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 811-5867
Oppenheimer Pennsylvania 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)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: July 31
Date of reporting period: August 1, 2003 - January 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
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STATEMENT OF INVESTMENTS January 31, 2004 / Unaudited
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--103.4%
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PENNSYLVANIA--70.3%
$ 50,000 Allegheny County HDA (Health Center Devel., Inc.) 6.300% 09/01/2013 $ 50,685
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1,500,000 Allegheny County HDA (The Covenant at South Hills) 8.625 02/01/2021 1,557,405
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180,000 Allegheny County HDA (The Covenant at South Hills) 8.750 02/01/2031 186,563
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350,000 Allegheny County HDA RITES a 21.765 f 11/15/2030 599,606
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1,900,000 Allegheny County HDA RITES a 21.765 f 11/15/2030 3,255,004
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2,000,000 Allegheny County HEBA (Chatham College) 5.750 11/15/2028 2,062,700
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6,925,000 Allegheny County HEBA (Chatham College) 5.750 11/15/2035 7,117,100
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1,000,000 Allegheny County HEBA (Chatham College) 5.850 03/01/2022 1,037,930
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1,000,000 Allegheny County HEBA (Chatham College) 5.950 03/01/2032 1,030,250
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20,000 Allegheny County HEBA (Robert Morris College) 6.200 02/15/2010 21,145
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2,110,000 Allegheny County HEBA (Robert Morris College) 6.250 02/15/2026 2,159,311
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1,775,000 Allegheny County IDA
(Airport Special Facilities/U S Airways) a,d 0.000 03/01/2021 601,281
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15,000 Allegheny County IDA (Kroger Company) 8.500 05/01/2010 15,050
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1,145,000 Allegheny County IDA (Residential Resources) 5.700 09/01/2012 1,131,947
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905,000 Allegheny County IDA (Residential Resources) 6.600 09/01/2031 874,882
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315,000 Allegheny County IDA (USX Corp.) 5.500 12/01/2029 316,534
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115,000 Allegheny County IDA (USX Corp.) 5.600 09/01/2030 115,996
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700,000 Allegheny County IDA (USX Corp.) 6.000 01/15/2014 743,442
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105,000 Allegheny County IDA (USX Corp.) 6.100 01/15/2018 110,381
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10,000 Allegheny County IDA (USX Corp.) 6.100 07/15/2020 10,486
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1,475,000 Allegheny County IDA (USX Corp.) 6.700 12/01/2020 1,526,802
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5,000 Allegheny County Residential Finance Authority 5.625 11/01/2023 5,065
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25,000 Allegheny County Residential Finance Authority 6.250 11/01/2016 26,348
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15,000 Allegheny County Residential Finance Authority 6.600 11/01/2014 15,197
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7,000,000 Allegheny County Residential Finance Authority 7.000 11/01/2017 7,357,350
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85,000 Allegheny County Residential Finance Authority 7.100 05/01/2024 85,948
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420,000 Allegheny County HDA
(West Penn Allegheny Health System) 9.250 11/15/2015 455,116
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1,100,000 Allegheny County HDA
(West Penn Allegheny Health System) 9.250 11/15/2022 1,191,971
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12,640,000 Allegheny County HDA
(West Penn Allegheny Health System) 9.250 11/15/2030 13,696,830
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8,955,000 Beaver County IDA
(Cleveland Electric Illuminating Company) 7.625 05/01/2025 9,620,267
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2,100,000 Beaver County IDA
(Cleveland Electric Illuminating Company) 7.750 07/15/2025 2,278,143
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65,000 Beaver County IDA (J. Ray McDermott & Company) 6.800 02/01/2009 49,050
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570,000 Beaver County IDA (Ohio Edison Company) 5.450 09/15/2033 582,740
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170,000 Beaver County IDA (St. Joe Minerals Corp.) 6.000 05/01/2007 170,360
9 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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PENNSYLVANIA Continued
$7,525,000 Beaver County IDA (Toledo Edison Company) 7.625% 05/01/2020 $ 8,084,032
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2,100,000 Beaver County IDA (Toledo Edison Company) 7.750 05/01/2020 2,293,410
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30,000 Beaver County IDA (Toledo Edison Company) 7.750 05/01/2020 32,926
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15,000 Bedford County IDA (Brown Group) 7.120 02/01/2009 14,985
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750,000 Blair County IDA (Village of PA State) 6.900 01/01/2022 763,403
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2,540,000 Blair County IDA (Village of PA State) 7.000 01/01/2034 2,585,364
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20,000 Bradford County IDA (International Paper Company) 5.900 12/01/2019 20,814
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110,000 Bradford County IDA (International Paper Company) 6.600 03/01/2019 115,578
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800,000 Bucks County IDA (Chandler Hall Health Care Facility) 6.300 05/01/2029 746,568
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1,000,000 Bucks County IDA (Pennswood Village) 6.000 10/01/2027 1,035,880
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330,000 Bucks County IDA (USX Corp.) 5.600 03/01/2033 332,010
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2,000,000 Bucks County IDA RITES a 17.885 f 09/01/2032 2,464,280
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480,000 Butler County IDA (Greenview Gardens Apartments) 6.000 07/01/2023 469,747
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880,000 Butler County IDA (Greenview Gardens Apartments) 6.250 07/01/2033 858,000
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580,000 Butler County IDA (Witco Corp.) 5.850 12/01/2023 518,909
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10,000 Cambria County IDA (PA Electric Company) 6.050 11/01/2025 10,823
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95,000 Chester County H&EFA (Devereaux Foundation) 6.000 11/01/2019 100,968
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30,000 Chester County H&EFA (Immaculata College) 5.600 10/15/2018 30,801
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7,500,000 Chester County H&EFA (Jenners Pond) 7.625 07/01/2034 7,522,800
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750,000 Crawford County HA
(Wesbury United Methodist Community) 6.125 08/15/2019 737,160
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100,000 Cumberland County Municipal Authority
