Oppenheimer Government Cash Reserves N-CSRS Certified semi-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 811-5582

Oppenheimer Cash Reserves

(Exact name of registrant as specified in charter)

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

Robert G. Zack, Esq.
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: July 31

Date of reporting period: 01/31/2011

Item 1. Reports to Stockholders.

TOP HOLDINGS AND ALLOCATIONS

6 | OPPENHEIMER CASH RESERVES

NOTES

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

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

Investors should consider the Fund’s investment objectives, risks, expenses and other charges carefully before investing. The Fund’s prospectus and, if available, the Fund’s summary prospectus contain this and other information about the Fund, and may be obtained by asking your financial advisor, calling us at 1.800.525.7048 or visiting our website at www.oppenheimerfunds.com. Read the prospectus and, if available, the summary prospectus carefully before investing.

7 | OPPENHEIMER CASH RESERVES

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 January 31, 2011.

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.

8 | OPPENHEIMER CASH RESERVES

	Beginning		Ending		Expenses
	Account		Account		Paid During
	Value		Value		6 Months Ended
	August 1, 2010		January 31, 2011		January 31, 2011
Actual
Class A	$	1,000.00	$	1,000.10	$	1.72
Class B		1,000.00		1,000.10		1.77
Class C		1,000.00		1,000.10		1.72
Class N		1,000.00		1,000.10		1.72
Hypothetical (5% return before expenses)
Class A		1,000.00		1,023.49		1.74
Class B		1,000.00		1,023.44		1.79
Class C		1,000.00		1,023.49		1.74
Class N		1,000.00		1,023.49		1.74

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Those annualized expense ratios based on the 6-month period ended January 31, 2011 are as follows:

Class	Expense Ratios
Class A		0.34	%
Class B		0.35
Class C		0.34
Class N		0.34

The expense ratios reflect voluntary waivers or reimbursements of expenses by the Fund’s Manager, Transfer Agent and Distributor. 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. 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.

9 | OPPENHEIMER CASH RESERVES

STATEMENT OF INVESTMENTS January 31, 2011 / Unaudited

	Maturity		Final Legal		Principal
	Date*		Maturity Date**		Amount		Value
Certificates of Deposit—23.4%
Yankee Certificates of Deposit—23.4%
Bank of Montreal, Chicago, 0.21%		2/11/11		2/11/11	$	22,000,000	$	22,000,000
Barclays Bank plc, New York, 0.453%1		4/19/11		7/19/11		30,000,000		30,000,000
BNP Paribas, New York:
0.50%		6/30/11		6/30/11		9,000,000		9,000,000
0.50%		7/5/11		7/5/11		23,000,000		23,000,000
Nordea Bank Finland plc, New York, 0.30%		4/15/11		4/15/11		19,000,000		19,000,000
Rabobank Nederland NV, New York:
0.304%1		4/28/11		7/29/11		15,000,000		15,000,000
0.331%1		2/14/11		5/12/11		12,000,000		12,000,000
0.36%1		2/25/11		6/27/11		32,000,000		32,000,000
Royal Bank of Canada, New York:
0.35%1		2/1/11		11/10/11		22,500,000		22,500,000
0.37%1		2/1/11		8/16/11		27,000,000		27,000,000
Societe Generale, New York:
0.30%		3/2/11		3/2/11		8,000,000		8,000,000
0.335%		2/2/11		2/2/11		16,000,000		16,000,002
Svenska Handelsbanken, New York:
0.28%		3/15/11		3/15/11		21,600,000		21,599,496
0.29%		2/22/11		2/22/11		20,000,000		20,000,000
Total Certificates of Deposit (Cost $277,099,498)								277,099,498
Direct Bank Obligations—18.8%
Barclays US Funding LLC:
0.30%		3/1/11		3/1/11		22,000,000		21,994,867
0.32%		3/2/11		3/2/11		8,000,000		7,997,938
Commonwealth Bank of Australia:
0.265%2		2/9/11		2/9/11		21,600,000		21,598,728
0.28%2		4/27/11		4/27/11		1,800,000		1,798,810
0.30%2		3/21/11		3/21/11		35,000,000		34,986,000
Credit Agricole North America, Inc., 0.26%		2/16/11		2/16/11		27,700,000		27,696,999
Danske Corp., 0.20%2		2/3/11		2/3/11		4,500,000		4,499,950
ING (US) Funding LLC, 0.25%		2/10/11		2/10/11		25,000,000		24,998,438
Nordea North America, Inc.:
0.29%		3/15/11		3/15/11		14,200,000		14,195,196
0.29%		3/21/11		3/21/11		20,000,000		19,992,267
0.36%		7/26/11		7/26/11		5,000,000		4,991,250
Royal Bank of Canada, 5.65%		7/20/11		7/20/11		6,000,000		6,146,856

