agreements are separately noted in the Statement of Investments. The Fund executed no transactions under the Facility during the year ended May 31, 2012.

9. Pending Litigation

Since 2009, a number of class action, derivative and individual lawsuits have been pending in federal and state courts against OppenheimerFunds, Inc., the Fund’s investment advisor (the “Manager”), OppenheimerFunds Distributor, Inc., the Fund’s principal underwriter and distributor (the “Distributor”), and certain funds (but not including the Fund) advised by the Manager and distributed by the Distributor (the “Defendant Funds”). Several of these lawsuits also name as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raise claims under federal securities laws and various states’ securities, consumer protection and common law and allege, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds’ investment policies were not followed. The plaintiffs in these actions seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses.

Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against the Manager and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the “Ponzi” scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (“BLMIS”). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of the Manager and assert a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified

53 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

9. Pending Litigation Continued

damages, equitable relief and awards of attorneys’ fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the court’s order approving the settlement. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

On April 16, 2010, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark IV Funding Limited (“AAArdvark IV”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark IV. Plaintiffs allege breach of contract against the defendants and seek compensatory damages, costs and disbursements, including attorney fees. On July 15, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark Funding Limited (“AAArdvark I”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark I. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees. On November 9, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark XS Funding Limited (“AAArdvark XS”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees.

The Manager believes the lawsuits and appeals described above are without legal merit and, with the exception of actions it has settled, is defending against them vigorously. The Defendant Funds’ Boards of Trustees have also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs

54 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

that the Defendant Funds may bear in defending the suits might not be reimbursed by insurance, the Manager believes that these suits should not impair the ability of the Manager or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer mutual funds.

55 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Rochester Short Term Municipal Fund:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Rochester Short Term Municipal Fund, including the statement of investments, as of May 31, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets and the financial highlights for the year then ended and for the period December 6, 2010 (commencement of operations) to May 31, 2011. 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 the standards of the Public Company Accounting Oversight Board (United States). 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 May 31, 2012, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. 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 Oppenheimer Rochester Short Term Municipal Fund as of May 31, 2012, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for the year then ended and for the period December 6, 2010 (commencement of operations) to May 31, 2011, in conformity with U.S. generally accepted accounting principles.

KPMG llp

Denver, Colorado
July 18, 2012

56 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

CREDIT ALLOCATION Unaudited

This table provides further information regarding the “Unrated” securities category shown in the “Credit Allocation-Credit Rating Breakdown” table located earlier in this report. The third column below titled “Unrated by a NRSRO; Internally Rated by the Manager” shows the credit allocation of Unrated securities as determined by the Fund’s investment adviser, OppenheimerFunds, Inc. (the “Manager”). These internally rated securities are not rated by any nationally recognized statistical rating organization (NRSRO), such as Standard & Poor’s.

The Manager determines the credit allocation of these securities using its own credit analysis to assign ratings using a rating scale or categories similar to that used by S&P. The Manager is not required to, and does not attempt to, employ the same credit analysis process, procedures or methodologies used by S&P or any other NRSRO in assigning a credit rating to an Unrated security. There can be no assurance, nor is it intended, that the Manager’s credit analysis process is consistent or comparable with the credit analysis process that would be used by S&P or any other NRSRO if it were to rate the same security. Securities rated investment-grade or above by the Manager may or may not be the equivalent to an investment grade or above rating assigned by an NRSRO. More information about the Manager’s internal credit analysis process for Unrated (or internally-rated) securities and securities ratings is contained in the Fund’s Prospectus and Statement of Additional Information.

The second column below titled “NRSRO-Rated” shows the ratings by nationally recognized statistical rating organizations (NRSROs), such as Standard & Poor’s. For securities rated by an NRSRO other than S&P, the Manager converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest rating is used.

The credit allocations below are as of May 31, 2012 and are subject to change. The percentages are based on total assets and the market value of the Fund’s securities as of May 31, 2012 and are subject to change; market value does not include cash. AAA, AA, A, and BBB are investment-grade ratings.


				Unrated by
				a NRSRO;
				Internally Rated by
	NRSRO-Rated			the Manager			Total

AAA		1.1	%		0.1	%		1.2	%
AA		39.4			0.2			39.6
A		40.2			4.1			44.3
BBB		14.3			0.6			14.9
BB or lower		0.0			0.0			0.0

Total		95.0	%		5.0	%		100.0	%

57 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2012, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2011.

