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 811-2454
OPPENHEIMER MONEY MARKET FUND, INC.
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(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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(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 - JULY 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
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NOTES
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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, AND CHARGES
AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS 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 CAREFULLY BEFORE INVESTING.
8 |OPPENHEIMER MONEY MARKET FUND, INC.
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
reinvested dividends, or other distributions; redemption fees; and exchange
fees; 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 July 31, 2004.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line, 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 "actual" line 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 "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio, and an assumed rate of return
of 5% per year before expenses, which is not the Fund's 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 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" lines of the
table are useful in comparing ongoing
9 | OPPENHEIMER MONEY MARKET FUND, INC.
FUND EXPENSES
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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.
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES PAID
VALUE VALUE DURING 6 MONTHS
(2/1/04) (7/31/04) ENDED 7/31/04
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Actual $1,000.00 $1,002.20 $3.58
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Hypothetical 1,000.00 1,021.28 3.62
Hypothetical assumes 5% annual return before expenses. Expenses are equal to the
Fund's annualized expense ratio, multiplied by the average account value over
the period, multiplied by 182/366 (to reflect the one-half year period). The
expense ratio for the 6-month period ended July 31, 2004 is as follows:
EXPENSE RATIO
- -----------------------
0.72%
10 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS July 31, 2004
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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CERTIFICATES OF DEPOSIT--15.4%
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DOMESTIC CERTIFICATES OF DEPOSIT--1.7%
Wells Fargo Bank NA:
1.30%, 8/6/04 $20,000,000 $ 20,000,000
1.31%, 8/13/04 10,000,000 10,000,000
--------------
30,000,000
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YANKEE CERTIFICATES OF DEPOSIT--13.7%
BNP Paribas, New York:
1.341%, 6/22/05 1 10,000,000 9,995,967
1.39%, 8/5/04 18,000,000 18,000,535
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Calyon, New York,
1.54%, 10/19/04 35,000,000 35,000,000
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Canadian Imperial
Bank of Commerce
NY, 1.39%, 6/28/05 1 20,000,000 19,994,524
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HBOS Treasury
Services, New York:
1.085%, 8/9/04 15,000,000 15,000,000
1.285%, 9/17/04 16,000,000 16,000,000
1.65%, 10/29/04 13,000,000 13,000,000
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Lloyds TSB Bank plc,
New York, 1.39%,
9/24/04 30,000,000 30,000,000
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Nordea Bank Finland
plc, New York Branch,
1.395%, 6/29/05 1 12,000,000 11,996,156
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Societe Generale,
New York, 1.31%,
6/14/05 1 33,000,000 32,991,342
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UBS AG Stamford CT:
1.255%, 9/13/04 25,000,000 25,000,149
1.26%, 9/16/04 20,000,000 20,000,127
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246,978,800
--------------
Total Certificates of Deposit
(Cost $276,978,800) 276,978,800
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DIRECT BANK OBLIGATIONS--7.9%
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AB SPINTAB, 1.09%,
8/5/04 10,000,000 9,998,789
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Calyon North
America, Inc.,
1.40%, 9/9/04 7,000,000 6,989,383
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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DIRECT BANK OBLIGATIONS Continued
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Deutsche Bank
Financial LLC,
1.12%, 8/19/04 $10,000,000 $ 9,994,400
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DnB NOR Bank ASA:
1.24%, 8/12/04 7,500,000 7,497,158
1.315%, 9/2/04 18,000,000 17,978,960
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Governor & Co. of
the Bank of Ireland,
1.08%, 8/6/04 2 9,000,000 8,998,650
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HBOS Treasury
Services:
1.095%, 8/6/04 5,000,000 4,999,240
1.10%, 8/4/04 10,000,000 9,999,083
1.35%, 9/10/04 4,900,000 4,892,650