10 | OPPENHEIMER CASH RESERVES

	Maturity		Final Legal		Principal
	Date*		Maturity Date**		Amount		Value
Direct Bank Obligations Continued
Societe Generale North America, Inc.:
0.28%		2/18/11		2/18/11	$	15,000,000	$	14,998,017
0.28%		2/23/11		2/23/11		3,000,000		2,999,487
Svenska Handelsbanken, Inc., Series S, 0.32%		4/4/11		4/4/11		13,076,000		13,068,794
Total Direct Bank Obligations (Cost $221,963,597)								221,963,597
Short-Term Notes—48.0%
Capital Markets—1.9%
BNP Paribas Finance, Inc.:
0.39%		3/23/11		3/23/11		2,000,000		1,998,917
0.46%		6/17/11		6/17/11		20,000,000		19,965,244
								21,964,161
Electric Utilities—2.8%
Electricite De France, 0.27%2		2/28/11		2/28/11		33,200,000		33,193,277
Leasing & Factoring—5.1%
Toyota Motor Credit Corp.:
0.33%		4/5/11		4/5/11		34,500,000		34,480,076
0.33%		4/6/11		4/6/11		16,000,000		15,990,613
0.35%		4/12/11		4/12/11		10,250,000		10,243,024
								60,713,713
Municipal—14.3%
Berks Cnty. Industrial Development Revenue Bonds, Lebanon Valley Mall Project, Series 96B, 0.39%1		2/7/11		2/7/11		3,060,000		3,060,000
Capital One Funding Corp. Nts., Series 2000B, 0.31%1		2/7/11		2/7/11		4,815,000		4,815,000
Carenet Health Systems & Service, Inc. Nts., Series 1999, 0.63%1		2/7/11		2/7/11		4,350,000		4,350,000
Carroll Cnty., KY Environmental Facilities Revenue Bonds, Kentucky Utilities Co. Project, Series 2004A, 0.37%1		2/7/11		2/7/11		10,000,000		10,000,000
Carroll Cnty., KY Solid Waste Disposal Revenue Bonds, North American Stainless Project, Series 2006, 0.35%1		2/7/11		2/7/11		4,000,000		4,000,000
Easton, MD Bonds, William Hill Manor Facility, Series 2009B, 0.38%1		2/7/11		2/7/11		4,925,000		4,925,000
Glendale, AZ Industrial Development Authority Bonds, Thunderbird, The Garvin School, Series 2005A, 0.30%1		2/7/11		2/7/11		3,450,000		3,450,000

11 | OPPENHEIMER CASH RESERVES

STATEMENT OF INVESTMENTS Unaudited / Continued

	Maturity		Final Legal		Principal
	Date*		Maturity Date**		Amount		Value
Municipal Continued
Glendale, AZ Industrial Development Authority Bonds, Thunderbird, The Garvin School, Series 2005B, 0.30%1		2/7/11		2/7/11	$	2,982,000	$	2,982,000
Hanover Cnty., VA Economic Development Authority Revenue Bonds, Bon Secours Health System, Inc., Series 08D-2, 0.28%1		2/7/11		2/7/11		8,800,000		8,800,000
Hillsborough Cnty., FL Industrial Development Authority Revenue Bonds, Tampa Metro Area YMCA Project, Series 2000, 0.37%1		2/7/11		2/7/11		10,200,000		10,200,000
IN Health Facilities Financing Authority Hospital Revenue Bonds, Deaconess Hospital Obligation Project, Series 2004B, 0.25%1		2/7/11		2/7/11		19,200,000		19,200,000
Intrepid Museum Foundation Revenue Bonds, Series 2006, 0.29%1		2/7/11		2/7/11		7,080,000		7,080,000
Las Vegas, NV Economic Development Revenue Bonds, Keep Memory Alive Project, 0.31%1		2/7/11		2/7/11		4,155,000		4,155,000
Maricopa Cnty., AZ Industrial Development Bonds, Valley of the Sun YMCA, Series 2008, 0.35%1		2/7/11		2/7/11		7,700,000		7,700,000
MO Health & Educational Facilities Authority Bonds, Deaconess Long-Term Care of Missouri, Series 1996B, 0.33%1		2/7/11		2/7/11		4,595,000		4,595,000
Mountain Agency, Inc. (The) Securities, Series 2003, 0.41%1		2/7/11		2/7/11		10,635,000		10,635,000
MS Business Finance Corp. Revenue Bonds, Olin Corp. Project, Series 2005, 0.34%1		2/7/11		2/7/11		1,600,000		1,600,000
National Geographic School Publishing, Inc. Nts., Series 2006, 0.32%1		2/7/11		2/7/11		4,100,000		4,100,000
Newport News, VA Economic Development Bonds, Newport News Shipbuilding Project, Series A, 0.39%1		2/7/11		2/7/11		3,480,000		3,480,000
Oakland University Board of Trustees General Revenue Refunding Bonds, Series 2008, 0.29%1		2/7/11		2/7/11		15,000,000		15,000,000
Oneida Cnty., NY Industrial Development Agency, Mohawk Valley Network, Series 2006F, 0.34%1		2/7/11		2/7/11		4,870,000		4,870,000
PA Economic Development Finance Authority, John W. Gleim Jr., Inc. Project, Series 2009B1, 0.33%1		2/7/11		2/7/11		1,100,000		1,100,000
Polk Cnty., FL Industrial Development Authority Revenue Bonds, Watson Clinic, Series 1999, 0.52%1		2/7/11		2/7/11		2,350,000		2,350,000

