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
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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
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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FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED JULY 31, 2004, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. We used our extensive research and
risk management capabilities to maintain a diversified portfolio of smaller and
locally issued securities that are misunderstood or underappreciated by the
market in general. Such securities frequently offer premium yields substantially
exceeding their actual credit risks. During this period, many of them also
contributed considerable price appreciation as credit spreads tightened.
This combination of strong yields and price gains in many sectors accounts
for the Fund's strong results compared to both the Lehman Brothers Index and the
Lipper Pennsylvania Municipal Debt Fund category. For example, we added electric
utility bonds at attractive prices and yields directly after the August 2003
blackout in the northeastern states. Our analysis concluded that aversion to
energy investments would be short lived, since demand for energy rises as
economic growth accelerates.
The Fund's position in municipal inverse floating rate securities also
contributed to performance. These are highly rated, high yielding, tax-exempt
securities whose interest rates move inversely to short-term rates. We seek to
offset the greater interest rate sensitivity of these bonds by also investing in
premium-coupon, callable bonds whose market prices fluctuate much less than
long-term bond indices.
Over the course of the year, the Fund's allocation to various sectors
changed little. We invested new cash flows in a wide variety of securities, so
the Fund remains broadly diversified by issuer, coupon, maturity and structure.
At the same time, we maintained an emphasis on certain sectors where value often
goes unrecognized. At July 31, the largest of these sectors were tobacco master
settlement agreement (MSA) (25.4% of assets), resource recovery (9.6%), adult
living facilities (9.2%), higher education (8.0%), and hospitals and healthcare
(6.2%).
Tobacco master settlement agreement (MSA) bonds are backed by each state's
(or U.S. territory's) share of the national settlement agreement with major
tobacco manufacturers. With credit ratings of BBB they provide considerably
higher income than other similarly rated bonds. Ongoing litigation in the
tobacco industry led to volatility in the MSA bonds over the past year, with
prices climbing sharply then losing ground in the wake of several court rulings.
Nonetheless, the tobacco companies met their obligations, and these bonds were a
consistent source of high current income for the Fund.
We continue to believe that MSA bonds entail less risk than their credit
rating or price volatility suggest. Although litigation risk will continue to
overhang the tobacco industry,
9 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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we expect MSA bonds to trade similarly to comparable rated bonds as the market
becomes more comfortable with the credit and new issuance dissipates.
In the Healthcare sector, both an improving economy and successful cost
cutting measures helped West Penn-Allegheny Healthcare System realign itself
with financial projections. New senior management at West Penn-Allegheny
successfully renegotiated contracts and has taken other steps to improve
performance, which we believe will continue. By 2004, West Penn-Allegheny
reported operating profits, and the markets responded by sharply increasing the
value of these bonds.
A bond that detracted from performance was one issued by the Lehigh County
General Purpose Authority for KidsPeace--a nationally recognized and accredited
not-for-profit organization. The bonds, which represented less than 2% of Fund
assets, declined in price after a credit rating downgrade in June 2004, which
resulted from below average financial performance in 2003.
The Fund attempts to pay dividends on Class A shares at a constant level.
However there is no assurance it will be able to do so, and the dividend may be
changed at any time without prior notice to shareholders. This practice did not
affect the Fund's investment strategies or per share net asset values, or cause
it to pay any distributions of capital.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until July 31, 2004. In the case of Class A and Class B shares,
performance is measured over a ten-year period. In the case of Class C shares,
performance is measured from inception of the Class on August 29, 1995. The
Fund's performance reflects the deduction of the maximum initial sales charge on
Class A shares, the applicable contingent deferred sales charge on Class B and
Class C shares, and reinvestments of all dividends and capital gains
distributions.
The Fund's performance is compared to the performance of the Lehman
Brothers Municipal Bond Index, an unmanaged index of a broad range of investment
grade municipal bonds that is widely regarded as a measure of the performance of
the general municipal bond market. Index performance reflects the reinvestment
of dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs that follow shows the effect of taxes.
The Fund's performance reflects the effects of Fund business and operating
expenses. While index comparisons may be useful to provide a benchmark for the
Fund's performance, it must be noted that the Fund's investments are not limited
to the securities in the index.
10 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Pennsylvania Municipal Fund (Class A)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Value of Investment Lehman Brothers
Date In Fund Municipal Bond Index
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12/31/1994 $ 9,525 $10,000
03/31/1995 10,213 10,707
06/30/1995 10,455 10,965
09/30/1995 10,657 11,280
12/31/1995 11,139 11,746
03/31/1996 11,022 11,604
06/30/1996 11,089 11,693
07/31/1996 (1) 11,188 11,799
10/31/1996 11,471 12,096
01/31/1997 11,636 12,289
04/30/1997 11,681 12,339
07/31/1997 12,270 13,009
10/31/1997 12,394 13,123
01/31/1998 12,770 13,531
04/30/1998 12,690 13,486
07/31/1998 12,883 13,788
10/31/1998 13,149 14,175
01/31/1999 13,335 14,431
04/30/1999 13,388 14,423
07/31/1999 13,141 14,185
10/31/1999 12,595 13,924
01/31/2000 12,253 13,907
04/30/2000 12,620 14,291
07/31/2000 13,010 14,796
10/31/2000 13,199 15,109
01/31/2001 13,334 15,754
04/30/2001 13,329 15,773
07/31/2001 14,063 16,287
10/31/2001 14,368 16,697
01/31/2002 14,367 16,684
04/30/2002 14,586 16,877
07/31/2002 15,098 17,380
10/31/2002 15,390 17,676
01/31/2003 15,559 17,929
04/30/2003 15,867 18,311
07/31/2003 15,907 18,007
10/31/2003 16,659 18,580
01/31/2004 17,454 19,038
04/30/2004 17,470 18,801
07/31/2004 17,264 19,048
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1-Year 5-Year 10-Year
------ ------ -------
3.37% 4.58% 5.27%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. BECAUSE
CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE 10-YEAR
RETURN FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. SEE PAGE 14 FOR FURTHER INFORMATION.