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LaSalle Bank NA,
1.14%, 8/25/04 15,000,000 15,000,000
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Nationwide Building
Society, 1.32%,
8/20/04 10,000,000 9,993,033
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Nordea North
America, Inc.,
1.60%, 10/14/04 15,000,000 14,950,667
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Toronto Dominion
Holdings, Inc.,
1.42%, 9/22/04 20,000,000 19,958,978
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Total Direct Bank Obligations
(Cost $141,250,991) 141,250,991
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SHORT-TERM NOTES--72.7%
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ASSET-BACKED--23.5%
Eiffel Funding LLC,
1.13%, 8/2/04 2 17,900,000 17,899,438
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FCAR Owner Trust I:
1.61%, 10/15/04 41,100,000 40,963,906
1.61%, 10/18/04 10,000,000 9,965,117
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Gotham Funding Corp.:
1.37%, 8/11/04 2 10,000,000 9,996,194
1.38%, 8/9/04 2 4,639,000 4,637,577
1.40%, 8/5/04 2 19,000,000 18,997,044
1.44%, 8/25/04 2 15,000,000 14,985,600
1.70%, 10/29/04 2 4,769,000 4,748,957
11 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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ASSET-BACKED Continued
GOVCO Inc.:
1.55%, 10/19/04 2 $15,000,000 $ 14,948,979
1.58%, 10/21/04 2 14,744,000 14,691,585
1.59%, 10/25/04 2 20,000,000 19,924,917
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Legacy Capital LLC:
1.36%, 8/12/04 2 25,000,000 24,989,611
1.36%, 9/2/04 2 15,000,000 14,981,200
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Lexington Parker
Capital Co. LLC,
1.16%, 8/3/04 2 21,700,000 21,698,609
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Neptune Funding
Corp.:
1.23%, 8/12/04 2 10,100,000 10,095,803
1.40%, 8/16/04 2 25,000,000 24,985,417
1.40%, 8/19/04 2 17,000,000 16,988,100
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New Center Asset
Trust, 1.60%, 10/7/04 15,000,000 14,955,333
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Perry Global Funding
LLC, Series A, 1.55%,
10/21/04 2 15,000,000 14,947,688
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Regency Markets
No. 1 LLC, 1.28%,
8/20/04 2 35,000,000 34,975,986
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Solitaire Funding
LLC, 1.27%, 8/16/04 2 10,000,000 9,994,708
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Thornburg Mortgage
Capital Resources,
1.685%, 11/1/04 2 25,000,000 24,904,049
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Victory Receivables
Corp., 1.55%,
10/12/04 2 36,136,000 36,023,978
--------------
421,299,796
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CAPITAL MARKETS--15.1%
Banc of America
Securities LLC,
1.40%, 8/2/04 1 50,000,000 50,000,000
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Bear Stearns Cos.,
Inc., 1.29%, 8/10/04 10,000,000 9,996,775
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Citigroup Global
Markets Holdings, Inc.:
1.34%, 8/19/04 25,000,000 24,983,250
1.52%, 10/18/04 30,000,000 29,901,200
1.555%, 10/22/04 5,000,000 4,982,290
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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CAPITAL MARKETS Continued
Goldman Sachs Group, Inc.:
1.22%, 8/23/04 3 $10,000,000 $ 10,000,000
1.25%, 10/20/04 3 19,000,000 19,000,000
1.39%, 9/20/04 3 10,000,000 10,000,000
1.68%, 10/18/04 3 15,000,000 15,000,000
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Lehman Brothers,
Inc., 1.38%, 12/15/04 1 25,000,000 25,000,000
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Morgan Stanley:
1.25%, 8/27/04 1 35,400,000 35,400,000
1.40%, 8/27/04 4,800,000 4,795,147
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Wachovia Securities
LLC, 1.47%, 12/22/04 1 33,000,000 33,000,000
--------------
272,058,662
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COMMERCIAL BANKS--2.5%
Bank of America
Corp., 1.60%,
10/26/04 35,000,000 34,866,222
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J.P. Morgan Chase
& Co., 1.30%,
8/12/04 10,000,000 9,996,028
--------------
44,862,250
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COMMERCIAL FINANCE--4.0%
American Express
Credit Corp., Series B,
1.51%, 12/16/04 1 10,000,000 10,005,600
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Caterpillar Financial
Services Corp.,
Series F, 1.70%,
1/14/05 1 15,500,000 15,509,899
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Countrywide Home
Loans, 1.37%, 8/2/04 45,900,000 45,898,215
--------------
71,413,714
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COMMUNICATIONS EQUIPMENT--0.4%
UT Telecommunication
Open Infrastructure
Agency RB, 1.45%,
9/1/04 1 7,000,000 7,000,000
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DIVERSIFIED FINANCIAL SERVICES--5.9%
General Electric Capital Corp.:
1.29%, 9/8/04 20,000,000 19,972,767
1.34%, 9/7/04 15,000,000 14,979,342
12 | OPPENHEIMER MONEY MARKET FUND, INC.