12 | OPPENHEIMER CASH RESERVES

	Maturity		Final Legal		Principal
	Date*		Maturity Date**		Amount		Value
Municipal Continued
Port Grays Harbor, WA Industrial Development Corp., Murphy Corp. Project, Series 2007, 0.29%1		2/7/11		2/7/11	$	5,000,000	$	5,000,000
Ridgewood Associates Bonds, Series 2005, 0.39%1		2/7/11		2/7/11		3,530,000		3,530,000
San Antonio, TX Special Facilities Bonds, Cessna Aircraft Project, Series 1995, 0.56%1		2/7/11		2/7/11		2,100,000		2,100,000
Savanna, IL Industrial Development Revenue Bonds, Metform Corp., Series 1994A, 0.32%1		2/7/11		2/7/11		4,300,000		4,300,000
Tallahassee Orthopedic Center LC Bonds, Series 2004, 0.34%1		2/7/11		2/7/11		4,475,000		4,475,000
Tennis For Charity, Inc. Bonds, Series 2004, 0.28%1		2/7/11		2/7/11		2,215,000		2,215,000
Tuscaloosa Cnty., AL Industrial Development Authority Gulf Opportunity Zone Bonds, Hunt Refining Project, Series 2008B, 0.32%1		2/7/11		2/7/11		2,000,000		2,000,000
WA Economic Development Finance Authority Industrial Development Revenue Bonds, Canam Steel Corp. Project, Series 2000D, 0.56%1		2/7/11		2/7/11		3,400,000		3,400,000
								169,467,000
Receivables Finance—13.0%
Chariot Funding LLC, 0.23%2		2/14/11		2/14/11		21,500,000		21,498,214
Falcon Asset Securitization Co. LLC:
0.27%2		2/1/11		2/1/11		18,000,000		18,000,000
0.27%2		2/2/11		2/2/11		20,000,000		19,999,850
Mont Blanc Capital Corp.:
0.27%2		2/17/11		2/17/11		18,000,000		17,997,840
0.27%2		2/18/11		2/18/11		16,000,000		15,997,960
Old Line Funding Corp., 0.27%2		2/3/11		2/3/11		20,900,000		20,899,687
Thunder Bay Funding LLC:
0.19%2		2/1/11		2/1/11		23,201,000		23,201,000
0.27%2		2/7/11		2/7/11		10,000,000		9,999,550
0.27%2		2/22/11		2/22/11		5,800,000		5,799,087
								153,393,188
Special Purpose Financial—10.9%
Crown Point Capital Co.:
0.37%		3/2/11		3/2/11		4,300,000		4,298,718
0.37%		3/3/11		3/3/11		24,900,000		24,892,323
0.37%		3/8/11		3/8/11		6,800,000		6,797,554
FCAR Owner Trust I:
0.31%		2/1/11		2/1/11		5,000,000		5,000,000
0.31%		2/4/11		2/4/11		30,000,000		29,999,225

13 | OPPENHEIMER CASH RESERVES

STATEMENT OF INVESTMENTS Unaudited / Continued

	Maturity		Final Legal		Principal
	Date*		Maturity Date**		Amount			Value
Special Purpose Financial Continued
Lexington Parker Capital Co., LLC:
0.37%2		3/4/11		3/4/11	$	21,000,000		$	20,993,309
0.37%2		3/7/11		3/7/11		22,000,000			21,992,312
0.37%2		3/9/11		3/9/11		15,000,000			14,994,450
									128,967,891
Total Short-Term Notes (Cost $567,699,230)									567,699,230
U.S. Government Agencies—3.9%
Federal Home Loan Bank:
0.40%		11/28/11		11/28/11		19,000,000			19,000,000
0.45%		12/16/11		12/16/11		14,000,000			14,000,000
0.50%		12/28/11		12/28/11		13,000,000			13,000,000
Total U.S. Government Agencies (Cost $46,000,000)									46,000,000
U.S. Government Obligations—6.3%
U.S. Treasury Nts.:
0.875%		2/28/11		2/28/11		13,000,000			13,004,891
0.875%		3/31/11		3/31/11		6,000,000			6,004,164
0.875%		4/30/11		4/30/11		6,500,000			6,505,337
1.125%		12/15/11		12/15/11		24,000,000			24,161,786
1.375%		2/15/12		2/15/12		13,000,000			13,140,992
4.875%		7/31/11		7/31/11		6,000,000			6,133,055
5.125%		6/30/11		6/30/11		6,000,000			6,115,171
Total U.S. Government Obligations (Cost $75,065,396)									75,065,396
Total Investments, at Value (Cost $1,187,827,721)						100.4	%		1,187,827,721
Liabilities in Excess of Other Assets						(0.4	)		(4,903,863	)
Net Assets						100.0	%	$	1,182,923,858

14 | OPPENHEIMER CASH RESERVES

Footnotes to Statement of Investments

Short-term notes and direct bank obligations are generally traded on a discount basis; the interest rate shown is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown.

*	The Maturity Date represents the date used to calculate the Fund’s weighted average maturity as determined under Rule 2a-7.
**	If different from the Maturity Date, the Final Legal Maturity date includes any maturity date extensions,which may be affected at the option of the issuer, or unconditional payments of principal by the issuer which may be affected at the option of the Fund, and represents the date used to calculate the Fund’s weighted average life.
1.	Represents the current interest rate for a variable or increasing rate security.
2.	Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $307,450,024 or 25.99% of the Fund’s net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees.

Valuation Inputs

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:

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 table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of January 31, 2011 based on valuation input level:

			Level 2—		Level 3—
	Level 1—		Other Significant		Significant
	Unadjusted		Unobservable		Unobservable
	Quoted Prices		Inputs		Inputs		Value
Assets Table
Investments, at Value:
Certificates of Deposit	$	—	$	277,099,498	$	—	$	277,099,498
Direct Bank Obligations		—		221,963,597		—		221,963,597
Short-Term Notes		—		567,699,230		—		567,699,230
U.S. Government Agencies		—		46,000,000		—		46,000,000
U.S. Government Obligations		—		75,065,396		—		75,065,396
Total Assets	$	—	$	1,187,827,721	$	—	$	1,187,827,721

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.

See the accompanying Notes for further discussion of the methods used in determining value of the Fund’s investments, and a summary of changes to the valuation methodologies, if any, during the reporting period.

See accompanying Notes to Financial Statements.