1. The Fund's fiscal year end changed from 12/31 to 7/31.
11 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Pennsylvania Municipal Fund (Class B)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Value of Investment Lehman Brothers
Date In Fund Municipal Bond Index
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12/31/1994 $10,000 $10,000
03/31/1995 10,701 10,707
06/30/1995 10,935 10,965
09/30/1995 11,126 11,280
12/31/1995 11,606 11,746
03/31/1996 11,463 11,604
06/30/1996 11,511 11,693
07/31/1996 (1) 11,606 11,799
10/31/1996 11,877 12,096
01/31/1997 12,025 12,289
04/30/1997 12,049 12,339
07/31/1997 12,634 13,009
10/31/1997 12,737 13,123
01/31/1998 13,089 13,531
04/30/1998 12,993 13,486
07/31/1998 13,165 13,788
10/31/1998 13,412 14,175
01/31/1999 13,576 14,431
04/30/1999 13,593 14,423
07/31/1999 13,317 14,185
10/31/1999 12,750 13,924
01/31/2000 12,381 13,907
04/30/2000 12,728 14,291
07/31/2000 13,085 14,796
10/31/2000 13,262 15,109
01/31/2001 13,376 15,754
04/30/2001 13,371 15,773
07/31/2001 14,108 16,287
10/31/2001 14,414 16,697
01/31/2002 14,413 16,684
04/30/2002 14,632 16,877
07/31/2002 15,146 17,380
10/31/2002 15,440 17,676
01/31/2003 15,609 17,929
04/30/2003 15,918 18,311
07/31/2003 15,957 18,007
10/31/2003 16,713 18,580
01/31/2004 17,510 19,038
04/30/2004 17,526 18,801
07/31/2004 17,319 19,048
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1-Year 5-Year 10-Year
------ ------ -------
2.71% 4.51% 5.32%
1. The Fund's fiscal year end changed from 12/31 to 7/31.
12 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Pennsylvania Municipal Fund (Class C)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Value of Investment Lehman Brothers
Date In Fund Municipal Bond Index
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08/29/1995 $10,000 $10,000
09/30/1995 10,109 10,063
12/31/1995 10,555 10,479
03/31/1996 10,420 10,353
06/30/1996 10,462 10,432
07/31/1996 (1) 10,539 10,526
10/31/1996 10,794 10,791
01/31/1997 10,917 10,963
04/30/1997 10,939 11,008
07/31/1997 11,470 11,605
10/31/1997 11,564 11,708
01/31/1998 11,893 12,072
04/30/1998 11,796 12,032
07/31/1998 11,952 12,301
10/31/1998 12,177 12,647
01/31/1999 12,336 12,874
04/30/1999 12,352 12,868
07/31/1999 12,101 12,655
10/31/1999 11,576 12,423
01/31/2000 11,250 12,407
04/30/2000 11,555 12,750
07/31/2000 11,890 13,201
10/31/2000 12,040 13,480
01/31/2001 12,140 14,055
04/30/2001 12,113 14,072
07/31/2001 12,757 14,531
10/31/2001 13,008 14,896
01/31/2002 12,983 14,884
04/30/2002 13,156 15,057
07/31/2002 13,593 15,506
10/31/2002 13,818 15,770
01/31/2003 13,954 15,995
04/30/2003 14,205 16,336
07/31/2003 14,213 16,065
10/31/2003 14,857 16,576
01/31/2004 15,537 16,985
04/30/2004 15,510 16,773
07/31/2004 15,312 16,994
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1-Year 5-Year Since Inception (8/29/95)
------ ------ -------------------------
6.71% 4.82% 4.89%
(1) THE FUND CHANGED ITS FISCAL YEAR END FROM DECEMBER 31 TO JULY 31.
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. BECAUSE
CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE 10-YEAR
RETURN FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. SEE PAGE 14 FOR FURTHER INFORMATION.
1. The Fund's fiscal year end changed from 12/31 to 7/31.
13 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
NOTES
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TOTAL RETURNS AND THE ENDING ACCOUNT VALUES IN THE GRAPHS INCLUDE CHANGES IN
SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS IN A
HYPOTHETICAL INVESTMENT FOR THE PERIODS SHOWN. THE FUND'S TOTAL RETURNS SHOWN DO
NOT REFLECT THE DEDUCTION OF INCOME TAXES ON AN INDIVIDUAL'S INVESTMENT. TAXES
MAY REDUCE YOUR ACTUAL INVESTMENT RETURNS ON ANY GAINS YOU MAY REALIZE IF YOU
SELL YOUR SHARES.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
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.
THE FUND'S INVESTMENT STRATEGY AND FOCUS CAN CHANGE OVER TIME. THE MENTION OF
SPECIFIC FUND HOLDINGS DOES NOT CONSTITUTE A RECOMMENDATION BY OPPENHEIMERFUNDS,
INC.
CLASS A shares of the Fund were first publicly offered on 9/18/89. The average
annual total returns are shown net of the applicable 4.75% maximum initial sales
charge.
CLASS B shares of the Fund were first publicly offered on 5/3/93. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A
shares 72 months after purchase, the 10-year return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 8/29/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
14 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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 for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "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 for each class of shares, 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 for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in
15 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
FUND EXPENSES
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the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
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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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Class A Actual $1,000.00 $ 989.10 $4.25
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Class A Hypothetical 1,000.00 1,020.59 4.32
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Class B Actual 1,000.00 985.40 8.00
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Class B Hypothetical 1,000.00 1,016.81 8.12
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Class C Actual 1,000.00 985.30 8.00
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Class C Hypothetical 1,000.00 1,016.81 8.12
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/366
(to reflect the one-half year period). Those expense ratios for the 6-month
period ended July 31, 2004 are as follows:
CLASS EXPENSE RATIOS
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Class A 0.86%
- ---------------------------
Class B 1.62
- ---------------------------
Class C 1.62
16 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS July 31, 2004
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--101.2%
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PENNSYLVANIA--67.7%
$ 20,000 Allegheny County Airport
(Pittsburgh International Airport) 5.250% 01/01/2016 $ 21,015
- -----------------------------------------------------------------------------------------------------------
50,000 Allegheny County HDA (Health Center Devel., Inc.) 6.300 09/01/2013 50,199
- -----------------------------------------------------------------------------------------------------------
1,500,000 Allegheny County HDA (The Covenant at South Hills) 8.625 02/01/2021 1,487,640
- -----------------------------------------------------------------------------------------------------------
180,000 Allegheny County HDA (The Covenant at South Hills) 8.750 02/01/2031 177,989
- -----------------------------------------------------------------------------------------------------------
420,000 Allegheny County HDA
(West Penn Allegheny Health System) 9.250 11/15/2015 471,295
- -----------------------------------------------------------------------------------------------------------
1,100,000 Allegheny County HDA
(West Penn Allegheny Health System) 9.250 11/15/2022 1,234,343
- -----------------------------------------------------------------------------------------------------------
12,640,000 Allegheny County HDA
(West Penn Allegheny Health System) 9.250 11/15/2030 14,183,723
- -----------------------------------------------------------------------------------------------------------
350,000 Allegheny County HDA RITES 1 21.352 2 11/15/2030 560,392