(Presbyterian Homes) 6.000 12/01/2017 101,510
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135,000 Cumberland County Municipal Authority
(Presbyterian Homes) 6.000 12/01/2026 138,141
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6,000,000 Cumberland County Municipal Authority
(Wesley Affiliated Services) 7.250 01/01/2035 5,984,760
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95,000 Dauphin County IDA
(Jersey Central Power & Light Company) 7.125 01/01/2009 95,405
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10,000 Delaware County Authority
(Crozer-Chester Medical Center) 5.300 12/15/2020 10,223
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55,000 Delaware County Authority (Elwyn, Inc.) 5.500 06/01/2020 59,572
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15,000 Delaware County Authority
(MHSSPA/MAS/MHH/MHP/MCMCSPA Obligated Group) 5.375 11/15/2023 16,045
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2,500,000 Delaware County Authority (Neumann College) 6.000 10/01/2031 2,565,350
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750,000 Delaware County Authority (White Horse Village) 7.625 07/01/2030 781,935
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10,000 Delaware County IDA (American Ref-Fuel Company) 6.200 07/01/2019 10,379
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100,000 Erie County HA (St. Mary's Home of Erie) 6.000 08/15/2029 109,986
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5,000 Erie HEBA (Gannon University) 8.370 06/01/2008 5,153
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40,000 Erie HEBA (Mercyhurst College) 5.750 03/15/2013 40,759
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2,020,000 Erie HEBA (Mercyhurst College) 5.750 03/15/2020 2,034,867
10 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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PENNSYLVANIA Continued
$ 35,000 Erie HEBA (Mercyhurst College) 5.750% 03/15/2020 $ 35,813
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25,000 Erie HEBA (Mercyhurst College) 5.750 03/15/2023 25,125
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10,000 Exeter Township Sewer Authority 6.500 04/01/2008 10,053
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60,000 Ferndale Area School District GO 6.750 07/15/2009 60,244
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2,250,000 Indiana County IDA Pollution Control (PSEG Power LLC) 5.850 06/01/2027 2,278,688
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250,000 Jeannette Health Services Authority
(Jeannette District Memorial Hospital) 6.000 11/01/2018 231,700
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1,650,000 Lancaster County IDA (Garden Spot Village) 7.625 05/01/2031 1,702,701
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5,000,000 Lawrence County IDA (Shenango Presbyterian Center) 7.500 11/15/2031 4,769,950
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450,000 Lebanon County Health Facilities Authority
(Pleasant View Retirement Community) 6.625 12/15/2029 443,439
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1,000,000 Lehigh County GPA (Bible Fellowship Church Home) 6.000 12/15/2023 930,040
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1,000,000 Lehigh County GPA (Bible Fellowship Church Home) 7.625 11/01/2021 1,072,710
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750,000 Lehigh County GPA (Bible Fellowship Church Home) 7.750 11/01/2033 802,838
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155,000 Lehigh County GPA (Cedar Crest College) 6.600 04/01/2010 157,945
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70,000 Lehigh County GPA (Cedar Crest College) 6.650 04/01/2017 73,365
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60,000 Lehigh County GPA (Cedar Crest College) 6.700 04/01/2026 62,446
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50,000 Lehigh County GPA (Kidspeace Obligated Group) 5.800 11/01/2012 50,294
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7,985,000 Lehigh County GPA (Kidspeace Obligated Group) 6.000 11/01/2018 7,951,703
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1,000,000 Lehigh County GPA (Kidspeace Obligated Group) 6.000 11/01/2023 979,290
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920,000 Lehigh County IDA (PA Power & Light Company) 5.500 02/15/2027 940,663
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70,000 Lehigh County IDA (PA Power & Light Company) 6.150 08/01/2029 75,881
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95,000 Lehigh County IDA (PA Power & Light Company) 6.400 09/01/2029 99,529
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70,000 Lehigh Northampton Airport Authority
(Allentown-Bethlehem International Airport) 5.600 01/01/2023 71,569
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10,000 Luzerne County IDA (PA Gas & Water Company) 6.050 01/01/2019 10,209
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45,000 McKean County Hospital Authority (Bradford Hospital) 6.100 10/01/2020 46,926
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5,000 McKean County IDA (Kmart Corp.) a 6.875 04/01/2004 2,975
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1,250,000 Monroe County Hospital Authority
(Pocono Health System) 6.000 01/01/2043 1,293,175
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700,000 Montgomery County HEHA
(Philadelphia Geriatric Center) 7.375 12/01/2030 692,559
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50,000 Montgomery County HEHA
(Temple Continuing Care Center) d 6.625 07/01/2019 10,037
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3,150,000 Montgomery County HEHA
(Temple Continuing Care Center) d 6.750 07/01/2029 631,071
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20,000 Montgomery County HEHA (Waverly Heights) 6.000 01/01/2008 20,014
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3,345,000 Montgomery County IDA (ACTS/BPE Obligated Group) 5.875 11/15/2022 3,398,988
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1,750,000 Montgomery County IDA (Meadowood Corp.) 6.250 12/01/2017 1,640,555
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3,840,000 Montgomery County IDA (Wordsworth Academy) 8.000 09/01/2024 3,820,416
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110,000 New Morgan IDA (Browning-Ferris Industries) 6.500 04/01/2019 105,045
11 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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PENNSYLVANIA Continued
$ 810,000 North Penn HHEA (Maple Village) 7.800% 10/01/2024 $ 805,756
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1,205,000 North Penn HHEA (Maple Village) 8.000 10/01/2032 1,196,746
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10,000 Northampton County Higher Education Authority
(Moravian College) 6.200 07/01/2019 10,387
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50,000 Northampton County IDA
(Metropolitan Edison Company) 6.100 07/15/2021 53,794
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80,000 Northeastern PA HEA (Wilkes University) 5.625 10/01/2018 82,277
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4,000,000 Northumberland County IDA (NHS Youth Services) 7.750 02/15/2029 3,921,480
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2,000,000 Ontelaunee Township Municipal Authority 6.250 11/15/2032 1,980,000
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10,000 PA Convention Center Authority, Series A 6.750 09/01/2019 10,461
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1,400,000 PA Convention Center Authority, Series A 6.750 09/01/2019 1,472,548