15 | OPPENHEIMER CASH RESERVES

STATEMENT OF ASSETS AND LIABILITIES Unaudited

January 31, 2011

Assets
Investments, at value (cost $1,187,827,721)—see accompanying statement of investments	$	1,187,827,721
Cash		273,061
Receivables and other assets:
Shares of beneficial interest sold		3,461,587
Interest		420,859
Other		157,477
Total assets		1,192,140,705
Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed		8,791,008
Transfer and shareholder servicing agent fees		234,853
Shareholder communications		88,621
Trustees’ compensation		21,669
Dividends		2,555
Other		78,141
Total liabilities		9,216,847
Net Assets	$	1,182,923,858
Composition of Net Assets
Par value of shares of beneficial interest	$	1,182,959
Additional paid-in capital		1,181,755,983
Accumulated net investment loss		(18,348	)
Accumulated net realized gain on investments		3,264
Net Assets	$	1,182,923,858

16 | OPPENHEIMER CASH RESERVES

Net Asset Value Per Share
Class A Shares:
Net asset value, redemption price and offering price per share (based on net assets of $544,417,260 and 544,449,710 shares of beneficial interest outstanding)	$	1.00
Class B Shares:
Net asset value, redemption price and offering price (excludes applicable contingent deferred sales charge) (based on net assets of $99,399,647 and 99,398,894 shares of beneficial interest outstanding)	$	1.00
Class C Shares:
Net asset value, redemption price and offering price (excludes applicable contingent deferred sales charge) (based on net assets of $303,306,921 and 303,308,340 shares of beneficial interest outstanding)	$	1.00
Class N Shares:
Net asset value, redemption price and offering price (excludes applicable contingent deferred sales charge) (based on net assets of $235,800,030 and 235,801,975 shares of beneficial interest outstanding)	$	1.00

See accompanying Notes to Financial Statements.

17 | OPPENHEIMER CASH RESERVES

STATEMENT OF OPERATIONS Unaudited

For the Six Months Ended January 31, 2011

Investment Income
Interest	$	2,159,261
Expenses
Management fees		2,766,500
Distribution and service plan fees:
Class A		549,351
Class B		422,260
Class C		1,146,538
Class N		645,056
Transfer and shareholder servicing agent fees:
Class A		726,175
Class B		219,820
Class C		423,730
Class N		309,004
Shareholder communications:
Class A		66,620
Class B		16,678
Class C		23,252
Class N		5,569
Trustees’ compensation		39,413
Custodian fees and expenses		6,670
Administration service fees		750
Other		129,793
Total expenses		7,497,179
Less waivers and reimbursements of expenses		(5,395,996	)
Net expenses		2,101,183
Net Investment Income		58,078
Net Realized Gain on Investments		3,264
Net Increase in Net Assets Resulting from Operations	$	61,342

See accompanying Notes to Financial Statements.

18 | OPPENHEIMER CASH RESERVES

STATEMENTS OF CHANGES IN NET ASSETS

	Six Months			Year
	Ended			Ended
	January 31, 2011			July 30,
	(Unaudited)			20101
Operations
Net investment income	$	58,078		$	32,254
Net realized gain		3,264			3,689
Net increase in net assets resulting from operations		61,342			35,943
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A		(25,200	)		(50,380	)
Class B		(4,941	)		(12,942	)
Class C		(14,817	)		(31,280	)
Class N		(13,120	)		(27,079	)
		(58,078	)		(121,681	)
Distributions from net realized gain:
Class A		—			(4,335	)
Class B		—			(1,114	)
Class C		—			(2,692	)
Class N		—			(2,330	)
		—			(10,471	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Class A		15,315,289			(128,181,453	)
Class B		(24,309,519	)		(84,753,937	)
Class C		(5,246,040	)		(108,148,333	)
Class N		(32,774,350	)		(63,598,309	)
		(47,014,620	)		(384,682,032	)
Net Assets
Total decrease		(47,011,356	)		(384,778,241	)
Beginning of period		1,229,935,214			1,614,713,455
End of period (including accumulated net investment loss of $18,348 and $18,348, respectively)	$	1,182,923,858		$	1,229,935,214

1. July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year.

See accompanying Notes to Financial Statements.

19 | OPPENHEIMER CASH RESERVES

FINANCIAL HIGHLIGHTS

	Six Months
	Ended
	January 31, 2011												Year Ended July 31,
Class A	(Unaudited)			20101			2009			2008			2007			2006
Per Share Operating Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income2		—	3		—	3		.01			.03			.04			.03
Net realized gain (loss)		—	3		—	3		—	3		—			—	3		—	3
Total from investment operations		—	3		—	3		.01			.03			.04			.03
Dividends and/or distributions to shareholders:
Dividends from net investment income		—	3		—	3		(.01	)		(.03	)		(.04	)		(.03	)
Distributions from net realized gain		—			—	3		—			—			—	3		—
Total dividends and/or distributions to shareholders		—	3		—	3		(.01	)		(.03	)		(.04	)		(.03	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return4		0.01	%		0.01	%		1.02	%		3.45	%		4.54	%		3.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	544,417		$	529,100		$	657,312		$	558,480		$	440,693		$	445,571
Average net assets (in thousands)	$	544,952		$	578,864		$	688,120		$	521,970		$	432,909		$	403,664
Ratios to average net assets:5
Net investment income		0.01	%		0.00	%6		0.97	%		3.33	%		4.45	%		3.48	%
Total expenses		0.97	%		0.96	%		0.93	%		0.94	%		1.03	%		1.10	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.34	%		0.40	%		0.85	%		0.89	%		0.97	%		0.99	%

1.	July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year.
2.	Per share amounts calculated based on the average shares outstanding during the period.
3.	Less than $0.005 per share.
4.	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.
5.	Annualized for periods less than one full year.
6.	Less than 0.005%.