- -----------------------------------------------------------------------------------------------------------
1,900,000 Allegheny County HDA RITES 1 21.352 2 11/15/2030 3,042,128
- -----------------------------------------------------------------------------------------------------------
2,000,000 Allegheny County HEBA (Chatham College) 5.750 11/15/2028 2,049,060
- -----------------------------------------------------------------------------------------------------------
6,945,000 Allegheny County HEBA (Chatham College) 5.750 11/15/2035 7,091,609
- -----------------------------------------------------------------------------------------------------------
1,000,000 Allegheny County HEBA (Chatham College) 5.850 03/01/2022 1,030,470
- -----------------------------------------------------------------------------------------------------------
1,000,000 Allegheny County HEBA (Chatham College) 5.950 03/01/2032 1,016,030
- -----------------------------------------------------------------------------------------------------------
20,000 Allegheny County HEBA (Robert Morris College) 6.200 02/15/2010 20,987
- -----------------------------------------------------------------------------------------------------------
2,110,000 Allegheny County HEBA (Robert Morris College) 6.250 02/15/2026 2,149,710
- -----------------------------------------------------------------------------------------------------------
1,775,000 Allegheny County IDA
(Airport Special Facilities/U S Airways) 3,4 0.000 03/01/2021 399,375
- -----------------------------------------------------------------------------------------------------------
15,000 Allegheny County IDA (Kroger Company) 8.500 05/01/2010 15,051
- -----------------------------------------------------------------------------------------------------------
1,145,000 Allegheny County IDA (Residential Resources) 5.700 09/01/2012 1,126,772
- -----------------------------------------------------------------------------------------------------------
905,000 Allegheny County IDA (Residential Resources) 6.600 09/01/2031 866,510
- -----------------------------------------------------------------------------------------------------------
105,000 Allegheny County IDA (USX Corp.) 6.100 01/15/2018 109,573
- -----------------------------------------------------------------------------------------------------------
10,000 Allegheny County IDA (USX Corp.) 6.100 07/15/2020 10,406
- -----------------------------------------------------------------------------------------------------------
3,520,000 Allegheny County IDA (USX Corp.) 6.700 12/01/2020 3,602,438
- -----------------------------------------------------------------------------------------------------------
50,000 Allegheny County Redevel. Authority (Robinson Mall) 6.875 11/01/2017 52,186
- -----------------------------------------------------------------------------------------------------------
5,000 Allegheny County Residential Finance Authority 5.625 11/01/2023 5,039
- -----------------------------------------------------------------------------------------------------------
10,000 Allegheny County Residential Finance Authority 5.950 11/01/2024 10,498
- -----------------------------------------------------------------------------------------------------------
25,000 Allegheny County Residential Finance Authority 6.250 11/01/2016 26,106
- -----------------------------------------------------------------------------------------------------------
10,000 Allegheny County Residential Finance Authority 6.600 11/01/2014 10,052
- -----------------------------------------------------------------------------------------------------------
8,000,000 Allegheny County Residential Finance Authority 7.000 11/01/2017 8,550,080
- -----------------------------------------------------------------------------------------------------------
75,000 Allegheny County Residential Finance Authority 7.100 05/01/2024 75,275
- -----------------------------------------------------------------------------------------------------------
15,000 Allegheny County Sanitation Authority 6.250 12/01/2014 15,537
- -----------------------------------------------------------------------------------------------------------
9,005,000 Beaver County IDA
(Cleveland Electric Illuminating Company) 7.625 05/01/2025 9,521,887
- -----------------------------------------------------------------------------------------------------------
2,100,000 Beaver County IDA
(Cleveland Electric Illuminating Company) 7.750 07/15/2025 2,244,312
17 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 740,000 Beaver County IDA
(Cleveland Electric Illuminating Company) 7.750% 07/15/2025 $ 790,150
- --------------------------------------------------------------------------------------------------------------
65,000 Beaver County IDA (J. Ray McDermott & Company) 6.800 02/01/2009 56,088
- --------------------------------------------------------------------------------------------------------------
130,000 Beaver County IDA (St. Joe Minerals Corp.) 6.000 05/01/2007 132,990
- --------------------------------------------------------------------------------------------------------------
7,630,000 Beaver County IDA (Toledo Edison Company) 7.625 05/01/2020 8,027,599
- --------------------------------------------------------------------------------------------------------------
2,100,000 Beaver County IDA (Toledo Edison Company) 7.750 05/01/2020 2,263,422
- --------------------------------------------------------------------------------------------------------------
30,000 Beaver County IDA (Toledo Edison Company) 7.750 05/01/2020 32,237
- --------------------------------------------------------------------------------------------------------------
15,000 Bedford County IDA (Brown Group) 7.125 02/01/2009 14,867
- --------------------------------------------------------------------------------------------------------------
800,000 Blair County IDA (Village of PA State) 6.900 01/01/2022 809,312
- --------------------------------------------------------------------------------------------------------------
2,805,000 Blair County IDA (Village of PA State) 7.000 01/01/2034 2,837,706
- --------------------------------------------------------------------------------------------------------------
100,000 Bradford County IDA (International Paper Company) 5.900 12/01/2019 101,484
- --------------------------------------------------------------------------------------------------------------
130,000 Bradford County IDA (International Paper Company) 6.600 03/01/2019 134,632
- --------------------------------------------------------------------------------------------------------------
800,000 Bucks County IDA (Chandler Hall Health Care Facility) 6.300 05/01/2029 738,336
- --------------------------------------------------------------------------------------------------------------
1,000,000 Bucks County IDA (Pennswood Village) 6.000 10/01/2027 1,020,030
- --------------------------------------------------------------------------------------------------------------
2,000,000 Bucks County IDA RITES 1 17.437 2 09/01/2032 2,216,160
- --------------------------------------------------------------------------------------------------------------
480,000 Butler County IDA (Greenview Gardens Apartments) 6.000 07/01/2023 461,366
- --------------------------------------------------------------------------------------------------------------
880,000 Butler County IDA (Greenview Gardens Apartments) 6.250 07/01/2033 839,863
- --------------------------------------------------------------------------------------------------------------
10,000 Cambria County IDA (PA Electric Company) 6.050 11/01/2025 10,632