None of the dividends paid by the Fund during the fiscal year ended May 31, 2012 are eligible for the corporate dividend-received deduction. 100% of the dividends were derived from interest on municipal bonds and are not subject to federal income taxes. To the extent a shareholder is subject to any state or local tax laws, some or all of the dividends received may be taxable.

The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance.

58 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund’s Form N-Q filings are available on the SEC’s website at www.sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Householding—Delivery of Shareholder Documents

This is to inform you about OppenheimerFunds’ “householding” policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the fund’s prospectus (or, if available, the fund’s summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.

Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.

59 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen
INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Brian F. Wruble, Chairman of the Board of Trustees and Trustee (since 2007) Age: 69		Chairman Emeritus and Non-Voting Trustee of The Jackson Laboratory (non-profit) (since August 2011); Director of Special Value Opportunities Fund, LLC (registered investment company) (affiliate of the Manager’s parent company) (since September 2004); Member of Zurich Financial Investment Management Advisory Council (insurance) (since 2004); Treasurer (since 2007) and Trustee of the Institute for Advanced Study (non-profit educational institute) (since May 1992); Chairman (August 2007-July 2011) and Trustee (August 1991-July 2011) of the Board of Trustees of The Jackson Laboratory (non-profit); General Partner of Odyssey Partners, L.P. (hedge fund) (September 1995-December 2007); Special Limited Partner of Odyssey Investment Partners, LLC (private equity investment) (January 1999-September 2004). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Wruble has served on the Boards of certain Oppenheimer funds since April 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

David K. Downes, Trustee (since 2007) Age: 72		Director of THL Credit Inc. (since June 2009); Independent Chairman GSK Employee Benefit Trust (since April 2006); Trustee of Employee Trusts (since January 2006); Chief Executive Officer and Board Member of Community Capital Management (investment management company) (since January 2004); President of The Community Reinvestment Act Qualified Investment Fund (investment management company) (since 2004); Director of Internet Capital Group (information technology company) (since October 2003); Director of Correctnet (January 2006-2007); Independent Chairman of the Board of Trustees of Quaker Investment Trust (registered investment company) (2004-2007); Chief Operating Officer and Chief Financial Officer of Lincoln National Investment Companies, Inc. (subsidiary of Lincoln National Corporation, a publicly traded company) and Delaware Investments U.S., Inc. (investment management subsidiary of Lincoln National Corporation) (1993-2003); President, Chief Executive Officer and Trustee of Delaware Investment Family of Funds (1993-2003); President and Board Member of Lincoln National Convertible Securities Funds, Inc. and the Lincoln National Income Funds, TDC (1993-2003); Chairman and Chief Executive Officer of Retirement Financial Services, Inc. (registered transfer agent and investment adviser and subsidiary of Delaware Investments U.S., Inc.) (1993-2003); President and Chief Executive Officer of Delaware Service Company, Inc. (1995-2003); Chief Administrative Officer, Chief Financial Officer, Vice Chairman and Director of Equitable Capital Management Corporation (investment subsidiary of Equitable Life Assurance Society) (1985-1992); Corporate Controller of Merrill Lynch Company (financial services holding company) (1977-1985); held the following positions at the Colonial Penn Group, Inc. (insurance company): Corporate Budget Director (1974-1977), Assistant Treasurer (1972-1974) and Director of Corporate Taxes (1969-1972); held the following positions at Price Waterhouse Company (financial services firm): Tax Manager (1967-1969), Tax Senior (1965-1967) and Staff Accountant (1963-1965); United States Marine Corps (1957-1959). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Downes has served on the Boards of certain Oppenheimer funds since December 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