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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DIVERSIFIED FINANCIAL SERVICES Continued
General Electric Capital Services:
1.30%, 9/9/04 $10,000,000 $ 9,985,917
1.51%, 10/8/04 16,000,000 15,954,364
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Household Finance
Corp.:
1.54%, 10/22/04 15,000,000 14,947,383
1.60%, 10/13/04 4,800,000 4,784,427
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Prudential Funding
LLC:
1.12%, 8/4/04 13,000,000 12,998,787
1.62%, 10/28/04 12,000,000 11,952,480
--------------
105,575,467
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INSURANCE--10.6%
ING America
Insurance Holdings,
Inc.:
1.62%, 10/27/04 15,000,000 14,941,275
1.72%, 11/29/04 35,000,000 34,799,335
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Jackson National Life
Global Funding,
Series 2004-6,
1.38%, 8/16/04 1,4 17,500,000 17,500,000
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Jackson National
Life Insurance Co.:
1.36%, 3/1/05 1 30,000,000 30,000,000
1.37%, 9/1/04 1 2,000,000 2,000,000
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Metropolitan Life
Global Funding I,
Series 2003-5, 1.39%,
8/15/04 1,3 18,000,000 18,000,000
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Prudential Insurance
Co. of America,
1.60%, 1/31/05 1 25,000,000 25,000,000
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Security Life of
Denver Insurance Co.:
1.31%, 8/18/04 1 14,000,000 14,000,000
1.46%, 10/27/04 1 25,000,000 25,000,000
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United of Omaha
Life Insurance Co.,
1.46%, 8/2/04 1,3 10,000,000 10,000,000
--------------
191,240,610
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SPECIAL PURPOSE FINANCIAL--10.7%
Blue Spice LLC,
1.54%, 10/12/04 2 3,900,000 3,887,988
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL Continued
K2 (USA) LLC:
1.28%, 8/23/04 2 $20,000,000 $ 19,984,356
1.44%, 6/30/05 1,4 18,500,000 18,496,568
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LINKS Finance LLC:
1.35%, 10/15/04 1,4 17,500,000 17,500,000
1.38%, 1/21/05 1,4 10,000,000 9,999,057
1.41%, 8/25/04 1,4 10,000,000 9,999,868
1.41%, 9/30/04 1,4 15,000,000 14,999,508
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Parkland (USA) LLC:
1.36%, 10/15/04 1,4 10,000,000 9,999,795
1.36%, 1/14/05 1,4 20,000,000 19,999,090
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RACERS Trust,
Series 2004-6-MM,
1.426%, 8/23/04 1,4 15,000,000 15,000,000
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Sigma Finance, Inc.:
1.33%, 12/6/04 1,4 10,000,000 9,999,310
1.34%, 9/16/04 2 7,000,000 6,988,014
1.35%, 12/15/04 1,4 25,000,000 24,998,607
1.42%, 11/26/04 1,4 11,000,000 10,999,474
--------------
192,851,635
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Total Short-Term Notes
(Cost $1,306,302,134) 1,306,302,134
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U.S. GOVERNMENT AGENCIES--3.6%
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Federal Home Loan
Bank, 1.50%, 3/1/05 10,000,000 10,000,000
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Federal National
Mortgage Assn.:
1.375%, 2/18/05 13,000,000 13,000,000
1.55%, 5/4/05 10,000,000 10,000,000
1.60%, 5/13/05 10,000,000 10,000,000
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FNMA Master
Credit Facility,
1.61%, 10/1/04 22,500,000 22,438,619
--------------
Total U.S. Government Agencies
(Cost $65,438,619) 65,438,619
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TOTAL INVESTMENTS,
AT VALUE
(Cost $1,789,970,544) 99.6% 1,789,970,544
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OTHER ASSETS
NET OF LIABILITIES 0.4 7,078,439
----------------------------------
NET ASSETS 100.0% $1,797,048,983
==================================
13 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS Continued
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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.
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 $395,274,448, or 22.00% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Directors.