- --------------------------------------------------------------------------------------------------------------
95,000 Chester County H&EFA (Devereaux Foundation) 6.000 11/01/2019 99,660
- --------------------------------------------------------------------------------------------------------------
7,500,000 Chester County H&EFA (Jenners Pond) 7.625 07/01/2034 7,547,925
- --------------------------------------------------------------------------------------------------------------
750,000 Crawford County HA
(Wesbury United Methodist Community) 6.125 08/15/2019 750,225
- --------------------------------------------------------------------------------------------------------------
145,000 Cumberland County Municipal Authority
(Presbyterian Homes) 6.000 12/01/2017 146,320
- --------------------------------------------------------------------------------------------------------------
135,000 Cumberland County Municipal Authority
(Presbyterian Homes) 6.000 12/01/2026 136,301
- --------------------------------------------------------------------------------------------------------------
6,000,000 Cumberland County Municipal Authority
(Wesley Affiliated Services) 7.250 01/01/2035 6,019,740
- --------------------------------------------------------------------------------------------------------------
90,000 Dauphin County IDA
(Jersey Central Power & Light Company) 7.125 01/01/2009 90,269
- --------------------------------------------------------------------------------------------------------------
10,000 Delaware County Authority
(Crozer-Chester Medical Center) 5.300 12/15/2020 10,219
- --------------------------------------------------------------------------------------------------------------
15,000 Delaware County Authority
(MHSSPA/MAS/MHH/MHP/MCMCSPA Obligated Group) 5.375 11/15/2023 15,535
- --------------------------------------------------------------------------------------------------------------
2,500,000 Delaware County Authority (Neumann College) 6.000 10/01/2031 2,531,100
- --------------------------------------------------------------------------------------------------------------
750,000 Delaware County Authority (White Horse Village) 7.625 07/01/2030 784,905
- --------------------------------------------------------------------------------------------------------------
10,000 Delaware County IDA (American Ref-Fuel Company) 6.100 07/01/2013 10,529
- --------------------------------------------------------------------------------------------------------------
10,000 Delaware County IDA (American Ref-Fuel Company) 6.200 07/01/2019 10,333
- --------------------------------------------------------------------------------------------------------------
100,000 Erie County HA (St. Mary's Home of Erie) 6.000 08/15/2029 105,741
- --------------------------------------------------------------------------------------------------------------
85,000 Erie HEBA (Gannon University) 8.375 06/01/2008 87,882
- --------------------------------------------------------------------------------------------------------------
35,000 Erie HEBA (Mercyhurst College) 5.750 03/15/2013 35,062
18 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 60,000 Erie HEBA (Mercyhurst College) 5.750% 03/15/2020 $ 60,541
- -----------------------------------------------------------------------------------------------------------
2,020,000 Erie HEBA (Mercyhurst College) 5.750 03/15/2020 2,030,565
- -----------------------------------------------------------------------------------------------------------
35,000 Erie HEBA (Mercyhurst College) 5.750 03/15/2023 35,086
- -----------------------------------------------------------------------------------------------------------
5,000 Exeter Township Sewer Authority 6.500 04/01/2008 5,025
- -----------------------------------------------------------------------------------------------------------
55,000 Ferndale Area School District GO 6.750 07/15/2009 55,232
- -----------------------------------------------------------------------------------------------------------
1,000,000 Horsham Industrial & Commercial Devel.
Authority (GF/Pennsylvania Property) 8.375 09/01/2024 931,540
- -----------------------------------------------------------------------------------------------------------
250,000 Jeannette Health Services Authority
(Jeannette District Memorial Hospital) 6.000 11/01/2018 235,305
- -----------------------------------------------------------------------------------------------------------
20,000 Lancaster County Hospital Authority (Masonic Homes) 5.500 11/15/2014 20,620
- -----------------------------------------------------------------------------------------------------------
1,650,000 Lancaster County IDA (Garden Spot Village) 7.625 05/01/2031 1,692,719
- -----------------------------------------------------------------------------------------------------------
5,000,000 Lawrence County IDA (Shenango Presbyterian Center) 7.500 11/15/2031 4,899,750
- -----------------------------------------------------------------------------------------------------------
450,000 Lebanon County Health Facilities Authority
(Pleasant View Retirement Community) 6.625 12/15/2029 445,644
- -----------------------------------------------------------------------------------------------------------
1,000,000 Lehigh County GPA (Bible Fellowship Church Home) 6.000 12/15/2023 931,740
- -----------------------------------------------------------------------------------------------------------
1,010,000 Lehigh County GPA (Bible Fellowship Church Home) 7.625 11/01/2021 1,082,134
- -----------------------------------------------------------------------------------------------------------
750,000 Lehigh County GPA (Bible Fellowship Church Home) 7.750 11/01/2033 801,938
- -----------------------------------------------------------------------------------------------------------
135,000 Lehigh County GPA (Cedar Crest College) 6.600 04/01/2010 135,945
- -----------------------------------------------------------------------------------------------------------
100,000 Lehigh County GPA (Cedar Crest College) 6.650 04/01/2017 105,013
- -----------------------------------------------------------------------------------------------------------
60,000 Lehigh County GPA (Cedar Crest College) 6.700 04/01/2026 62,715
- -----------------------------------------------------------------------------------------------------------
1,485,000 Lehigh County GPA (Kidspeace Obligated Group) 5.800 11/01/2012 1,391,490
- -----------------------------------------------------------------------------------------------------------
7,995,000 Lehigh County GPA (Kidspeace Obligated Group) 6.000 11/01/2018 7,293,679
- -----------------------------------------------------------------------------------------------------------
1,000,000 Lehigh County GPA (Kidspeace Obligated Group) 6.000 11/01/2023 864,720
- -----------------------------------------------------------------------------------------------------------
20,000 Lehigh County GPA (Kidspeace Obligated Group) 6.000 11/01/2023 20,070
- -----------------------------------------------------------------------------------------------------------
20,000 Lehigh County GPA (Lehigh Valley Health Network) 6.000 07/01/2025 20,457
- -----------------------------------------------------------------------------------------------------------
970,000 Lehigh County IDA (PA Power & Light Company) 5.500 02/15/2027 991,476
- -----------------------------------------------------------------------------------------------------------
190,000 Lehigh County IDA (PA Power & Light Company) 6.150 08/01/2029 201,035
- -----------------------------------------------------------------------------------------------------------