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2,450,000 PA Convention Center Authority, Series A 6.750 09/01/2019 2,576,959
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8,000,000 PA EDFA (30th St. Garage) 5.875 06/01/2033 8,436,720
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2,000,000 PA EDFA (Colver) 7.050 12/01/2010 2,087,980
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1,500,000 PA EDFA (Colver) 7.125 12/01/2015 1,562,565
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6,000,000 PA EDFA (Colver) 7.150 12/01/2018 6,246,420
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13,700,000 PA EDFA (National Gypsum Company) 6.125 11/02/2027 13,940,572
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5,000,000 PA EDFA (National Gypsum Company) 6.250 11/01/2027 5,128,500
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4,500,000 PA EDFA (Northampton Generating) 6.400 01/01/2009 4,595,175
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4,950,000 PA EDFA (Northampton Generating) 6.500 01/01/2013 5,037,813
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4,500,000 PA EDFA (Northampton Generating) 6.600 01/01/2019 4,563,000
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3,000,000 PA EDFA (Northwestern Human Services) 5.250 06/01/2028 2,181,450
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15,660,000 PA EDFA (Sun Company) 7.600 12/01/2024 16,644,074
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1,500,000 PA HEFA (CA University of PA Student Association) 6.750 09/01/2020 1,597,815
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110,000 PA HEFA (CA University of PA Student Association) 6.750 09/01/2032 114,747
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30,000 PA HEFA (CA University of PA Student Association) 6.800 09/01/2025 31,518
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515,000 PA HEFA (College of Science & Agriculture) 5.250 04/15/2018 510,128
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2,250,000 PA HEFA (College of Science & Agriculture) 5.350 04/15/2028 2,110,343
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1,460,000 PA HEFA
(Delaware Valley College of Science and Agriculture) 5.650 04/15/2025 1,459,328
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3,210,000 PA HEFA
(Delaware Valley College of Science and Agriculture) 5.800 04/15/2030 3,226,853
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3,385,000 PA HEFA
(Delaware Valley College of Science and Agriculture) 5.800 04/15/2033 3,384,188
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1,800,000 PA HEFA (Geneva College) 5.375 04/01/2023 1,789,218
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2,360,000 PA HEFA (Geneva College) 5.450 04/01/2018 2,398,444
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1,000,000 PA HEFA (Geneva College) 6.125 04/01/2022 1,025,060
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750,000 PA HEFA (La Salle University) 5.500 05/01/2034 765,248
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15,000 PA HEFA (Philadelphia University) 6.100 06/01/2030 16,691
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5,000 PA HEFA (Temple University) 7.400 10/01/2010 5,023
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35,000 PA HEFA (University of PA Health Services) 5.750 01/01/2017 36,204
12 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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PENNSYLVANIA Continued
$ 80,000 PA HEFA (University of PA Health Services) 5.750% 01/01/2022 $ 82,157
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10,000 PA HEFA (University of PA Presbyterian Medical Center) 5.875 01/01/2015 10,412
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25,000 PA HEFA (University of the Arts) 5.750 03/15/2030 26,498
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6,500,000 PA HEFA (UPMC Health System) 6.000 01/15/2022 6,941,740
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125,000 PA HFA (Multifamily FHA Mtg.) 8.200 07/01/2024 126,408
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165,000 PA HFA (Multifamily Hsg.) 6.000 07/01/2018 165,974
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15,000 PA HFA (Rental Hsg.) 5.800 07/01/2018 15,284
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2,500,000 PA HFA (Single Family Mtg.) RITES a 16.095 f 10/01/2020 2,873,850
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2,500,000 PA HFA (Single Family Mtg.) RITES a 16.295 f 10/01/2022 2,807,200
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2,000,000 PA HFA (Single Family Mtg.) RITES a 16.788 f 04/01/2021 2,272,040
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2,850,000 PA HFA (Single Family Mtg.) RITES a 17.095 f 10/01/2022 3,312,840
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2,000,000 PA HFA (Single Family Mtg.) RITES a 19.131 f 10/01/2018 2,391,840
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10,000 PA HFA (Single Family Mtg.), Series 41B 6.300 04/01/2009 10,087
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25,000 PA HFA (Single Family Mtg.), Series 47 5.700 10/01/2016 25,956
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165,000 PA HFA (Single Family Mtg.), Series 47 5.700 10/01/2026 169,506
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500,000 PA HFA (Single Family Mtg.), Series 53A 6.000 10/01/2015 523,510
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115,000 PA HFA (Single Family Mtg.), Series 53A 6.050 04/01/2018 120,196
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75,000 PA HFA (Single Family Mtg.), Series 56A 6.050 10/01/2016 78,857
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2,590,000 PA HFA (Single Family Mtg.), Series 59A 5.750 10/01/2023 2,693,678
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2,660,000 PA HFA (Single Family Mtg.), Series 59A 5.800 10/01/2029 2,764,166
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45,000 PA HFA (Single Family Mtg.), Series 60A 5.850 10/01/2027 46,631
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20,000 PA HFA (Single Family Mtg.), Series 61A 5.450 10/01/2021 20,674
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75,000 PA HFA (Single Family Mtg.), Series 61A 5.500 04/01/2029 77,143
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750,000 PA HFA (Single Family Mtg.), Series 62A 5.500 10/01/2022 780,540
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40,000 PA HFA (Single Family Mtg.), Series 66A 5.650 04/01/2029 41,139
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150,000 PA HFA (Single Family Mtg.), Series 67A 5.850 10/01/2018 157,347
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75,000 PA HFA (Single Family Mtg.), Series 67A 5.900 10/01/2030 77,649
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180,000 PA HFA (Single Family Mtg.), Series 68A 6.150 10/01/2030 187,893
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4,740,000 PA HFA (Single Family Mtg.), Series 70A 5.800 04/01/2027 4,959,557
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155,000 PA HFA (Single Family Mtg.), Series 73A 5.350 10/01/2022 161,293
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2,000,000 Philadelphia Airport Authority for Industrial Devel. RITES a 16.985 f 07/01/2022 2,466,360
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25,000 Philadelphia Airport System, Series A 5.750 06/15/2010 26,806
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130,000 Philadelphia Airport System, Series A 6.000 06/15/2015 139,073
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1,400,000 Philadelphia Authority for Industrial Devel.