See accompanying Notes to Financial Statements.

20 | OPPENHEIMER CASH RESERVES

	Six Months
	Ended
	January 31, 2011												Year Ended July 31,
Class B	(Unaudited)			20101			2009			2008			2007			2006
Per Share Operating Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income (loss)2		—	3		—	3		.01			.03			.04			.03
Net realized gain (loss)		—	3		—	3		—	3		—			—	3		—	3
Total from investment operations		—	3		—	3		.01			.03			.04			.03
Dividends and/or distributions to shareholders:
Dividends from net investment income		—	3		—	3		(.01	)		(.03	)		(.04	)		(.03	)
Distributions from net realized gain		—			—	3		—			—			—	3		—
Total dividends and/or distributions to shareholders		—	3		—	3		(.01	)		(.03	)		(.04	)		(.03	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return4		0.01	%		0.01	%		0.84	%		3.18	%		4.29	%		3.29	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	99,400		$	123,709		$	208,508		$	155,422		$	105,041		$	149,571
Average net assets (in thousands)	$	111,551		$	154,948		$	222,601		$	131,647		$	112,029		$	130,319
Ratios to average net assets:5
Net investment income (loss)		0.01	%		(0.02	)%		0.76	%		3.02	%		4.20	%		3.21	%
Total expenses		1.65	%		1.58	%		1.48	%		1.45	%		1.52	%		1.55	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.35	%		0.42	%		1.03	%		1.15	%		1.21	%		1.23	%

1.	July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year.
2.	Per share amounts calculated based on the average shares outstanding during the period.
3.	Less than $0.005 per share.
4.	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.
5.	Annualized for periods less than one full year.

See accompanying Notes to Financial Statements.

21 | OPPENHEIMER CASH RESERVES

FINANCIAL HIGHLIGHTS Continued

	Six Months
	Ended
	January 31, 2011												Year Ended July 31,
Class C	(Unaudited)			20101			2009			2008			2007			2006
Per Share Operating Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income2		—	3		—	3		.01			.03			.04			.03
Net realized gain (loss)		—	3		—	3		—	3		—			—	3		—	3
Total from investment operations		—	3		—	3		.01			.03			.04			.03
Dividends and/or distributions to shareholders:
Dividends from net investment income		—	3		—	3		(.01	)		(.03	)		(.04	)		(.03	)
Distributions from net realized gain		—			—	3		—			—			—	3		—
Total dividends and/or distributions to shareholders		—	3		—	3		(.01	)		(.03	)		(.04	)		(.03	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return4		0.01	%		0.01	%		0.84	%		3.19	%		4.22	%		3.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	303,307		$	308,552		$	416,717		$	318,517		$	194,558		$	169,106
Average net assets (in thousands)	$	303,227		$	343,859		$	454,642		$	271,236		$	151,581		$	126,260
Ratios to average net assets:5
Net investment income		0.01	%		0.00	%6		0.75	%		3.00	%		4.14	%		3.23	%
Total expenses		1.52	%		1.52	%		1.45	%		1.44	%		1.59	%		1.67	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.34	%		0.39	%		1.02	%		1.14	%		1.27	%		1.28	%

1.	July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year.
2.	Per share amounts calculated based on the average shares outstanding during the period.
3.	Less than $0.005 per share.
4.	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.
5.	Annualized for periods less than one full year.
6.	Less than 0.005%.

See accompanying Notes to Financial Statements.

22 | OPPENHEIMER CASH RESERVES

	Six Months
	Ended
	January 31, 2011												Year Ended July 31,
Class N	(Unaudited)			20101			2009			2008			2007			2006
Per Share Operating Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income2		—	3		—	3		.01			.03			.04			.03
Net realized gain (loss)		—	3		—	3		—	3		—			—	3		—	3
Total from investment operations		—	3		—	3		.01			.03			.04			.03
Dividends and/or distributions to shareholders:
Dividends from net investment income		—	3		—	3		(.01	)		(.03	)		(.04	)		(.03	)
Distributions from net realized gain		—			—	3		—			—			—	3		—
Total dividends and/or distributions to shareholders		—	3		—	3		(.01	)		(.03	)		(.04	)		(.03	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return4		0.01	%		0.01	%		0.84	%		3.17	%		4.28	%		3.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	235,800		$	268,574		$	332,176		$	279,361		$	253,631		$	234,809
Average net assets (in thousands)	$	255,741		$	285,549		$	333,117		$	256,809		$	234,641		$	221,369
Ratios to average net assets:5
Net investment income		0.01	%		0.01	%		0.78	%		3.06	%		4.19	%		3.20	%
Total expenses		1.22	%		1.18	%		1.21	%		1.22	%		1.27	%		1.35	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.34	%		0.39	%		1.03	%		1.17	%		1.21	%		1.26	%

1.	July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year.
2.	Per share amounts calculated based on the average shares outstanding during the period.
3.	Less than $0.005 per share.
4.	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.
5.	Annualized for periods less than one full year.

See accompanying Notes to Financial Statements.

23 | OPPENHEIMER CASH RESERVES

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Cash Reserves (the “Fund”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund’s investment objective is to seek the maximum current income that is consistent with stability of principal. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

     The Fund offers Class A, Class B, Class C and Class N shares. Class A shares are sold at their offering price, which is the net asset value per share without any initial sales charge. Class B, Class C and Class N shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (“CDSC”). Class N shares are sold only through retirement plans. Retirement plans that offer Class N shares may impose charges on those accounts. 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, B, C and N have separate distribution and/or service plans under which they pay fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.