590,000 Lehigh County IDA (PA Power & Light Company) 6.400 09/01/2029 603,959
- -----------------------------------------------------------------------------------------------------------
120,000 Lehigh Northampton Airport Authority
(Allentown-Bethlehem International Airport) 5.600 01/01/2023 122,652
- -----------------------------------------------------------------------------------------------------------
10,000 Luzerne County IDA (Pennsylvania Gas & Water Company) 6.050 01/01/2019 10,090
- -----------------------------------------------------------------------------------------------------------
100,000 Luzerne County IDA (Pennsylvania Gas & Water Company) 6.050 01/01/2019 102,332
- -----------------------------------------------------------------------------------------------------------
15,000 Marianna-West Bethlehem Joint Sewer Authority 7.375 11/01/2017 15,020
- -----------------------------------------------------------------------------------------------------------
55,000 McKean County HA (Bradford Hospital) 6.100 10/01/2020 56,003
- -----------------------------------------------------------------------------------------------------------
700,000 Montgomery County HEHA
(Philadelphia Geriatric Center) 7.375 12/01/2030 714,000
- -----------------------------------------------------------------------------------------------------------
50,000 Montgomery County HEHA
(Temple Continuing Care Center) 3,4 6.625 07/01/2019 10,064
- -----------------------------------------------------------------------------------------------------------
3,150,000 Montgomery County HEHA
(Temple Continuing Care Center) 3,4 6.750 07/01/2029 629,717
- -----------------------------------------------------------------------------------------------------------
20,000 Montgomery County HEHA (Waverly Heights) 6.000 01/01/2008 20,020
19 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 1,345,000 Montgomery County IDA (ACTS/BPE Obligated Group) 5.875% 11/15/2022 $ 1,353,971
- -----------------------------------------------------------------------------------------------------------
1,750,000 Montgomery County IDA (Meadowood Corp.) 6.250 12/01/2017 1,636,775
- -----------------------------------------------------------------------------------------------------------
20,000 Montgomery County IDA (Meadowood Corp.) 7.400 12/01/2020 20,262
- -----------------------------------------------------------------------------------------------------------
3,840,000 Montgomery County IDA (Wordsworth Academy) 8.000 09/01/2024 3,790,541
- -----------------------------------------------------------------------------------------------------------
125,000 New Morgan IDA (Browning-Ferris Industries) 6.500 04/01/2019 119,530
- -----------------------------------------------------------------------------------------------------------
810,000 North Penn HHEA (Maple Village) 7.800 10/01/2024 800,636
- -----------------------------------------------------------------------------------------------------------
1,205,000 North Penn HHEA (Maple Village) 8.000 10/01/2032 1,183,635
- -----------------------------------------------------------------------------------------------------------
10,000 Northampton County Higher Education Authority
(Moravian College) 6.200 07/01/2019 10,232
- -----------------------------------------------------------------------------------------------------------
110,000 Northampton County IDA
(Metropolitan Edison Company) 6.100 07/15/2021 116,074
- -----------------------------------------------------------------------------------------------------------
335,000 Northeastern PA HEA (Wilkes University) 5.625 10/01/2018 343,151
- -----------------------------------------------------------------------------------------------------------
4,000,000 Northumberland County IDA (NHS Youth Services) 7.750 02/15/2029 3,943,680
- -----------------------------------------------------------------------------------------------------------
30,000 Northumberland County IDA (Roaring Creek Water) 6.375 10/15/2023 30,548
- -----------------------------------------------------------------------------------------------------------
2,000,000 Ontelaunee Township Municipal Authority 6.250 11/15/2032 2,308,040
- -----------------------------------------------------------------------------------------------------------
10,000 PA Convention Center Authority, Series A 6.750 09/01/2019 10,234
- -----------------------------------------------------------------------------------------------------------
1,400,000 PA Convention Center Authority, Series A 6.750 09/01/2019 1,476,160
- -----------------------------------------------------------------------------------------------------------
2,450,000 PA Convention Center Authority, Series A 6.750 09/01/2019 2,596,020
- -----------------------------------------------------------------------------------------------------------
8,000,000 PA EDFA (30th St. Garage) 5.875 06/01/2033 8,091,600
- -----------------------------------------------------------------------------------------------------------
2,000,000 PA EDFA (Colver) 7.050 12/01/2010 2,058,160
- -----------------------------------------------------------------------------------------------------------
1,500,000 PA EDFA (Colver) 7.125 12/01/2015 1,542,225
- -----------------------------------------------------------------------------------------------------------
8,150,000 PA EDFA (Colver) 7.150 12/01/2018 8,430,931
- -----------------------------------------------------------------------------------------------------------
13,700,000 PA EDFA (National Gypsum Company) 6.125 11/02/2027 13,514,639
- -----------------------------------------------------------------------------------------------------------
5,000,000 PA EDFA (National Gypsum Company) 6.250 11/01/2027 5,003,500
- -----------------------------------------------------------------------------------------------------------
7,000,000 PA EDFA (Northampton Generating) 6.400 01/01/2009 7,145,810
- -----------------------------------------------------------------------------------------------------------
4,950,000 PA EDFA (Northampton Generating) 6.500 01/01/2013 5,004,648
- -----------------------------------------------------------------------------------------------------------
4,500,000 PA EDFA (Northampton Generating) 6.600 01/01/2019 4,537,125
- -----------------------------------------------------------------------------------------------------------
3,000,000 PA EDFA (Northwestern Human Services) 5.250 06/01/2028 2,164,590
- -----------------------------------------------------------------------------------------------------------
15,660,000 PA EDFA (Sun Company) 7.600 12/01/2024 16,234,722
- -----------------------------------------------------------------------------------------------------------
1,500,000 PA HEFA (CA University of PA Student Association) 6.750 09/01/2020 1,588,365
- -----------------------------------------------------------------------------------------------------------
110,000 PA HEFA (CA University of PA Student Association) 6.750 09/01/2032 112,979
- -----------------------------------------------------------------------------------------------------------
30,000 PA HEFA (CA University of PA Student Association) 6.800 09/01/2025 31,062
- -----------------------------------------------------------------------------------------------------------
2,250,000 PA HEFA (College of Science & Agriculture) 5.350 04/15/2028 2,057,310
- -----------------------------------------------------------------------------------------------------------
1,460,000 PA HEFA
(Delaware Valley College of Science and Agriculture) 5.650 04/15/2025 1,427,982