3. Illiquid security. See Note 4 of Notes to Financial Statements.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $179,491,277 or 9.99% of the Fund's net
assets as of July 31, 2004.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
14 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES July 31, 2004
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- --------------------------------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,789,970,544)--see accompanying statement of investments $1,789,970,544
- --------------------------------------------------------------------------------------------------------
Cash 6,693,123
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Receivables and other assets:
Shares of capital stock sold 8,162,545
Interest 1,306,837
Other 121,353
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Total assets 1,806,254,402
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LIABILITIES
- --------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 7,633,138
Dividends 421,149
Directors' compensation 413,652
Transfer and shareholder servicing agent fees 341,605
Shareholder communications 225,280
Other 170,595
--------------
Total liabilities 9,205,419
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NET ASSETS $1,797,048,983
==============
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COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 179,698,119
- --------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,617,348,076
- --------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 2,788
--------------
NET ASSETS--applicable to 1,796,981,191 shares of capital stock outstanding $1,797,048,983
==============
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NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE $ 1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS For the Year Ended July 31, 2004
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 20,778,605
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 7,541,850
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 4,660,105
- --------------------------------------------------------------------------------
Shareholder communications 440,113
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Directors' compensation 91,692
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Custodian fees and expenses 22,101
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Other 478,365
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Total expenses 13,234,226
Less reduction to custodian expenses (3,643)
Less payments and waivers of expenses (239,189)
-----------
Net expenses 12,991,394
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NET INVESTMENT INCOME 7,787,211
- --------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 2,788
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,789,999
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2004 2003
- ------------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------------
Net investment income $ 7,787,211 $ 16,705,752
- ------------------------------------------------------------------------------------------------------------
Net realized gain 2,788 194,006
------------------------------------
Net increase in net assets resulting from operations 7,789,999 16,899,758
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------
Dividends from net investment income (7,787,211) (16,705,752)
- ------------------------------------------------------------------------------------------------------------
Distributions from net realized gain -- (183,666)
- ------------------------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from capital stock transactions (158,321,330) (138,126,578)
- ------------------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------------
Total decrease (158,318,542) (138,116,238)
- ------------------------------------------------------------------------------------------------------------
Beginning of period 1,955,367,525 2,093,483,763
- ------------------------------------------------------------------------------------------------------------
End of period $ 1,797,048,983 $ 1,955,367,525
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31 2004 2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain -- 1 .01 .02 .05 .05
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- 1 (.01) (.02) (.05) (.05)
Distributions from net realized gain -- -- 1 -- 1 -- --
-----------------------------------------------------------
Total dividends and/or distributions
to shareholders -- 1 (.01) (.02) (.05) (.05)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN 2 0.43% 0.84% 1.88% 5.32% 5.38%
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $1,797 $1,955 $2,093 $2,128 $1,812
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,808 $2,014 $2,006 $1,968 $1,712
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.43% 0.83% 1.88% 5.14% 5.27%
Total expenses 0.73% 0.72% 0.79% 0.68% 0.78%
Expenses after payments and waivers
and reduction to custodian expenses 0.72% N/A 4 0.63% N/A 4 N/A 4
1. Less than $0.005 per share.
2. 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 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.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
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- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Money Market Fund, Inc. (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 advisor is
OppenheimerFunds, Inc. (the Manager).
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. In the event of default by the other party to the agreement,
retention of the collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
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 tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years for
federal income tax purposes.
UNDISTRIBUTED NET UNDISTRIBUTED ACCUMULATED
INVESTMENT INCOME LONG-TERM GAIN LOSS CARRYFORWARD 1,2
-----------------------------------------------------------------
$672,783 $-- $--
1. During the fiscal year ended July 31, 2004, the Fund did not utilize any
capital loss carryforward.
2. During the fiscal year ended July 31, 2003, the Fund did not utilize any
capital loss carryforward.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
19 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The tax character of distributions paid during the years ended July 31, 2004 and
July 31, 2003 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2004 JULY 31, 2003
----------------------------------------------------------------
Distributions paid from:
Ordinary income $ 7,787,211 $16,705,752
Long-term capital gain -- 183,666
------------------------------
Total $ 7,787,211 $16,889,418
==============================
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Fund has adopted an unfunded retirement plan for
the Fund's independent directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the year ended
July 31, 2004, the Fund's projected benefit obligations were increased by
$41,242 and payments of $28,366 were made to retired directors, resulting in an
accumulated liability of $382,490 as of July 31, 2004.