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

Securities Valuation. Securities are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. If amortized cost is determined not to approximate market value, the fair value of the portfolio securities will be determined under procedures approved by the Fund’s Board of Trustees.

     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. Unadjusted quoted prices in active markets for identical securities are classified as “Level 1,” inputs other than unadjusted quoted prices for an asset that are observable are classified as “Level 2” and significant unobservable inputs, including the Manager’s judgment about the assumptions that a market participant would use in pricing an asset or liability, are classified as “Level 3.” The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund’s investments under these levels of classification is included following the Statement of Investments.

     In the absence of a readily available unadjusted quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund’s assets are valued but after the close of the securities’ respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific

24 | OPPENHEIMER CASH RESERVES

fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to 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.

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

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 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.

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 but may be paid at other times to maintain the net asset value per share at $1.00. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made to shareholders prior to the Fund’s fiscal year end may ultimately be categorized as a tax return of capital.

25 | OPPENHEIMER CASH RESERVES

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

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.

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. 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:

	Six Months Ended January 31, 2011						Year Ended July 30, 20101
	Shares			Amount			Shares			Amount
Class A
Sold		284,166,885		$	284,166,885			399,410,215		$	399,410,215
Dividends and/or distributions reinvested		24,526			24,526			52,091			52,091
Redeemed		(268,876,122	)		(268,876,122	)		(527,643,759	)		(527,643,759	)
Net increase (decrease)		15,315,289		$	15,315,289			(128,181,453	)	$	(128,181,453	)

26 | OPPENHEIMER CASH RESERVES

	Six Months Ended January 31, 2011						Year Ended July 30, 20101
	Shares			Amount			Shares			Amount
Class B
Sold		28,472,043		$	28,472,043			71,452,585		$	71,452,585
Dividends and/or distributions reinvested		4,766			4,766			13,298			13,298
Redeemed		(52,786,328	)		(52,786,328	)		(156,219,820	)		(156,219,820	)
Net decrease		(24,309,519	)	$	(24,309,519	)		(84,753,937	)	$	(84,753,937	)
Class C
Sold		141,167,909		$	141,167,909			254,827,852		$	254,827,852
Dividends and/or distributions reinvested		14,492			14,492			33,405			33,405
Redeemed		(146,428,441	)		(146,428,441	)		(363,009,590	)		(363,009,590	)
Net decrease		(5,246,040	)	$	(5,246,040	)		(108,148,333	)	$	(108,148,333	)
Class N
Sold		65,936,368		$	65,936,368			156,218,242		$	156,218,242
Dividends and/or distributions reinvested		12,987			12,987			29,206			29,206
Redeemed		(98,723,705	)		(98,723,705	)		(219,845,757	)		(219,845,757	)
Net decrease		(32,774,350	)	$	(32,774,350	)		(63,598,309	)	$	(63,598,309	)

1. July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year.

3. 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 $250 million	0.500	%
Next $250 million	0.475
Next $250 million	0.450
Next $250 million	0.425
Over $1 billion	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 six months ended January 31, 2011, the Fund paid $1,710,002 to OFS for services to the Fund.

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.

27 | OPPENHEIMER CASH RESERVES

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

3. 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 0.20% of the average annual net assets of Class A shares of the Fund. Effective July 1, 2009, the Distributor voluntarily agreed to set the fee rate it is entitled to receive under the Service Plan for Class A at 0.00%. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal services 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 B, Class C and Class N Shares. The Fund has adopted Distribution and Service Plans (the “Plans”) for Class B, Class C and Class N 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 Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B shares and Class C shares and 0.25% on Class N shares. The Distributor is entitled to receive a service fee of 0.25% per year under each plan, but the Board of Trustees has not authorized the Fund to pay the service fees on Class B and Class C shares at this time. Beginning July 1, 2009, the Distributor has voluntarily decreased the rates for the asset-based sales charges for Class B, Class C and Class N shares and service fees for Class N shares to 0.00%. If either the Class B, Class C or Class N plan is terminated by the Fund or by the shareholders of a class, 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 Plans are detailed in the Statement of Operations. The Distributor determines its uncompensated expenses under the Plans at calendar quarter ends. The Distributor’s aggregate uncompensated expenses under the Plans at December 31, 2010 were as follows:

Class C	$	2,675,039
Class N		11,880,868

Sales Charges. Contingent deferred sales charges (“CDSC”) do not represent an expense of the Fund. They are deducted from the proceeds of redemptions of Fund shares prior to remittance. The CDSC retained by the Distributor on the redemption of shares is shown in the table below for the period indicated.

	Class A		Class B		Class C		Class N
	Contingent		Contingent		Contingent		Contingent
	Deferred		Deferred		Deferred		Deferred
	Sales Charges		Sales Charges		Sales Charges		Sales Charges
Six Months	Retained by		Retained by		Retained by		Retained by
Ended	Distributor		Distributor		Distributor		Distributor
January 31, 2011	$	9,103	$	—	$	2,761	$	7,759

28 | OPPENHEIMER CASH RESERVES

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s management fee to an annual rate of 0.40% of the Fund’s daily net assets for each class of shares. As a result of this limitation the Manager waived $315,071 for the six months ended January 31, 2011.

     The Manager has undertaken to waive fees and/or reimburse expenses to the extent necessary to assist the Fund in attempting to maintain a positive yield. As a result, for the six months ended January 31, 2011, the Manager waived and/or reimbursed the Fund $1,030,286, $258,492, $578,795 and $425,109 for Class A, Class B, Class C and Class N, respectively. There is no guarantee that the Fund will maintain a positive yield.