Senior Living (Arbor House) 6.100 07/01/2033 1,364,454
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1,240,000 Philadelphia Authority for Industrial Devel.
Senior Living (Miriam and Robert M. Rieder House) 6.100 07/01/2033 1,208,516
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1,160,000 Philadelphia Authority for Industrial Devel.
Senior Living (Robert Saligman House) 6.100 07/01/2033 1,130,548
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55,000 Philadelphia Gas Works 5.250 08/01/2015 56,396
13 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$1,780,000 Philadelphia Gas Works RITES a 16.288% f 08/01/2031 $ 2,027,242
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Philadelphia Gas Works RITES a 16.926 f 08/01/2021 2,541,560
- ------------------------------------------------------------------------------------------------------------------------------
30,000 Philadelphia H&HEFA (Chestnut Hill Hospital) 6.375 11/15/2011 30,158
- ------------------------------------------------------------------------------------------------------------------------------
60,000 Philadelphia H&HEFA (Frankford Hospital) 6.000 06/01/2023 63,329
- ------------------------------------------------------------------------------------------------------------------------------
1,550,000 Philadelphia H&HEFA (Friends Hospital) 6.200 05/01/2011 1,583,635
- ------------------------------------------------------------------------------------------------------------------------------
2,350,000 Philadelphia H&HEFA (Jeanes Health System) 6.600 07/01/2010 2,464,046
- ------------------------------------------------------------------------------------------------------------------------------
635,000 Philadelphia H&HEFA (Jeanes Hospital) 5.870 07/01/2017 639,934
- ------------------------------------------------------------------------------------------------------------------------------
2,380,000 Philadelphia H&HEFA (Philadelphia Protestant Home) 6.500 07/01/2027 2,378,120
- ------------------------------------------------------------------------------------------------------------------------------
10,000 Philadelphia H&HEFA (Temple University Hospital) 6.500 11/15/2008 10,649
- ------------------------------------------------------------------------------------------------------------------------------
3,870,000 Philadelphia IDA (Air Cargo) 7.500 01/01/2025 3,940,008
- ------------------------------------------------------------------------------------------------------------------------------
150,000 Philadelphia IDA (American College of Physicians) 6.000 06/15/2030 162,990
- ------------------------------------------------------------------------------------------------------------------------------
70,000 Philadelphia IDA (Baker's Bay Nursing Home Associates) 5.750 08/01/2023 71,583
- ------------------------------------------------------------------------------------------------------------------------------
450,000 Philadelphia IDA (Cathedral Village) 6.750 04/01/2023 449,321
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia IDA (Cathedral Village) 6.870 04/01/2034 1,001,880
- ------------------------------------------------------------------------------------------------------------------------------
3,150,000 Philadelphia IDA (First Mtg.- CPAP) 6.120 04/01/2019 2,465,631
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 Philadelphia IDA
(International Educational & Community Project) 6.000 06/01/2032 3,178,950
- ------------------------------------------------------------------------------------------------------------------------------
25,000 Philadelphia IDA (The Franklin Institute) 5.200 06/15/2018 25,048
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Philadelphia IDA RITES a 16.288 f 10/01/2026 2,301,040
- ------------------------------------------------------------------------------------------------------------------------------
120,000 Philadelphia Redevel. Authority (FHA Title I Insured Loan) 6.100 06/01/2017 124,998
- ------------------------------------------------------------------------------------------------------------------------------
195,000 Philadelphia Redevel. Authority (Multifamily Hsg.) 5.450 02/01/2023 200,530
- ------------------------------------------------------------------------------------------------------------------------------
45,000 Philadelphia Redevel. Authority (Multifamily Hsg.) 6.950 05/15/2024 45,063
- ------------------------------------------------------------------------------------------------------------------------------
2,580,000 Philadelphia Redevel. Authority (Pavilion Apartments) 6.000 10/01/2023 2,524,427
- ------------------------------------------------------------------------------------------------------------------------------
4,100,000 Philadelphia Redevel. Authority (Pavilion Apartments) 6.250 10/01/2032 3,998,238
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Philadelphia School District GO RITES a 18.302 f 08/01/2022 2,867,680
- ------------------------------------------------------------------------------------------------------------------------------
1,210,000 Philadelphia, PA H&HEFA
(Centralized Comprehensive Human Services) 7.250 1/01/2021 1,227,932
- ------------------------------------------------------------------------------------------------------------------------------
20,000 Pittsburgh URA (Oliver Garage) 5.450 6/01/2028 21,109
- ------------------------------------------------------------------------------------------------------------------------------
40,000 Pittsburgh URA Mtg., Series A 5.651 0/01/2024 40,039
- ------------------------------------------------------------------------------------------------------------------------------
30,000 Pittsburgh URA Mtg., Series A 5.651 0/01/2024 30,040
- ------------------------------------------------------------------------------------------------------------------------------
70,000 Pittsburgh URA Mtg., Series A 6.051 0/01/2026 72,762
- ------------------------------------------------------------------------------------------------------------------------------
40,000 Pittsburgh URA Mtg., Series A 7.250 2/01/2024 40,042
- ------------------------------------------------------------------------------------------------------------------------------
10,000 Pittsburgh URA Mtg., Series C 5.700 4/01/2030 10,289
- ------------------------------------------------------------------------------------------------------------------------------
320,000 Pittsburgh URA Mtg., Series C 5.951 0/01/2029 333,763
- ------------------------------------------------------------------------------------------------------------------------------
25,000 Pittsburgh URA Mtg., Series C 7.120 8/01/2013 25,033
- ------------------------------------------------------------------------------------------------------------------------------
10,000 Rose Tree Media School District GO 5.500 2/15/2014 10,020
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Sayre Health Care Facilities (Guthrie Healthcare System) 1.000 v 12/01/2031 2,306,160