The Board of Directors has adopted a deferred compensation plan for
independent directors that enables directors 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 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 Director. The Fund
purchases shares of the funds selected for deferral by the Director 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 directors' 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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENT. The reduction of custodian fees, if applicable,
represents earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles 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.
20 | OPPENHEIMER MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------
2. SHARES OF CAPITAL STOCK
The Fund has authorized five billion shares of $.10 par value capital stock.
Transactions in shares of capital stock were as follows:
YEAR ENDED JULY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------
Sold 2,854,348,310 $ 2,854,348,310 3,243,493,493 $ 3,243,493,493
Dividends and/or
distributions reinvested 7,233,743 7,233,743 16,688,782 16,688,782
Redeemed (3,019,903,383) (3,019,903,383) (3,398,308,853) (3,398,308,853)
------------------------------------------------------------------------------
Net decrease (158,321,330) $ (158,321,330) (138,126,578) $ (138,126,578)
==============================================================================
- --------------------------------------------------------------------------------
3. 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 0.45% of the first $500 million of aggregate net assets, 0.425%
of the next $500 million of net assets, 0.40% of the next $500 million of net
assets, 0.375% of the next $1.5 billion of net assets, and 0.35% of average
annual net assets in excess of $3.0 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended July 31, 2004, the Fund paid
$4,536,046 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. OFS has voluntarily agreed to limit transfer
and shareholder servicing agent fees to 0.35% of average annual net assets of
the Fund. During the year ended July 31, 2004, OFS waived $239,189. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
4. ILLIQUID SECURITIES
As of July 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 will not invest more than 10% 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 July 31, 2004 was
$82,000,000, which represents 4.56% of the Fund's net assets.
- --------------------------------------------------------------------------------
5. SUBSEQUENT EVENTS
LITIGATION. Three complaints have been filed as putative derivative and class
actions against the Manager, OFS and the Distributor (collectively,
"OppenheimerFunds"), as well as 51 of the Oppenheimer funds (collectively, the
"Funds") excluding this Fund, and nine directors/trustees of certain of the
Funds (collectively, the "Directors/Trustees"). The complaints allege that the
Manager charged excessive fees for distribution and other costs, improperly used
assets of the Funds in the form of directed brokerage commissions and 12b-1 fees
to
21 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. SUBSEQUENT EVENTS Continued
pay brokers to promote sales of the Funds, and failed to properly disclose
the use of Fund assets to make those payments in violation of the Investment
Company Act of 1940 and the Investment Advisers Act of 1940. The complaints
further allege that by permitting and/or participating in those actions, the
Directors/Trustees breached their fiduciary duties to Fund shareholders under
the Investment Company Act of 1940 and at common law.
OppenheimerFunds believes that it is premature to render any opinion as to the
likelihood of an outcome unfavorable to them, the Funds or the
Directors/Trustees and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss. However,
OppenheimerFunds, the Funds and the Directors/Trustees believe that the
allegations contained in the complaints are without merit and intend to defend
these lawsuits vigorously.
- --------------------------------------------------------------------------------
ADDITIONAL CLASS OF SHARES. Effective August 27, 2004, the Fund will offer Class
Y shares.
22 | OPPENHEIMER MONEY MARKET FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS OF OPPENHEIMER MONEY MARKET FUND, INC.:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Money Market Fund, Inc., including the statement of investments, as
of July 31, 2004, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of July 31, 2004, by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Money Market Fund, Inc. as of July 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
KPMG LLP
Denver, Colorado
August 20, 2004 except as to the note entitled "Subsequent Events-Litigation,"
which is as of September 14, 2004
23 | OPPENHEIMER MONEY MARKET FUND, INC.
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2004. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the year ended July 31, 2004
are qualified dividend income or eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES 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 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 Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) 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
http://www.sec.gov. Those forms may be reviewed and copied and the SEC's Public
Reference Room in Washington D.C. and information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
24 | OPPENHEIMER MONEY MARKET FUND, INC.
DIRECTORS AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER
FUND, LENGTH OF SERVICE, AGE TRUSTEESHIPS/DIRECTORSHIPS HELD BY DIRECTOR; NUMBER OF
PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY DIRECTOR
INDEPENDENT THE ADDRESS OF EACH DIRECTOR IN THE CHART BELOW IS 6803 S.