     Effective July 1, 2009, the Distributor voluntarily agreed to set the fee rate it is entitled to receive under the Distribution and/or Service Plans for Class A, Class B, Class C and Class N shares at 0.00%. For the six months ended January 31, 2011, the Distributor waived receipt of Distribution and/or Service Plan fees from Class A, Class B, Class C and Class N shares in the amount of $549,351, $422,260, $1,146,538 and $645,056, respectively.

     OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class.

During the six months ended January 31, 2011, OFS waived transfer and shareholder servicing agent fees as follows:

Class B $ 25,038

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.

4. Pending Litigation

Since 2009, a number of lawsuits have been pending in federal courts against the Manager, the Distributor, and certain mutual funds (“Defendant Funds”) advised by the Manager and distributed by the Distributor (but not including the Fund). The lawsuits naming the Defendant Funds also name as defendants certain officers and current and former trustees of the respective Defendant Funds. The plaintiffs seek class action status on behalf of purchasers of shares of the respective Defendant Fund during a particular time period. The lawsuits raise claims under federal securities laws alleging that, among other things, the disclosure documents of the respective Defendant Fund contained misrepresentations and omissions, that such Defendant Fund’s investment policies were not followed, and that such Defendant Fund and the other defendants violated federal securities laws and regulations. The plaintiffs seek unspecified damages, equitable relief and an award of attorneys’ fees and litigation expenses.

     In 2009, what are claimed to be derivative lawsuits were filed in state court against the Manager and a subsidiary (but not against the Fund), on behalf of the New Mexico Education Plan Trust. These lawsuits allege breach of contract, breach of fiduciary duty, negligence and violation of state securities laws, and seek compensatory damages, equitable relief and an award of attorneys’ fees and litigation expenses.

29 | OPPENHEIMER CASH RESERVES

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

4. Pending Litigation Continued

     Other lawsuits have been filed since 2008 in various state and federal courts, against the Manager and certain of its affiliates. Those lawsuits were filed by investors who made investments through an affiliate of the Manager, and relate to the alleged investment fraud perpetrated by Bernard Madoff and his firm (“Madoff”). Those suits allege 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 damages, equitable relief and an award of attorneys’ fees and litigation expenses. None of the suits have named the Distributor, any of the Oppenheimer mutual funds or any of their independent Trustees or Directors as defendants. None of the Oppenheimer funds invested in any funds or accounts managed by Madoff.

     The Manager believes that the lawsuits described above are without legal merit and is defending against them vigorously. The Defendant Funds’ Boards of Trustees have also engaged counsel to defend the suits brought against those 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 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 funds.

5. Subsequent Event

The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law on December 22, 2010. The Act makes changes to a number of tax rules impacting the Fund. Under the Act, future capital losses generated by a fund may be carried over indefinitely, but these losses must be used prior to the utilization of any pre-enactment capital losses. Since pre-enactment capital losses may only be carried forward for eight years, there may be a greater likelihood that all or a portion of a fund’s pre-enactment capital losses will expire unused. In general, the provisions of the Act will be effective for the Fund’s fiscal year ending 2012. Specific information regarding the impact of the Act on the Fund will be contained within the “Federal Taxes” section of the financial statement notes for the fiscal year ending 2012.

30 | OPPENHEIMER CASH RESERVES

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AGREEMENT Unaudited

Each year, the Board of Trustees (the “Board”), including a majority of the independent Trustees, is required to determine whether to renew the Fund’s investment advisory agreement (the “Agreement”). The Investment Company Act of 1940, as amended, requires that the Board request and evaluate, and that the Manager provide, such information as may be reasonably necessary to evaluate the terms of the Agreement. The Board employs an independent consultant to prepare a report that provides information, including comparative information that the Board requests for that purpose. In addition, the Board receives information throughout the year regarding Fund services, fees, expenses and performance.

     The Manager and the independent consultant provided information to the Board on the following factors: (i) the nature, quality and extent of the Manager’s services, (ii) the investment performance of the Fund and the Manager, (iii) the fees and expenses of the Fund, including comparative expense information, (iv) the profitability of the Manager and its affiliates, including an analysis of the cost of providing services, (v) whether economies of scale are realized as the Fund grows and whether fee levels reflect these economies of scale for Fund investors and (vi) other benefits to the Manager from its relationship with the Fund. The Board was aware that there are alternatives to retaining the Manager.

     Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

     Nature, Quality and Extent of Services. The Board considered information about the nature, quality and extent of the services provided to the Fund and information regarding the Manager’s key personnel who provide such services. The Manager’s duties include providing the Fund with the services of the portfolio managers and the Manager’s investment team, who provide research, analysis and other advisory services in regard to the Fund’s investments; securities trading services; oversight of third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund’s investment restrictions. The Manager is responsible for providing certain administrative services to the Fund as well. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund’s operations; preparing and filing reports required by the Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by Federal and state securities laws for the sale of the Fund’s shares. The Manager also provides the Fund with office space, facilities and equipment.

31 | OPPENHEIMER CASH RESERVES

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AGREEMENT Unaudited / Continued

     The Board also considered the quality of the services provided and the quality of the Manager’s resources that are available to the Fund. The Board took account of the fact that the Manager has had over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Manager’s advisory, administrative, accounting, legal and compliance services, and information the Board has received regarding the experience and professional qualifications of the Manager’s key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Carol Wolf and effective May 2010, Christopher Proctor, the portfolio managers for the Fund, and the Manager’s investment team and analysts. The Board members also considered the totality of their experiences with the Manager as directors or trustees of the Fund and other funds advised by the Manager. The Board considered information regarding the quality of services provided by affiliates of the Manager, which its members have become knowledgeable about in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Manager’s experience, reputation, personnel, operations and resources, that the Fund benefits from the services provided under the Agreement.