60 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen
Matthew P. Fink, Trustee (since 2007) Age: 71		Trustee of the Committee for Economic Development (policy research foundation) (2005-2011); Director of ICI Education Foundation (education foundation) (October 1991-August 2006); President of the Investment Company Institute (trade association) (October 1991-June 2004); Director of ICI Mutual Insurance Company (insurance company) (October 1991-June 2004); Author of The Rise of Mutual Funds:
		An Insider’s View published by Oxford University Press (second edition 2010). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Fink has served on the Boards of certain Oppenheimer funds since January 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Phillip A. Griffiths, Trustee (since 2007) Age: 73		Fellow of the Carnegie Corporation (since 2007); Member of the National Academy of Sciences (since 1979); Council on Foreign Relations (since 2002); Foreign Associate of Third World Academy of Sciences (since 2002); Chair of Science Initiative Group (since 1999); Member of the American Philosophical Society (since 1996); Trustee of Woodward Academy (since 1983); Director of GSI Lumonics Inc. (precision technology products company) (2001-2010); Senior Advisor of The Andrew W. Mellon Foundation (2001-2010); Distinguished Presidential Fellow for International Affairs of the National Academy of Science (2002-2010); Director of the Institute for Advanced Study (1991-2004); Director of Bankers Trust New York Corporation (1994-1999); Provost at Duke University (1983-1991). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Griffiths has served on the Boards of certain Oppenheimer funds since June 1999, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Mary F. Miller, Trustee (since 2007) Age: 69		Trustee of International House (not-for-profit) (since June 2007); Trustee of the American Symphony Orchestra (not-for-profit) (October 1998-November 2011); and Senior Vice President and General Auditor of American Express Company (financial services company) (July 1998-February 2003). Oversees 58 portfolios in the OppenheimerFunds complex. Ms. Miller has served on the Boards of certain Oppenheimer funds since August 2004, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Joel W. Motley, Trustee (since 2007) Age: 60		Director of Southern Africa Legal Services Foundation (since March 2012); Board Member of Pulitzer Center for Crisis Reporting (non-profit journalism) (since December 2010); Managing Director of Public Capital Advisors, LLC (privately-held financial advisor) (since January 2006); Managing Director of Carmona Motley, Inc. (privately-held financial advisor) (since January 2002); Director of Columbia Equity Financial Corp. (privately-held financial advisor) (2002-2007); Managing Director of Carmona Motley Hoffman Inc. (privately-held financial advisor) (January 1998-December 2001); Member of the Finance and Budget Committee of the Council on Foreign Relations, Chairman of the Investment Committee of the Episcopal Church of America, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley. Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Motley has served on the Boards of certain Oppenheimer funds since October 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

61 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

TRUSTEES AND OFFICERS Unaudited / Continued


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen
Mary Ann Tynan, Trustee (since 2007) Age: 66		Director and Secretary of the Appalachian Mountain Club (non-profit outdoor organization) (since January 2012); Director of Opera House Arts (non-profit arts organization) (since October 2011); Independent Director of the ICI Board of Governors (since October 2011); Vice Chair of Board of Trustees of Brigham and Women’s/Faulkner Hospitals (non-profit hospital) (since 2000); Chair of Board of Directors of Faulkner Hospital (non-profit hospital) (since 1990); Member of Audit and Compliance Committee of Partners Health Care System (non-profit) (since 2004); Board of Trustees of Middlesex School (educational institution) (since 1994); Board of Directors of Idealswork, Inc. (financial services provider) (since 2003); Partner, Senior Vice President and Director of Regulatory Affairs of Wellington Management Company, LLP (global investment manager) (1976-2002); Vice President and Corporate Secretary, John Hancock Advisers, Inc. (mutual fund investment adviser) (1970-1976). Oversees 58 portfolios in the OppenheimerFunds complex. Ms. Tynan has served on the Boards of certain Oppenheimer funds since October 2008, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Joseph M. Wikler, Trustee (since 2007) Age: 71		Director of C-TASC (bio-statistics services) (2007-2012); formerly, Director of the following medical device companies: Medintec (1992-2011) and Cathco (1996-2011); Member of the Investment Committee of the Associated Jewish Charities of Baltimore (since 1994); Director of Lakes Environmental Association (environmental protection organization) (1996-2008); Director of Fortis/Hartford mutual funds (1994-December 2001). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Wikler has served on the Boards of certain Oppenheimer funds since August 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Peter I. Wold, Trustee (since 2007) Age: 64		Director of Arch Coal, Inc. (since 2010); Director and Chairman of Wyoming Enhanced Oil Recovery Institute Commission (enhanced oil recovery study) (since 2004); President of Wold Oil Properties, Inc. (oil and gas exploration and production company) (since 1994); Vice President of American Talc Company, Inc. (talc mining and milling) (since 1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979); Director and Chairman of the Denver Branch of the Federal Reserve Bank of Kansas City (1993-1999); and Director of PacifiCorp. (electric utility) (1995-1999). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Wold has served on the Boards of certain Oppenheimer funds since August 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

INTERESTED TRUSTEE AND OFFICER		The address of Mr. Glavin is Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008. Mr. Glavin serves as a Trustee for an indefinite term, or until his resignation, retirement, death or removal and as an Officer for an indefinite term, or until his resignation, retirement, death or removal. Mr. Glavin is an Interested Trustee due to his positions with OppenheimerFunds, Inc. and its affiliates.