DIRECTORS TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH DIRECTOR SERVES
FOR AN INDEFINITE TERM, UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Of Counsel (since June 1993) Hogan & Hartson (a law firm); a
Chairman of the Board director (since 2002) of Danielson Holding Corp. Formerly a
of Directors (since 2003); director of Weyerhaeuser Corp. (1999-April 2004),
Director (since 1993) Caterpillar, Inc. (1993-December 2002), ConAgra Foods
Age: 73 (1993-2001), Texas Instruments (1993-2001) and FMC
Corporation (1993-2001). Oversees 25 portfolios in the
OppenheimerFunds complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees
Director (since 1993) 35 portfolios in the OppenheimerFunds complex.
Age: 71
PHILLIP A. GRIFFITHS, A director (since 1991) of the Institute for Advanced Study,
Director (since 2002) Princeton, N.J., a director (since 2001) of GSI Lumonics, a
Age: 65 trustee (since 1983) of Woodward Academy, a Senior Advisor
(since 2001) of The Andrew W. Mellon Foundation. A member
of: the National Academy of Sciences (since 1979), American
Academy of Arts and Sciences (since 1995), American
Philosophical Society (since 1996) and Council on Foreign
Relations (since 2002). Formerly a director of Bankers Trust
New York Corporation (1994-1999). Oversees 25 portfolios in
the OppenheimerFunds complex.
JOEL W. MOTLEY, Director (since January 2002) Columbia Equity Financial
Director (since 2002) Corp. (privately-held financial adviser); Managing Director
Age: 53 (since January 2002) Carmona Motley, Inc. (privately-held
financial adviser). Formerly a Managing Director of Carmona
Motley Hoffman Inc. (privately-held financial adviser)
(January 1998-December 2001). Oversees 25 portfolios in the
OppenheimerFunds complex.
KENNETH A. RANDALL, A director (since February 1972) of Dominion Resources, Inc.
Director (since 1987) (electric utility holding company); formerly a director of
Age: 77 Prime Retail, Inc. (real estate investment trust) and
Dominion Energy, Inc. (electric power and oil & gas
producer), President and Chief Executive Officer of The
Conference Board, Inc. (international economic and business
research) and a director of Lumbermens Mutual Casualty
Company, American Motorists Insurance Company and American
Manufacturers Mutual Insurance Company. Oversees 25
portfolios in the OppenheimerFunds complex.
EDWARD V. REGAN, President, Baruch College, CUNY; a director of RBAsset (real
Director (since 1993) estate manager); a director of OffitBank; formerly Trustee,
Age: 74 Financial Accounting Foundation (FASB and GASB), Senior
Fellow of Jerome Levy Economics Institute, Bard College,
Chairman of Municipal Assistance Corporation for the City of
New York, New York State Comptroller and Trustee of New York
State and Local Retirement Fund. Oversees 25 investment
companies in the OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman (since 1993) of The Directorship Search Group, Inc.
Director (since 1989) (corporate governance consulting and executive recruiting);
Age: 72 a Life Trustee of International House (non-profit
educational organization); a former trustee of The
Historical Society of the Town of Greenwich. Oversees 25
portfolios in the OppenheimerFunds complex.
25 | OPPENHEIMER MONEY MARKET FUND, INC.
DONALD W. SPIRO, Chairman Emeritus (since January 1991) of the Manager.
Vice Chairman of the Formerly a director (January 1969-August 1999) of the
Board of Directors, Manager. Oversees 25 portfolios in the OppenheimerFunds
Director (since 1987) complex.
Age: 78
- -----------------------------------------------------------------------------------------------
INTERESTED DIRECTOR THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD
AND OFFICER FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK,
NY 10281-1008. MR. MURPHY SERVES FOR AN INDEFINITE TERM,
UNTIL HIS RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June
President and Director 2001) and President (since September 2000) of the Manager;
(since 2001) President and a director or trustee of other Oppenheimer
Age: 55 funds; President and a director (since July 2001) of
Oppenheimer Acquisition Corp. (the Manager's parent holding
company) and of Oppenheimer Partnership Holdings, Inc. (a
holding company subsidiary of the Manager); a director
(since November 2001) of OppenheimerFunds Distributor, Inc.