- ------------------------------------------------------------------------------------------------------------------------------
620,000 Sayre Health Care Facilities
(VHA PA/VHA East Financing Program) 6.370 7/01/2022 635,872
- ------------------------------------------------------------------------------------------------------------------------------
95,000 St. Mary Hospital Authority (Catholic Health Initiatives) 5.000 12/01/2028 98,953
14 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 2,000,000 Susquehanna Regional Airport Authority 5.375% 01/01/2018 $ 2,002,000
- ------------------------------------------------------------------------------------------------------------------------------
330,000 Union County Hospital Authority
(Evangelical Community Hospital) 5.875 07/01/2023 332,927
- ------------------------------------------------------------------------------------------------------------------------------
50,000 Upper Merion Area School District GO 5.500 09/01/2016 50,165
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 West Cornwall Township Municipal Authority
(Elizabethtown College) 6.000 12/15/2022 1,034,440
- ------------------------------------------------------------------------------------------------------------------------------
300,000 West Shore Area Hospital Authority (Holy Spirit Hospital) 6.250 01/01/2032 309,705
- ------------------------------------------------------------------------------------------------------------------------------
500,000 Westmoreland County IDA
(Redstone Health Care Facilities) 8.000 11/15/2023 539,255
- ------------------------------------------------------------------------------------------------------------------------------
135,000 Westmoreland County IDA (Westmoreland Hospital) 6.000 07/01/2022 138,112
- ------------------------------------------------------------------------------------------------------------------------------
25,000 York County Hospital Authority (York Hospital) 5.500 07/01/2008 25,576
- ------------------------------------------------------------------------------------------------------------------------------
35,000 York Hsg. Corp. Mtg., Series A 6.875 11/01/2009 35,057
-------------
320,984,398
- ------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--33.1%
800,000 Guam EDA (TASC) 5.400 05/15/2031 769,576
- ------------------------------------------------------------------------------------------------------------------------------
2,740,000 Guam EDA (TASC) 5.500 05/15/2041 2,560,804
- ------------------------------------------------------------------------------------------------------------------------------
60,000 Northern Mariana Islands, Series A 6.000 06/01/2014 65,688
- ------------------------------------------------------------------------------------------------------------------------------
1,460,000 Northern Mariana Islands, Series A 6.600 03/15/2028 1,575,690
- ------------------------------------------------------------------------------------------------------------------------------
8,100,000 Northern Mariana Islands, Series A 6.750 10/01/2033 8,302,905
- ------------------------------------------------------------------------------------------------------------------------------
40,285,000 Puerto Rico Children's Trust Fund (TASC) 5.375 05/15/2033 38,510,043
- ------------------------------------------------------------------------------------------------------------------------------
30,720,000 Puerto Rico Children's Trust Fund (TASC) 5.500 05/15/2039 28,742,554
- ------------------------------------------------------------------------------------------------------------------------------
47,420,000 Puerto Rico Children's Trust Fund (TASC) 5.625 05/15/2043 45,173,240
- ------------------------------------------------------------------------------------------------------------------------------
5,000 Puerto Rico HFC 7.500 10/01/2015 5,008
- ------------------------------------------------------------------------------------------------------------------------------
20,000 Puerto Rico Infrastructure 7.500 07/01/2009 20,533
- ------------------------------------------------------------------------------------------------------------------------------
8,880,000 Puerto Rico Port Authority (American Airlines), Series A 6.250 06/01/2026 6,971,333
- ------------------------------------------------------------------------------------------------------------------------------
115,000 Puerto Rico Port Authority, Series D 7.000 07/01/2014 118,950
- ------------------------------------------------------------------------------------------------------------------------------
40,000 Puerto Rico Urban Renewal & Hsg. Corp. 7.875 10/01/2004 40,846
- ------------------------------------------------------------------------------------------------------------------------------
6,645,000 V.I. Government Refinery Facilities (Hovensa Coker) 6.500 07/01/2021 7,188,417
- ------------------------------------------------------------------------------------------------------------------------------
4,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 4,327,120
- ------------------------------------------------------------------------------------------------------------------------------
5,000,000 V.I. Public Finance Authority (Hovensa Refinery) 6.125 07/01/2022 5,294,600
- ------------------------------------------------------------------------------------------------------------------------------
50,000 V.I. Tobacco Settlement Financing Corp. (TASC) 5.000 05/15/2021 47,631
- ------------------------------------------------------------------------------------------------------------------------------
1,830,000 V.I. Tobacco Settlement Financing Corp. (TASC) 5.000 05/15/2031 1,666,508
-------------
151,381,446
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT, AT VALUE (COST $449,545,842)--103.4% 472,365,844
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(3.4) (15,745,326)
-------------
NET ASSETS--100.0% $456,620,518
=============
15 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
a. Identifies issues considered to be illiquid. See Note 5 of Notes to Financial
Statements.
d. Issue is in default. See Note 1 of Notes to Financial Statements.
f. Represents the current interest rate for a variable rate bond known as an
"inverse floater". See Note 1 of Notes to Financial Statements.
v. Represents the current interest rate for a variable or increasing rate
security.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ACTS Adult Communities Total Services
BPE Brittany Pointe Estates
CPAP Crime Prevention Association of Philadelphia
EDA Economic Development Authority
EDFA Economic Development Finance Authority
FHA Federal Housing Authority
GO General Obligation
GPA General Purpose Authority
H&EFA Health and Education Facilities Authority
H&HEFA Hospitals and Higher Education Facilities Authority
HA Hospital Authority
HDA Hospital Development Authority
HEA Hospital and Education Authority
HEBA Higher Education Building Authority
HEFA Higher Education Facilities Authority
HEHA Higher Education and Health Authority
HFA Housing Finance Agency
HFC Housing Finance Corp.