William F. Glavin, Jr., President and Principal Executive Officer and Trustee (since 2009) Age: 53		Chairman of the Manager (since December 2009); Chief Executive Officer and Director of the Manager (since January 2009); President of the Manager (since May 2009); Director of Oppenheimer Acquisition Corp. (“OAC”) (the Manager’s parent holding company) (since June 2009); Executive Vice President (March 2006-February 2009) and Chief Operating Officer (July 2007-February 2009) of

62 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen
William F. Glavin, Jr., Continued		Massachusetts Mutual Life Insurance Company (OAC’s parent company); Director (May 2004-March 2006) and Chief Operating Officer and Chief Compliance Officer (May 2004-January 2005), President (January 2005-March 2006) and Chief Executive Officer (June 2005-March 2006) of Babson Capital Management LLC; Director (March 2005-March 2006), President (May 2003-March 2006) and Chief Compliance Officer (July 2005-March 2006) of Babson Capital Securities, Inc. (a broker-dealer); President (May 2003-March 2006) of Babson Investment Company, Inc.; Director (May 2004-August 2006) of Babson Capital Europe Limited; Director (May 2004-October 2006) of Babson Capital Guernsey Limited; Director (May 2004-March 2006) of Babson Capital Management LLC; Non-Executive Director (March 2005-March 2007) of Baring Asset Management Limited; Director (February 2005-June 2006) Baring Pension Trustees Limited; Director and Treasurer (December 2003-November 2006) of Charter Oak Capital Management, Inc.; Director (May 2006-September 2006) of C.M. Benefit Insurance Company; Director (May 2008-June 2009) and Executive Vice President (June 2007-July 2009) of C.M. Life Insurance Company; President (March 2006-May 2007) of MassMutual Assignment Company; Director (January 2005-December 2006), Deputy Chairman (March 2005-December 2006) and President (February 2005- March 2005) of MassMutual Holdings (Bermuda) Limited; Director (May 2008- June 2009) and Executive Vice President (June 2007-July 2009) of MML Bay State Life Insurance Company; Chief Executive Officer and President (April 2007- January 2009) of MML Distributors, LLC; and Chairman (March 2006-December 2008) and Chief Executive Officer (May 2007-December 2008) of MML Investors Services, Inc. Oversees 63 portfolios as a Trustee/Director and 95 portfolios as an officer in the OppenheimerFunds complex.

OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Mr. Gabinet and Ms. Nasta, Two World Financial Center, 225 Liberty Street, New York, New York 10281-1008, for Messrs. Vandehey and Wixted, 6803 S. Tucson Way, Centennial, Colorado 80112-3924, for Messrs. Loughran, Cottier, Willis, DeMitry, Camarella, and Stein, 350 Linden Oaks, Rochester, New York 14625. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Daniel G. Loughran, Vice President (since 2007) Age: 48		Senior Vice President of the Manager (since July 2007); Vice President of the Manager (April 2001-June 2007) and a Portfolio Manager with the Manager (1999-2001). Team leader, a Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Scott S. Cottier, Vice President (since 2007) Age: 40		Vice President of the Manager (since September 2002). Portfolio Manager and trader at Victory Capital Management (1999-2002). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Troy E. Willis, Vice President (since 2007) Age: 39		Vice President of the Manager (since July 2009); Assistant Vice President of the Manager (July 2005-June 2009). Portfolio Manager of the Manager (2002- 2005). Corporate Attorney for Southern Resource Group (1999-2003). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Mark R. DeMitry, Vice President (since 2008) Age: 36		Vice President of the Manager (since July 2009); Associate Portfolio Manager of the Fund (September 2006- June 2009). Research Analyst of the Manager (June 2003-September 2006) and a Credit Analyst of the Manager (July 2001- May 2003). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

63 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

TRUSTEES AND OFFICERS Unaudited / Continued


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen
Michael L. Camarella, Vice President (since 2008) Age: 36		Vice President of the Manager (since January 2011); Assistant Vice President of the Manager (July 2009-January 2011). Research Analyst of the Manager (April 2006-December 2007) and a Credit Analyst of the Manager (June 2003-March 2006). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Richard A. Stein, Vice President (since 2007) Age: 54		Director of the Rochester Credit Analysis team (since March 2004); Senior Vice President of the Manager (since May 2011) and a Vice President of the Manager (1997-May 2011); headed Rochester’s Credit Analysis team (since 1993).