(a subsidiary of the Manager); Chairman and a director
(since July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc. (transfer agent
subsidiaries of the Manager); President and a director
(since July 2001) of OppenheimerFunds Legacy Program (a
charitable trust program established by the Manager); a
director of the following investment advisory subsidiaries
of the Manager: OFI Institutional Asset Management, Inc.,
Centennial Asset Management Corporation, Trinity Investment
Management Corporation and Tremont Capital Management, Inc.
(since November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc. (since July
2001); President (since November 1, 2001) and a director
(since July 2001) of Oppenheimer Real Asset Management,
Inc.; Executive Vice President (since February 1997) of
Massachusetts Mutual Life Insurance Company (the Manager's
parent company); a director (since June 1995) of DLB
Acquisition Corporation (a holding company that owns the
shares of Babson Capital Management LLC); a member of the
Investment Company Institute's Board of Governors (elected
to serve from October 3, 2003 through September 30, 2006).
Formerly, Chief Operating Officer (September 2000-June 2001)
of the Manager; President and trustee (November
1999-November 2001) of MML Series Investment Fund and
MassMutual Institutional Funds (open-end investment
companies); a director (September 1999-August 2000) of C.M.
Life Insurance Company; President, Chief Executive Officer
and director (September 1999-August 2000) of MML Bay State
Life Insurance Company; a director (June 1989-June 1998) of
Emerald Isle Bancorp and Hibernia Savings Bank (a
wholly-owned subsidiary of Emerald Isle Bancorp). Oversees
73 portfolios as Trustee/ Director and 10 portfolios as
Officer in the OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------
OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS:
FOR MR. ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
11TH FLOOR, NEW YORK, NY 10281-1008, FOR MESSRS. VANDEHEY,
WEISS AND WIXTED AND MS.WOLF, 6803 S. TUCSON WAY, CENTENNIAL,
CO 80112-3924. EACH OFFICER SERVES FOR AN ANNUAL TERM OR
UNTIL HIS OR HER EARLIER RESIGNATION, DEATH OR REMOVAL.
BARRY D. WEISS, Vice President of the Manager (since July 2001) and of
Vice President (since 2001) HarbourView Asset Management Corporation (since June 2003);
Age: 40 an officer of 6 portfolios in the OppenheimerFunds complex.
Formerly Assistant Vice President and Senior Credit Analyst
of the Manager (February 2000-June 2001). Prior to joining
the Manager in February 2000, he was Associate Director,
Structured Finance, Fitch IBCA Inc. (April 1998 - February
2000).
26 | OPPENHEIMER MONEY MARKET FUND, INC.
DIRECTORS AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
CAROL E. WOLF, Senior Vice President of the Manager (since June 2000) and
Vice President (since 1988) of HarbourView Asset Management Corporation (since June
Age: 52 2003); an officer of 6 portfolios in the OppenheimerFunds
complex. Formerly Vice President of the Manager (June 1990 -
June 2000).
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of
Treasurer (since 1999) the Manager; Treasurer of HarbourView Asset Management
Age: 44 Corporation, Shareholder Financial Services, Inc.,
Shareholder Services, Inc., Oppenheimer Real Asset
Management Corporation, and Oppenheimer Partnership
Holdings, Inc. (since March 1999), of OFI Private
Investments, Inc. (since March 2000), of OppenheimerFunds
International Ltd. and OppenheimerFunds plc (since May
2000), of OFI Institutional Asset Management, Inc. (since
November 2000), and of OppenheimerFunds Legacy Program (a
Colorado non-profit corporation) (since June 2003);
Treasurer and Chief Financial Officer (since May 2000) of
OFI Trust Company (a trust company subsidiary of the
Manager); Assistant Treasurer (since March 1999) of
Oppenheimer Acquisition Corp. Formerly Assistant Treasurer
of Centennial Asset Management Corporation (March
1999-October 2003) and OppenheimerFunds Legacy Program
(April 2000-June 2003); Principal and Chief Operating
Officer (March 1995-March 1999) at Bankers Trust
Company-Mutual Fund Services Division. An officer of 83
portfolios in the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General
Secretary (since 2001) Counsel (since February 2002) of the Manager; General
Age: 56 Counsel and a director (since November 2001) of the
Distributor; General Counsel (since November 2001) of
Centennial Asset Management Corporation; Senior Vice
President and General Counsel (since November 2001) of
HarbourView Asset Management Corporation; Secretary and
General Counsel (since November 2001) of Oppenheimer
Acquisition Corp.; Assistant Secretary and a director (since
October 1997) of OppenheimerFunds International Ltd. and
OppenheimerFunds plc; Vice President and a director (since
November 2001) of Oppenheimer Partnership Holdings, Inc.; a
director (since November 2001) of Oppenheimer Real Asset
Management, Inc.; Senior Vice President, General Counsel and
a director (since November 2001) of Shareholder Financial
Services, Inc., Shareholder Services, Inc., OFI Private
Investments, Inc. and OFI Trust Company; Vice President
(since November 2001) of OppenheimerFunds Legacy Program;
Senior Vice President and General Counsel (since November
2001) of OFI Institutional Asset Management, Inc.; a
director (since June 2003) of OppenheimerFunds (Asia)
Limited. Formerly Senior Vice President (May 1985-December
2003), Acting General Counsel (November 2001-February 2002)
and Associate General Counsel (May 1981-October 2001) of the
Manager; Assistant Secretary of Shareholder Services, Inc.