HHEA Health, Hospital and Education Authority
IDA Industrial Development Agency
MAS Mercy Adult Services
MCMCSPA Mercy Catholic Medical Center of Southeastern PA
MHH Mercy Haverford Hospital
MHP Mercy Health Plan
MHSSPA Mercy Health System of Southeastern PA
PSEG Public Service Enterprise Group
RITES Residual Interest Tax Exempt Security
TASC Tobacco Settlement Asset-Backed Bonds
UPMC University of Pittsburgh Medical Center
URA Urban Redevelopment Authority
VHA Voluntary Hospitals of America
V.I. United States Virgin Islands
16 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS January 31, 2004
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY MARKET VALUE PERCENT
- -----------------------------------------------------------------------------
Tobacco Settlements $117,470,356 24.9%
Adult Living Facilities 44,677,004 9.5
Resource Recovery 40,852,451 8.5
Higher Education 38,211,256 8.1
Hospital/Health Care 36,748,456 7.8
Single Family Housing 27,140,323 5.7
Not-for-Profit Organization 24,731,041 5.2
Electric Utilities 22,997,746 4.9
Paper, Containers & Packaging 19,205,464 4.1
Pollution Control 18,809,012 4.0
Multifamily Housing 12,244,919 2.6
General Obligation 11,512,656 2.4
Marine/Aviation Facilities 10,340,456 2.2
Sales Tax Revenue 9,375,101 2.0
Parking Fee Revenue 8,457,829 1.8
Airlines 7,572,614 1.6
Special Tax 7,357,350 1.6
Gas Utilities 4,625,198 1.0
Education 3,188,970 0.7
Water Utilities 2,474,489 0.5
Municipal Leases 2,301,040 0.5
Sewer Utilities 64,035 --
Manufacturing, Non-Durable Goods 18,025 --
------------------------------
Total $472,365,844 100.0%
==============================
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS January 31, 2004 / Unaudited
DISTRIBUTION OF INVESTMENTS BY RATING CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATING PERCENT
- ----------------------------------------------------------------------------
AAA 5.6%
AA 5.8
A 5.1
BBB 62.4
BB 5.1
B 3.3
CCC 1.5
CC 0.0
C 0.1
D 0.0
Not Rated 11.1
------
Total 100.0%
======
Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2004
- ----------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $449,545,842)--see accompanying statement $472,365,844
- ----------------------------------------------------------------------------------------
Cash 491,108
- ----------------------------------------------------------------------------------------
Receivables and other assets:
Interest 7,438,251
Shares of beneficial interest sold 1,795,000
Investments sold 10,000
Other 10,064
--------------
Total assets 482,110,267
- ----------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Notes payable to bank (interest rate 1.8125% at January 31, 2004) 23,600,000
Shares of beneficial interest redeemed 1,435,335
Dividends 288,558
Distribution and service plan fees 56,161
Shareholder communications 43,996
Trustees' compensation 34,679
Transfer and shareholder servicing agent fees 18,337
Other 12,683
--------------
Total liabilities 25,489,749
- ----------------------------------------------------------------------------------------
NET ASSETS $456,620,518
==============
- ----------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $433,804,323
- ----------------------------------------------------------------------------------------
Accumulated net investment income 512,069
- ----------------------------------------------------------------------------------------
Accumulated net realized loss on investments (515,876)
- ----------------------------------------------------------------------------------------
Net unrealized appreciation on investments 22,820,002
--------------
NET ASSETS $456,620,518
==============
18 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $218,248,859 and
17,825,145 shares of beneficial interest outstanding) $12.24
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $12.85
- ----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $161,811,129 and 13,219,850 shares
of beneficial interest outstanding) $12.24
- ----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $76,560,530 and 6,259,885 shares
of beneficial interest outstanding) $12.23
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2004
- --------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 14,790,345
- --------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,189,916
- --------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 140,067
Class B 692,320
Class C 323,010
- --------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 51,717
Class B 46,158
Class C 23,000
- --------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 1,677
Class B 1,261
Class C 599
- --------------------------------------------------------------------------------------------------
Interest expense 155,212
- --------------------------------------------------------------------------------------------------
Custodian fees and expenses 14,897
- --------------------------------------------------------------------------------------------------
Trustees' compensation 10,650
- --------------------------------------------------------------------------------------------------
Other 30,723
--------------
Total expenses 2,681,207
Less reduction to custodian expenses (937)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (643)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (36)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (60)
--------------
Net expenses 2,679,531
- --------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 12,110,814
- --------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 1,805,093
- --------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 24,397,782
- --------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 38,313,689
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Six Months Year
Ended Ended
January 31, 2004 July 31,
(Unaudited) 2003
- --------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 12,110,814 $ 20,547,045
- ------------------------------------------------------------------------------------------------------------
Net realized gain 1,805,093 2,444,605
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 24,397,782 (7,146,660)
------------------------------
Net increase in net assets resulting from operations 38,313,689 15,844,990
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (5,714,121) (10,349,999)
Class B (3,803,891) (6,656,148)
Class C (1,776,635) (3,154,016)
- ------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions:
Class A 20,898,711 41,848,794
Class B 5,643,101 46,875,679
Class C 2,137,433 23,631,773
- ------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 55,698,287 108,041,073
- ------------------------------------------------------------------------------------------------------------
Beginning of period 400,922,231 292,881,158
------------------------------
End of period (including accumulated net investment income (loss)
of $512,069 and $(304,098), respectively) $456,620,518 $400,922,231
==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 11.48 $ 11.57 $ 11.46 $ 11.28 $ 12.08 $ 12.42
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .37 .75 .70 .67 .67 .63