Arthur S. Gabinet, Secretary and Chief Legal Officer (since 2011) Age: 54		Executive Vice President (since May 2010) and General Counsel (since January 2011) of the Manager; General Counsel of the Distributor (since January 2011); General Counsel of Centennial Asset Management Corporation (since January 2011); Executive Vice President and General Counsel of HarbourView Asset Management Corporation (since January 2011); Assistant Secretary (since January 2011) and Director (since January 2011) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (since January 2011); Director of Oppenheimer Real Asset Management, Inc. (since January 2011); Executive Vice President and General Counsel of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since January 2011); Executive Vice President and General Counsel of OFI Private Investments, Inc. (since January 2011); Vice President of OppenheimerFunds Legacy Program (since January 2011); Executive Vice President and General Counsel of OFI Institutional Asset Management, Inc. (since January 2011); General Counsel, Asset Management of the Manager (May 2010-December 2010); Principal, The Vanguard Group (November 2005-April 2010); District Administrator, U.S. Securities and Exchange Commission (January 2003-October 2005). An officer of 95 portfolios in the OppenheimerFunds complex.

Christina M. Nasta, Vice President and Chief Business Officer (since 2011) Age: 39		Senior Vice President of the Manager (since July 2010); Vice President of the Manager (since January 2003); Vice President of OppenheimerFunds Distributor, Inc. (since January 2003). An officer of 95 portfolios in the OppenheimerFunds complex.

Mark S. Vandehey, Vice President and Chief Compliance Officer (since 2007) Age: 61		Senior Vice President and Chief Compliance Officer of the Manager (since March 2004); Chief Compliance Officer of OppenheimerFunds Distributor, Inc., Centennial Asset Management and Shareholder Services, Inc. (since March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and Shareholder Services, Inc. (since June 1983). An officer of 95 portfolios in the OppenheimerFunds complex.

Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer (since 2007) Age: 52		Senior Vice President of the Manager (since March 1999); Treasurer of the Manager and the following: HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management, Inc. and Oppenheimer Partnership Holdings, Inc. (March 1999-June 2008), OFI Private Investments, Inc. (March 2000-June 2008), OppenheimerFunds International Ltd. and OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since June 2003); Treasurer and Chief Financial Officer of OFI Trust Company (trust company subsidiary of the Manager) (since May 2000); Assistant Treasurer of OAC (March 1999-June 2008). An officer of 95 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge upon request, by calling 1.800.CALL OPP (225.5677).

64 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND


Manager		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent		OppenheimerFunds Services

Independent Registered Public Accounting Firm		KPMG llp

Legal Counsel		Kramer Levin Naftalis & Frankel LLP

65 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

PRIVACY POLICY NOTICE

As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.

Information Sources

We obtain nonpublic personal information about our shareholders from the following sources:

•		Applications or other forms

•		When you create a user ID and password for online account access

•		When you enroll in eDocs Direct, our electronic document delivery service

•		Your transactions with us, our affiliates or others

•		A software program on our website, often referred to as a “cookie,” which indicates which parts of our site you’ve visited

•		When you set up challenge questions to reset your password online

If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.

We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.

If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.

We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.

Protection of Information

We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.

Disclosure of Information

We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to “opt in” or “opt out” of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.

Right of Refusal

We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or “opt out” of such disclosure.

66 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

Internet Security and Encryption

In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website.

As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.

We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.

•		All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds’ server. It transmits information in an encrypted and scrambled format.

•		Encryption is achieved through an electronic scrambling technology that uses a “key” to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data.

•		You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser.

Other Security Measures

We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.

How You Can Help

You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.

Who We Are

This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds Distributor, Inc., the trustee of OppenheimerFunds Individual Retirement Accounts (IRAs) and the custodian of the OppenheimerFunds 403(b)(7) tax sheltered custodial accounts. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security number—whether or not you remain a shareholder of our funds. This notice was last updated January 16, 2004. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).