(May 1985-November 2001), Shareholder Financial Services,
Inc. (November 1989-November 2001); and OppenheimerFunds
International Ltd. (October 1997-November 2001). An officer
of 83 portfolios in the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer (since
Vice President and March 2004) of the Manager; Vice President (since June 1983)
Chief Compliance Officer of OppenheimerFunds Distributor, Inc., Centennial Asset
(since 2004) Management Corporation and Shareholder Services, Inc.
Age: 53 Formerly (until February 2004) Vice President and Director
of Internal Audit of OppenheimerFunds, Inc. An officer of 83
portfolios in the Oppenheimer funds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S DIRECTORS AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST.
27 | OPPENHEIMER MONEY MARKET FUND, INC.
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 Directors of the registrant 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" Director pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees
The principal accountant for the audit of the registrant's
annual financial statements billed $38,000 in fiscal 2004 and
$35,000 in fiscal 2003.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees to the
registrant during the last two fiscal years.
The principal accountant for the audit of the registrant's
annual financial statements billed $39,500 in fiscal 2004 and
no such fees in fiscal 2003 to the registrant's investment
adviser or any entity controlling, controlled by, or under
common control with the adviser that provides ongoing
services to the registrant.
Such fees would include, among others: due diligence related
to mergers and acquisitions, accounting consultations and
audits in connection with acquisitions, internal control
reviews and consultation concerning financial accounting and
reporting standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees in fiscal 2004
and $5,000 in fiscal 2003.
The principal accountant for the audit of the registrant's
annual financial statements billed $6,000 in fiscal 2004 and
no such fees in fiscal 2003 to the registrant's investment
adviser or any entity controlling, controlled by, or under
common control with the adviser that provides ongoing
services to the registrant.
Such fees would include, among others: tax compliance, tax
planning and tax advice. Tax compliance generally involves
preparation of original and amended tax returns, claims for a
refund and tax payment-planning services. Tax planning and tax
advice includes assistance with tax audits and appeals, tax
advice related to mergers and acquisitions and requests for
rulings or technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees in fiscal 2004
and $475 in fiscal 2003.
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees during the
last two fiscal years to the registrant's investment adviser
or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant.
Such fees would include consultations regarding the
registrant's retirement plan with respect to its directors.
(e) (1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to
its Chairman for any subsequent new engagements that arise
between regularly scheduled meeting dates provided that any
fees such pre-approved are presented to the audit committee at
its next regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1)
the aggregate amount of all such services provided constitutes
no more than five percent of the total amount of fees paid by
the registrant to it principal accountant during the fiscal
year in which services are provided 2) such services were not
recognized by the registrant at the time of engagement as
non-audit services and 3) such services are promptly brought
to the attention of the audit committee of the registrant and
approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's
annual financial statements billed $45,500 in fiscal 2004 and
$5,475 in fiscal 2003 to the registrant and the registrant's
investment adviser or any entity controlling, controlled by,
or under common control with the adviser that provides ongoing
services to the registrant related to non-audit fees. Those
billings did not include any prohibited non-audit services as
defined by the Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that
were rendered to the registrant's investment adviser, and any
entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to
the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal account's
independence. No such services were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
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 Directors 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
directors, 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
July 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)(NOT APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)