Net realized and unrealized gain (loss) .74 (.11) .11 .21 (.81) (.37)
--------------------------------------------------------------------------
Total from investment operations 1.11 .64 .81 .88 (.14) .26
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.35) (.73) (.70) (.70) (.66) (.60)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.24 $ 11.48 $ 11.57 $ 11.46 $ 11.28 $ 12.08
==========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 9.73% 5.36% 7.36% 8.10% (1.00)% 2.01%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $218,249 $184,638 $144,592 $100,222 $64,336 $72,794
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $198,604 $172,228 $120,251 $ 77,048 $67,252 $71,835
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.09% 6.11% 6.03% 5.84% 5.93% 5.03%
Total expenses 0.85% 0.86% 0.85% 0.94% 1.10% 0.95%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses N/A 3,4 N/A 3 0.82% 5 0.87% 5 0.93% 5 0.90% 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24% 33% 39% 58% 98% 37%
<FN>
1. Assumes an 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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of 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.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 11.48 $ 11.57 $ 11.46 $ 11.27 $ 12.07 $ 12.42
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .32 .65 .62 .59 .58 .53
Net realized and unrealized gain (loss) .74 (.11) .11 .22 (.81) (.38)
--------------------------------------------------------------------------
Total from investment operations 1.06 .54 .73 .81 (.23) .15
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.30) (.63) (.62) (.62) (.57) (.50)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.24 $ 11.48 $ 11.57 $ 11.46 $ 11.27 $ 12.07
==========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 9.31% 4.56% 6.55% 7.40% (1.75)% 1.16%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $161,811 $146,369 $101,126 $52,926 $21,696 $24,206
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $152,752 $127,280 $ 75,772 $32,037 $21,368 $23,845
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.33% 5.34% 5.26% 5.03% 5.16% 4.26%
Total expenses 1.62% 1.63% 1.61% 1.68% 1.96% 1.80%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses N/A 3,4 N/A 3 1.58% 5 1.62% 5 1.68% 5 1.65% 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24% 33% 39% 58% 98% 37%
<FN>
1. Assumes an 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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of 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.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 11.47 $ 11.56 $ 11.45 $ 11.27 $ 12.07 $ 12.41
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .32 .65 .61 .57 .57 .53
Net realized and unrealized gain (loss) .74 (.11) .12 .23 (.80) (.37)
--------------------------------------------------------------------------
Total from investment operations 1.06 .54 .73 .80 (.23) .16
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.30) (.63) (.62) (.62) (.57) (.50)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.23 $ 11.47 $ 11.56 $ 11.45 $ 11.27 $ 12.07
==========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 9.31% 4.57% 6.55% 7.30% (1.75)% 1.25%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $76,561 $69,916 $47,163 $19,494 $6,607 $5,826
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $71,265 $60,202 $33,327 $10,913 $5,542 $5,867
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.33% 5.34% 5.26% 5.01% 5.16% 4.26%
Total expenses 1.62% 1.63% 1.61% 1.68% 1.95% 1.80%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses N/A 3,4 N/A 3 1.58% 5 1.62% 5 1.68% 5 1.65% 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24% 33% 39% 58% 98% 37%
<FN>
1. Assumes an 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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of 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.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Pennsylvania Municipal Fund (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, a non-diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's investment objective is to seek as high a level of current
interest income exempt from federal and Pennsylvania personal income taxes as
is available from municipal securities, consistent with preservation of
capital. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). 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 by
minor amounts due to each class having its own expenses directly attributable
to that class. Classes A, B and C have separate distribution and/or service
plans. Class B shares will automatically convert to Class A shares six years
after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ 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 closing bid and asked
prices, and if not, at the closing bid price. Securities may be valued
primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities (including restricted
securities) for which market quotations are not readily available are valued at
their fair value. 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 their respective foreign exchanges
will be fair valued. Fair value is determined in good faith using consistently
applied procedures under the supervision of the Board of Trustees. Short-term
"money market type" debt securities with remaining maturities of sixty days or
less are valued at amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
INVERSE FLOATING RATE SECURITIES. The Fund invests in inverse floating rate
securities that pay interest at a rate that varies inversely with short-term
interest rates. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund intends to invest no more than 20% of its total assets in inverse
floaters.
25 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
Inverse floaters amount to $32,180,542 as of January 31, 2004. Including the
effect of leverage, inverse floaters represent 17.11% of the Fund's total
assets as of January 31, 2004.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of January 31, 2004, securities with an
aggregate market value of $1,242,389, representing 0.27% of the Fund's net
assets, were in default.
There are certain risks arising from geographic concentration in any State.
Certain revenue or tax related events in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.
- --------------------------------------------------------------------------------
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.
As of January 31, 2004, the Fund had available for federal income tax
purposes an estimated unused capital loss carryforward of $515,879 expiring by
2010. This estimated capital loss carryforward represents carryforward as of
the end of the last fiscal year, increased for losses deferred under tax
accounting rules to the current fiscal year and is increased or decreased by
capital losses or gains realized in the first six months of the current fiscal
year. During the six months ended January 31, 2004 and the year ended July 31,
2003, the Fund used $1,805,093 and $2,261,627, respectively, of carryforward to
offset capital gains realized.