- -----------------------------------------------------------------------------------------------------------
3,210,000 PA HEFA
(Delaware Valley College of Science and Agriculture) 5.800 04/15/2030 3,201,173
- -----------------------------------------------------------------------------------------------------------
3,385,000 PA HEFA
(Delaware Valley College of Science and Agriculture) 5.800 04/15/2033 3,298,344
- -----------------------------------------------------------------------------------------------------------
1,800,000 PA HEFA (Geneva College) 5.375 04/01/2023 1,728,162
- -----------------------------------------------------------------------------------------------------------
860,000 PA HEFA (Geneva College) 5.450 04/01/2018 859,845
20 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 1,000,000 PA HEFA (Geneva College) 6.125% 04/01/2022 $ 1,030,080
- ---------------------------------------------------------------------------------------------------------------------
10,000 PA HEFA (Philadelphia University) 6.100 06/01/2030 10,694
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 PA HEFA (St. Francis University) 6.250 11/01/2018 2,080,220
- ---------------------------------------------------------------------------------------------------------------------
5,000 PA HEFA (Temple University) 7.400 10/01/2010 5,024
- ---------------------------------------------------------------------------------------------------------------------
35,000 PA HEFA (University of PA Health Services) 5.750 01/01/2017 35,886
- ---------------------------------------------------------------------------------------------------------------------
115,000 PA HEFA (University of PA Health Services) 5.750 01/01/2022 117,432
- ---------------------------------------------------------------------------------------------------------------------
10,000 PA HEFA (University of PA Presbyterian Medical Center) 5.875 01/01/2015 10,292
- ---------------------------------------------------------------------------------------------------------------------
25,000 PA HEFA (University of the Arts) 5.750 03/15/2030 25,918
- ---------------------------------------------------------------------------------------------------------------------
125,000 PA HFA (Multifamily FHA Mtg.) 8.200 07/01/2024 125,256
- ---------------------------------------------------------------------------------------------------------------------
165,000 PA HFA (Multifamily Hsg.) 6.000 07/01/2018 112,613
- ---------------------------------------------------------------------------------------------------------------------
2,500,000 PA HFA (Single Family Mtg.) RITES 1 15.648 2 10/01/2020 2,752,450
- ---------------------------------------------------------------------------------------------------------------------
2,500,000 PA HFA (Single Family Mtg.) RITES 1 15.848 2 10/01/2022 2,701,750
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 PA HFA (Single Family Mtg.) RITES 1 16.340 2 04/01/2021 2,196,160
- ---------------------------------------------------------------------------------------------------------------------
2,850,000 PA HFA (Single Family Mtg.) RITES 1 16.648 2 10/01/2022 3,192,969
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 PA HFA (Single Family Mtg.) RITES 1 18.683 2 10/01/2018 2,302,040
- ---------------------------------------------------------------------------------------------------------------------
10,000 PA HFA (Single Family Mtg.), Series 41B 6.300 04/01/2009 10,214
- ---------------------------------------------------------------------------------------------------------------------
25,000 PA HFA (Single Family Mtg.), Series 47 5.700 10/01/2016 25,772
- ---------------------------------------------------------------------------------------------------------------------
910,000 PA HFA (Single Family Mtg.), Series 47 5.700 10/01/2026 925,161
- ---------------------------------------------------------------------------------------------------------------------
500,000 PA HFA (Single Family Mtg.), Series 53A 6.000 10/01/2015 517,900
- ---------------------------------------------------------------------------------------------------------------------
110,000 PA HFA (Single Family Mtg.), Series 53A 6.050 04/01/2018 113,892
- ---------------------------------------------------------------------------------------------------------------------
75,000 PA HFA (Single Family Mtg.), Series 56A 6.050 10/01/2016 75,194
- ---------------------------------------------------------------------------------------------------------------------
2,590,000 PA HFA (Single Family Mtg.), Series 59A 5.750 10/01/2023 2,670,782
- ---------------------------------------------------------------------------------------------------------------------
2,620,000 PA HFA (Single Family Mtg.), Series 59A 5.800 10/01/2029 2,685,605
- ---------------------------------------------------------------------------------------------------------------------
45,000 PA HFA (Single Family Mtg.), Series 60A 5.850 10/01/2027 46,040
- ---------------------------------------------------------------------------------------------------------------------
85,000 PA HFA (Single Family Mtg.), Series 61A 5.500 04/01/2029 86,386
- ---------------------------------------------------------------------------------------------------------------------
35,000 PA HFA (Single Family Mtg.), Series 66A 5.650 04/01/2029 35,543
- ---------------------------------------------------------------------------------------------------------------------
150,000 PA HFA (Single Family Mtg.), Series 67A 5.850 10/01/2018 155,663
- ---------------------------------------------------------------------------------------------------------------------
75,000 PA HFA (Single Family Mtg.), Series 67A 5.900 10/01/2030 76,656
- ---------------------------------------------------------------------------------------------------------------------
180,000 PA HFA (Single Family Mtg.), Series 68A 6.150 10/01/2030 180,477
- ---------------------------------------------------------------------------------------------------------------------
4,740,000 PA HFA (Single Family Mtg.), Series 70A 5.800 04/01/2027 4,883,290
- ---------------------------------------------------------------------------------------------------------------------
50,000 Patterson Township Municipal Authority 5.250 04/15/2007 50,096
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 Philadelphia Airport Authority for Industrial Devel. RITES 1 16.572 2 07/01/2022 2,355,680
- ---------------------------------------------------------------------------------------------------------------------
25,000 Philadelphia Airport System, Series A 5.750 06/15/2010 26,279
- ---------------------------------------------------------------------------------------------------------------------
145,000 Philadelphia Airport System, Series A 6.000 06/15/2015 152,323
- ---------------------------------------------------------------------------------------------------------------------
360,000 Philadelphia Airport System, Series A 6.100 06/15/2025 378,263
- ---------------------------------------------------------------------------------------------------------------------
1,400,000 Philadelphia Authority for Industrial Devel.
Senior Living (Arbor House) 6.100 07/01/2033 1,335,180
- ---------------------------------------------------------------------------------------------------------------------
1,240,000 Philadelphia Authority for Industrial Devel.
Senior Living (Miriam and Robert M. Rieder House) 6.100 07/01/2033 1,182,588
21 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 1,160,000 Philadelphia Authority for Industrial Devel.