67 | OPPENHEIMER ROCHESTER SHORT TERM MUNICIPAL FUND

Item 2. Code of Ethics.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.

Item 3. Audit Committee Financial Expert.

The Board of Trustees of the registrant has determined that David Downes, the Board’s Audit Committee Chairman, is an audit committee financial expert and that Mr. Downes is “independent” for purposes of this Item 3.

Item 4. Principal Accountant Fees and Services.

(a)

Audit Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $26,000 in fiscal 2012 and $26,000 in fiscal 2011.

(b)

Audit-Related Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $2,619 in fiscal 2012 and no such fees in fiscal 2011.

The principal accountant for the audit of the registrant’s annual financial statements billed $402,806 in fiscal 2012 and no such fees in fiscal 2011 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: internal control reviews, professional services for GIPs attestation procedures, and compliance procedures.

(c)

Tax Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $2,400 in fiscal 2012 and $2,150 in fiscal 2011.

The principal accountant for the audit of the registrant’s annual financial statements billed $190,051 in fiscal 2012 and no such fees in fiscal 2011 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: tax compliance, tax planning and tax advice. Tax compliance generally involves preparation of original and amended tax returns, claims for a refund and tax payment-

planning services. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.

(d)

All Other Fees

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees during the last two fiscal years.

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees during the last two fiscal years to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such fees would include the cost to the principal accountant of attending audit committee meetings and consultations regarding the registrant’s retirement plan with respect to its trustees.

(e)		(1) During its regularly scheduled periodic meetings, the registrant’s audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant.

		The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting.

		Under applicable laws, pre-approval of non-audit services maybe waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to it principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit.

		(2) 100%

(f)		Not applicable as less than 50%.

(g)		The principal accountant for the audit of the registrant’s annual financial statements billed $597,876 in fiscal 2012 and $2,150 in fiscal 2011 to the registrant and the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934.

(h)

The registrant’s audit committee of the board of trustees has considered whether 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. No such services were rendered.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments.

a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

The Fund’s Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the Respective Boards

The Fund’s Governance Committee (the “Committee”) will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The Committee may consider recommendations by business and personal contacts of current Board members and by executive search firms which the Committee may engage from time

to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds’ investment manager and its affiliates in making the selection.

2.		The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual’s background, skills, and experience; whether the individual is an “interested person” as defined in the Investment Company Act of 1940; and whether the individual would be deemed an “audit committee financial expert” within the meaning of applicable SEC rules. The Committee also considers whether the individual’s background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder.

3.		The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following:

	•		the name, address, and business, educational, and/or other pertinent background of the person being recommended;

	•		a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940;

	•		any other information that the Funds would be required to include in a proxy statement concerning the person if he or she was nominated; and

	•		the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that person held Fund shares.

		The recommendation also can include any additional information which the person submitting it believes would assist the Committee in evaluating the recommendation.

4.		Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Funds’ investment adviser) would be deemed an “interested person” under the Investment Company Act of 1940. In addition, certain other relationships with Massachusetts Mutual Life Insurance Company or its subsidiaries, with registered broker-dealers, or with the Funds’ outside legal counsel may cause a person to be deemed an “interested person.”

5.		Before the Committee decides to nominate an individual as a trustee, Committee members and other directors customarily interview the individual in person. In addition, the individual

customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving as a trustee of a registered investment company.

Item 11. Controls and Procedures.

Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 5/31/2012, the registrant’s principal executive officer and principal financial officer found the registrant’s disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

There have been no changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)		(1) Exhibit attached hereto.

		(2) Exhibits attached hereto.

		(3) Not applicable.

(b)		Exhibit attached hereto.

SIGNATURES

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.

Oppenheimer Rochester Short Term Municipal Fund


By:		/s/ William F. Glavin, Jr.
		William F. Glavin, Jr.
		Principal Executive Officer

Date:		7/10/2012

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/ William F. Glavin, Jr.
		William F. Glavin, Jr.
		Principal Executive Officer

Date:		7/10/2012

By:		/s/ Brian W. Wixted
		Brian W. Wixted
		Principal Financial Officer

Date:		7/10/2012

Oppenheimer Rochester Short Term Municipal Fund Inactive N-CSRCertified annual shareholder report (management investment company)