As of July 31, 2003, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
EXPIRING
----------------------
2009 $ 955,323
2010 1,365,649
----------
Total $2,320,972
==========
26 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the six months
ended January 31, 2004, the Fund's projected benefit obligations were increased
by $4,349 and payments of $3,033 were made to retired trustees, resulting in an
accumulated liability of $27,577 as of January 31, 2004.
The Board of Trustees has adopted a deferred compensation 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. Under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
Oppenheimer funds selected by the Trustee. 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 to the Plan.
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DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
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.
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INVESTMENT INCOME. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
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EXPENSE OFFSET ARRANGEMENT. The reduction of custodian fees, if applicable,
represents earnings on cash balances maintained by the Fund.
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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.
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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 income and
expenses during the reporting period. Actual results could differ from those
estimates.
27 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
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2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
SIX MONTHS ENDED JANUARY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
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CLASS A
Sold 2,899,548 $ 34,414,087 5,485,109 $ 64,107,249
Dividends and/or
distributions reinvested 265,158 3,155,228 498,875 5,832,342
Redeemed (1,421,683) (16,670,604) (2,400,518) (28,090,797)
--------------------------------------------------------------
Net increase 1,743,023 $ 20,898,711 3,583,466 $ 41,848,794
==============================================================
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CLASS B
Sold 1,357,416 $ 16,042,451 4,839,117 $ 56,581,145
Dividends and/or
distributions reinvested 155,167 1,845,320 291,066 3,402,315
Redeemed (1,045,501) (12,244,670) (1,121,467) (13,107,781)
--------------------------------------------------------------
Net increase 467,082 $ 5,643,101 4,008,716 $ 46,875,679
==============================================================
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CLASS C
Sold 942,378 $ 11,212,110 3,007,339 $ 35,159,594
Dividends and/or
distributions reinvested 96,401 1,145,529 182,644 2,133,402
Redeemed (875,146) (10,220,206) (1,174,699) (13,661,223)
--------------------------------------------------------------
Net increase 163,633 $ 2,137,433 2,015,284 $ 23,631,773
==============================================================
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3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended January 31, 2004, were
$126,425,091 and $100,236,454, respectively.
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4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets in excess of $1 billion.
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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, 2004, the
Fund paid $121,197 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. This undertaking may be amended or withdrawn at any time.
28 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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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.
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SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class
A shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.15% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses the fees it receives
from the Fund to pay brokers, dealers and other financial institutions for
personal services and account maintenance services they provide for their
customers who 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 years. Fees incurred by the Fund under the plan are detailed in the
Statement of Operations.
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DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of these shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B
shares and on Class C shares. The Distributor also receives a service fee of
0.15% per year under each plan. If either the Class B or Class C 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
the asset-based sales charge in respect to shares sold prior to the effective
date of such termination. The Distributor's aggregate uncompensated expenses
under the plan at January 31, 2004 for Class B and Class C shares was
$5,399,767 and $889,775, respectively. Fees incurred by the Fund under the
plans are detailed in the Statement of Operations.
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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 table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END 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
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January 31, 2004 $110,773 $250 $170,372 $7,931
29 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
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5. ILLIQUID SECURITIES
As of January 31, 2004, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund intends to invest no more than 15% of its net assets (determined at the
time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of January
31, 2004 was $32,784,798, which represents 7.18% of the Fund's net assets.
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6. BANK BORROWINGS
The Fund may borrow up to one third of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The purchase of
securities with borrowed funds creates leverage in the Fund. The Fund has
entered into an agreement which enables it to participate with certain other
Oppenheimer funds in a committed, unsecured line of credit with a bank, which
permits borrowings up to $540 million, collectively. Interest is charged to
each fund, based on its borrowings, at a rate equal to the Federal Funds Rate
plus 0.75%. The rate of the Federal Funds Rate plus 0.625% was effective from
August 1, 2003 to November 8, 2003; thereafter, the rate is 0.75%. The Fund
also pays a commitment fee equal to its pro rata share of the average
unutilized amount of the credit facility at a rate of 0.09% per annum.
The Fund had borrowings outstanding of $23,600,000 at January 31, 2004 at an
interest rate of 1.8125%. For the six months ended January 31, 2004, the
average monthly loan balance was $17,412,222 at an average daily interest rate
of 1.721%. The Fund had gross borrowings and gross loan repayments of
$95,600,000 and $92,200,000, respectively, during the six months ended January
31, 2004. The maximum amount of borrowings outstanding at any month-end was
$23,600,000. The Fund paid commitment fees of $1,806 and interest of $152,011
during the six months ended January 31, 2004.
30 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
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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 1.800.225.5677, (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 will be required to file new 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 first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
31 | OPPENHEIMER PENNSYLVANIA 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 Fund has determined that Edward V. Regan,
the Chairman of the Board's Audit Committee, possesses the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit
committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a meeting of the Board of Trustees of the registrant held on
February 18, 2004, the Board adopted (1) a policy that, should the Board
determine that a vacancy exists or is likely to exist on the Board, the
Governance Committee of the Board, which is comprised entirely of independent
trustees, shall consider any candidates for Board membership recommended by the
registrant's security holders and (2) a policy that security holders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., Two World Financial Center, 225
Liberty Street - 11th Floor, New York, NY 10281-1008, to the attention of the
Chair of the Governance Committee. Prior to February 18, 2004, the Board did not
have a formalized policy with respect to consideration of security holder
nominees or a procedure by which security holders may make their submissions. In
addition to security holder nominees, the Governance Committee may also consider
nominees recommended by independent Board members or recommended by any other
Board members and is authorized under its Charter, upon Board approval, to
retain an executive search firm to assist in screening potential candidates.
Upon Board approval, the Governance Committee may also obtain legal, financial,
or other external counsel that may be necessary or desirable in the screening
process.
ITEM 10. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(c)) as of January 31, 2004,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances that information required to be
disclosed by 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.
(b) There have been no significant changes in registrant's internal
controls over financial reporting that occurred during the
registrant's last fiscal half-year that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)