Senior Living (Robert Saligman House) 6.100% 07/01/2033 $ 1,106,292
- --------------------------------------------------------------------------------------------------------------------
55,000 Philadelphia Gas Works 5.250 08/01/2015 55,934
- --------------------------------------------------------------------------------------------------------------------
1,780,000 Philadelphia Gas Works RITES 1 15.840 2 08/01/2031 1,847,960
- --------------------------------------------------------------------------------------------------------------------
2,000,000 Philadelphia Gas Works RITES 1 16.581 2 08/01/2021 2,425,160
- --------------------------------------------------------------------------------------------------------------------
1,210,000 Philadelphia H&HEFA
(Centralized Comprehensive Human Services) 7.250 01/01/2021 1,241,726
- --------------------------------------------------------------------------------------------------------------------
30,000 Philadelphia H&HEFA (Chestnut Hill Hospital) 6.375 11/15/2011 30,073
- --------------------------------------------------------------------------------------------------------------------
60,000 Philadelphia H&HEFA (Frankford Hospital) 6.000 06/01/2023 61,960
- --------------------------------------------------------------------------------------------------------------------
1,550,000 Philadelphia H&HEFA (Friends Hospital) 6.200 05/01/2011 1,567,701
- --------------------------------------------------------------------------------------------------------------------
2,085,000 Philadelphia H&HEFA (Jeanes Health System) 6.600 07/01/2010 2,202,010
- --------------------------------------------------------------------------------------------------------------------
635,000 Philadelphia H&HEFA (Jeanes Hospital) 5.875 07/01/2017 647,986
- --------------------------------------------------------------------------------------------------------------------
2,380,000 Philadelphia H&HEFA (Philadelphia Protestant Home) 6.500 07/01/2027 2,381,571
- --------------------------------------------------------------------------------------------------------------------
10,000 Philadelphia H&HEFA (Temple University Hospital) 6.500 11/15/2008 10,764
- --------------------------------------------------------------------------------------------------------------------
3,870,000 Philadelphia IDA (Air Cargo) 7.500 01/01/2025 3,889,969
- --------------------------------------------------------------------------------------------------------------------
75,000 Philadelphia IDA (Baker's Bay Nursing Home Associates) 5.750 08/01/2023 76,300
- --------------------------------------------------------------------------------------------------------------------
450,000 Philadelphia IDA (Cathedral Village) 6.750 04/01/2023 450,756
- --------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia IDA (Cathedral Village) 6.875 04/01/2034 1,005,500
- --------------------------------------------------------------------------------------------------------------------
3,150,000 Philadelphia IDA (First Mtg.-CPAP) 6.125 04/01/2019 2,351,412
- --------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia IDA
(International Educational & Community Project) 5.875 06/01/2022 1,034,250
- --------------------------------------------------------------------------------------------------------------------
25,000 Philadelphia IDA (The Franklin Institute) 5.200 06/15/2018 25,017
- --------------------------------------------------------------------------------------------------------------------
3,425,000 Philadelphia IDA RITES 1 15.840 2 10/01/2026 3,627,692
- --------------------------------------------------------------------------------------------------------------------
15,000 Philadelphia Redevel. Authority (FHA Title I Insured Loan) 6.100 06/01/2017 15,510
- --------------------------------------------------------------------------------------------------------------------
195,000 Philadelphia Redevel. Authority (Multifamily Hsg.) 5.450 02/01/2023 199,068
- --------------------------------------------------------------------------------------------------------------------
2,580,000 Philadelphia Redevel. Authority (Pavilion Apartments) 6.000 10/01/2023 2,479,045
- --------------------------------------------------------------------------------------------------------------------
4,100,000 Philadelphia Redevel. Authority (Pavilion Apartments) 6.250 10/01/2032 3,914,516
- --------------------------------------------------------------------------------------------------------------------
60,000 Philadelphia School District GO 5.375 04/01/2027 64,744
- --------------------------------------------------------------------------------------------------------------------
230,000 Philadelphia School District GO 5.500 09/01/2025 241,930
- --------------------------------------------------------------------------------------------------------------------
2,000,000 Philadelphia School District GO RITES 1 17.854 2 08/01/2022 2,607,560
- --------------------------------------------------------------------------------------------------------------------
20,000 Pittsburgh URA (Oliver Garage) 5.450 06/01/2028 20,420
- --------------------------------------------------------------------------------------------------------------------
40,000 Pittsburgh URA Mtg., Series A 5.650 10/01/2024 40,358
- --------------------------------------------------------------------------------------------------------------------
30,000 Pittsburgh URA Mtg., Series A 5.650 10/01/2024 30,269
- --------------------------------------------------------------------------------------------------------------------
70,000 Pittsburgh URA Mtg., Series A 6.050 10/01/2026 71,881
- --------------------------------------------------------------------------------------------------------------------
40,000 Pittsburgh URA Mtg., Series A 7.250 02/01/2024 40,040
- --------------------------------------------------------------------------------------------------------------------
10,000 Pittsburgh URA Mtg., Series C 5.700 04/01/2030 10,162
- --------------------------------------------------------------------------------------------------------------------
455,000 Pittsburgh URA Mtg., Series C 5.950 10/01/2029 467,954
- --------------------------------------------------------------------------------------------------------------------
25,000 Pittsburgh URA Mtg., Series C 7.125 08/01/2013 25,030
- --------------------------------------------------------------------------------------------------------------------
2,000,000 Sayre Health Care Facilities (Guthrie Healthcare System) 7.125 12/01/2031 2,283,240
- --------------------------------------------------------------------------------------------------------------------
95,000 St. Mary Hospital Authority (Catholic Health Initiatives) 5.000 12/01/2028 97,252
22 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 330,000 Union County Hospital Authority
(Evangelical Community Hospital) 5.875% 07/01/2023 $ 331,531
- ------------------------------------------------------------------------------------------------------------------
150,000 Warren County Hospital Authority
(Warren General Hospital) 6.900 04/01/2011 153,194
- ------------------------------------------------------------------------------------------------------------------
750,000 Washington Township Municipal Authority 5.875 12/15/2023 754,860
- ------------------------------------------------------------------------------------------------------------------
2,500,000 Washington Township Municipal Authority 6.000 12/15/2033 2,499,800
- ------------------------------------------------------------------------------------------------------------------
1,000,000 West Cornwall Township Municipal Authority
(Elizabethtown College) 6.000 12/15/2022 1,026,550
- ------------------------------------------------------------------------------------------------------------------