     Investment Performance of the Manager and the Fund. Throughout the year, the Manager provided information on the investment performance of the Fund and the Manager, including comparative performance information. The Board also reviewed information, prepared by the Manager and by the independent consultant, comparing the Fund’s historical performance to relevant market indices and to the performance of other retail front-end load and no-load money market funds. The Board considered that, while the Fund underperformed its performance universe median during the one-year, three-year, five-year and ten-year periods, the Fund’s recent performance had improved such that the Fund ranked in the second quintile for the year-to-date and the three-year periods, and ranked in the third quintile for the five-year period ended April 30, 2010. The Board also considered the Manager’s assertion that, in the Fund’s category, small performance differences can result in significantly different quintile rankings and that the difference between the best performer and the worst performer in every time period was less than 1.17%. The Board also considered that the Fund’s gross performance for the one-year period outperformed the iMoney average return during the same period.

     Costs of Services by the Manager. The Board reviewed the fees paid to the Manager and the other expenses borne by the Fund. The Board also considered the comparability of the fees charged and the services provided to the Fund to the fees and

32 | OPPENHEIMER CASH RESERVES

services for other clients or accounts advised by the Manager. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other retail no-load money market funds with comparable asset levels and distribution features. The Board considered that the Fund’s actual management fees and total expenses were higher than its expense group median. The Board noted that the Manager has agreed to voluntarily waive a portion of its management fee so that the fees do not exceed an annual rate of 0.40% of the Fund’s average annual net assets for each class of shares. The Board also noted that beginning January 1, 2009, the Manager has waived and/or reimbursed fees to the extent necessary to help the Fund maintain a positive yield and that those waivers have been significant. The Board noted that the Manager may not modify or terminate these undertakings at any time until after October 28, 2011.

     Economies of Scale and Profits Realized by the Manager. The Board considered information regarding the Manager’s costs in serving as the Fund’s investment adviser, including the costs associated with the personnel and systems necessary to manage the Fund, and information regarding the Manager’s profitability from its relationship with the Fund. The Board reviewed whether the Manager may realize economies of scale in managing and supporting the Fund. The Board noted that the Fund currently has management fee breakpoints, which are intended to share with Fund shareholders economies of scale that may exist as the Fund’s assets grow.

     Other Benefits to the Manager. In addition to considering the profits realized by the Manager, the Board considered information that was provided regarding the direct and indirect benefits the Manager receives as a result of its relationship with the Fund, including compensation paid to the Manager’s affiliates. The Board also considered that the Manager must be able to pay and retain experienced professional personnel at competitive rates to provide quality services to the Fund.

     Conclusions. These factors were also considered by the independent Trustees meeting separately from the full Board, assisted by experienced counsel to the Fund and to the independent Trustees. Fund counsel and the independent Trustees’ counsel are independent of the Manager within the meaning and intent of the Securities and Exchange Commission Rules.

     Based on its review of the information it received and its evaluations described above, the Board, including a majority of the independent Trustees, decided to continue the Agreement through August 31, 2011. In arriving at this decision, the Board did not single out any factor or factors as being more important than others, but considered all of the above information, and considered the terms and conditions of the Agreement, including the management fee, in light of all of the surrounding circumstances.

33 | OPPENHEIMER CASH RESERVES

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 1.800.525.7048, (ii) on the Fund’s website at www.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 1.800.525.7048, 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.

34 | OPPENHEIMER CASH RESERVES

OPPENHEIMER CASH RESERVES

Trustees and Officers	William L. Armstrong, Chairman of the Board of Trustees and Trustee
	George C. Bowen, Trustee
	Edward L. Cameron, Trustee
	Jon S. Fossel, Trustee
	Sam Freedman, Trustee
	Beverly L. Hamilton, Trustee
	Robert J. Malone, Trustee
	F. William Marshall, Jr., Trustee
	William F. Glavin, Jr., Trustee, President and Principal Executive Officer
	Carol E. Wolf, Vice President and Portfolio Manager
	Christopher Proctor, Vice President and Portfolio Manager
	Arthur S. Gabinet, Secretary
	Thomas W. Keffer, Vice President and Chief Business Officer
	Mark S. Vandehey, Vice President and Chief Compliance Officer
	Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
	Robert G. Zack, Vice President
Manager	OppenheimerFunds, Inc.
Distributor	OppenheimerFunds Distributor, Inc.
Transfer and Shareholder Servicing Agent	OppenheimerFunds Services
Independent Registered Public Accounting Firm	KPMG llp
Counsel	K&L Gates LLP
	The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.

©2011 OppenheimerFunds, Inc. All rights reserved.

35 | OPPENHEIMER CASH RESERVES

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 non public 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 www.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.

36 | OPPENHEIMER CASH RESERVES

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 www.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 www.oppenheimerfunds.com or call us at 1.800.525.7048.

37 | OPPENHEIMER CASH RESERVES

Item 2. Code of Ethics.

Not applicable to semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable to semiannual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable to semiannual reports.

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

1. 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 01/31/2011, 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) Not applicable to semiannual reports.
	(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 Cash Reserves
By:	/s/ William F. Glavin, Jr.
	William F. Glavin, Jr.
	Principal Executive Officer
Date:	03/11/2011

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:	03/11/2011
By:	/s/ Brian W. Wixted
	Brian W. Wixted
	Principal Financial Officer
Date:	03/11/2011