300,000 West Shore Area Hospital Authority (Holy Spirit Hospital) 6.250 01/01/2032 305,586
- ------------------------------------------------------------------------------------------------------------------
500,000 Westmoreland County IDA
(Redstone Health Care Facilities) 8.000 11/15/2023 535,090
- ------------------------------------------------------------------------------------------------------------------
185,000 Westmoreland County IDA (Westmoreland Hospital) 6.000 07/01/2022 187,429
- ------------------------------------------------------------------------------------------------------------------
25,000 York County HA (York Hospital) 5.500 07/01/2008 25,330
- ------------------------------------------------------------------------------------------------------------------
10,000 York County IDA (PSEG Power) 5.500 09/01/2020 10,008
- ------------------------------------------------------------------------------------------------------------------
35,000 York Hsg. Corp. Mtg., Series A 6.875 11/01/2009 35,049
-----------
313,648,471
- ------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--33.5%
1,000,000 Guam EDA (TASC) 5.400 05/15/2031 869,670
- ------------------------------------------------------------------------------------------------------------------
2,980,000 Guam EDA (TASC) 5.500 05/15/2041 2,463,745
- ------------------------------------------------------------------------------------------------------------------
60,000 Northern Mariana Islands, Series A 6.000 06/01/2014 64,003
- ------------------------------------------------------------------------------------------------------------------
1,435,000 Northern Mariana Islands, Series A 6.600 03/15/2028 1,508,314
- ------------------------------------------------------------------------------------------------------------------
8,100,000 Northern Mariana Islands, Series A 6.750 10/01/2033 8,172,171
- ------------------------------------------------------------------------------------------------------------------
49,635,000 Puerto Rico Children's Trust Fund (TASC) 5.375 05/15/2033 43,357,165
- ------------------------------------------------------------------------------------------------------------------
52,345,000 Puerto Rico Children's Trust Fund (TASC) 5.500 05/15/2039 43,698,653
- ------------------------------------------------------------------------------------------------------------------
32,485,000 Puerto Rico Children's Trust Fund (TASC) 5.625 05/15/2043 27,116,854
- ------------------------------------------------------------------------------------------------------------------
5,000 Puerto Rico Infrastructure 7.500 07/01/2009 5,104
- ------------------------------------------------------------------------------------------------------------------
8,980,000 Puerto Rico Port Authority (American Airlines), Series A 6.250 06/01/2026 6,041,026
- ------------------------------------------------------------------------------------------------------------------
115,000 Puerto Rico Port Authority, Series D 7.000 07/01/2014 117,496
- ------------------------------------------------------------------------------------------------------------------
40,000 Puerto Rico Urban Renewal & Hsg. Corp. 7.875 10/01/2004 40,233
- ------------------------------------------------------------------------------------------------------------------
200,000 University of V.I. , Series A 5.250 12/01/2024 200,540
- ------------------------------------------------------------------------------------------------------------------
6,645,000 V.I. Government Refinery Facilities (Hovensa Coker) 6.500 07/01/2021 7,087,623
- ------------------------------------------------------------------------------------------------------------------
4,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 4,265,080
- ------------------------------------------------------------------------------------------------------------------
5,000,000 V.I. Public Finance Authority (Hovensa Refinery) 6.125 07/01/2022 5,202,850
- ------------------------------------------------------------------------------------------------------------------
3,250,000 V.I. Public Finance Authority ROLs 1 16.185 2 10/01/2024 3,383,380
- ------------------------------------------------------------------------------------------------------------------
45,000 V.I. Tobacco Settlement Financing Corp. (TASC) 5.000 05/15/2021 39,304
- ------------------------------------------------------------------------------------------------------------------
1,975,000 V.I. Tobacco Settlement Financing Corp. (TASC) 5.000 05/15/2031 1,617,240
------------
155,250,451
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $462,892,593)--101.2% 468,898,922
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(1.2) (5,621,263)
------------
NET ASSETS--100.0% $463,277,659
============
23 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Illiquid security. See Note 5 of Notes to Financial Statements.
2. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
3. Issue is in default. See Note 1 of Notes to Financial Statements.
4. Non-income-accruing security.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ACTS Adult Communities Total Services HEHA Higher Education and Health Authority
BPE Brittany Pointe Estates HFA Housing Finance Agency/Authority
CPAP Crime Prevention Association of HHEA Health, Hospital and Education
Philadelphia Authority
EDA Economic Development Authority IDA Industrial Development Agency
EDFA Economic Development Finance MAS Mercy Adult Services
Authority MCMCSPA Mercy Catholic Medical Center of
FHA Federal Housing Agency Southeastern PA
GO General Obligation MHH Mercy Haverford Hospital
GPA General Purpose Authority MHP Mercy Health Plan
H&EFA Health and Educational Facilities MHSSPA Mercy Health System of Southeastern
Authority PA
H&HEFA Hospitals and Higher Education PSEG Public Service Enterprise Group
Facilities Authority RITES Residual Interest Tax Exempt Security
HA Hospital Authority ROLs Residual Option Longs
HDA Hospital Development Authority TASC Tobacco Settlement Asset-Backed Bonds
HEA Hospital and Education Authority URA Urban Redevelopment Authority
HEBA Higher Education Building Authority V.I. United States Virgin Islands
HEFA Higher Education Facilities Authority
24 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS July 31, 2004 / Unaudited
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY VALUE PERCENT
- -------------------------------------------------------------------------------
Tobacco Settlements $119,162,631 25.4%
Resource Recovery 45,094,013 9.6
Adult Living Facilities 43,042,287 9.2
Higher Education 37,479,406 8.0
Hospital/Health Care 29,091,530 6.2
Single Family Housing 26,339,199 5.6
Not-for-Profit Organization 25,179,867 5.4
Electric Utilities 22,980,508 4.9
Pollution Control 22,333,512 4.8
Manufacturing, Durable Goods 18,589,094 4.0
Multifamily Housing 11,841,375 2.5
General Obligation 11,012,320 2.3
Marine/Aviation Facilities 8,635,994 1.8
Special Tax 8,550,080 1.8
Parking Fee Revenue 8,112,020 1.7
Sales Tax Revenue 7,470,898 1.6
Airlines 6,440,401 1.4
Sewer Utilities 5,648,378 1.2
Gas Utilities 4,329,054 0.9
Municipal Leases 3,627,692 0.8
Water Utilities 2,359,130 0.5
Education 1,276,180 0.3
Paper, Containers & Packaging 236,116 0.1
Hotels, Restaurants & Leisure 52,186 --
Manufacturing, Non-Durable Goods 15,051 --
---------------------------
Total $468,898,922 100.0%
===========================
25 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS July 31, 2004 / Unaudited
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY RATING CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATING PERCENT
- --------------------------------------------------------------------------------
AAA 5.8%
AA 6.4
A 3.2
BBB 62.4
BB 3.1
B 5.4
CCC 1.3
C 0.1
Not Rated 12.3
------
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.
26 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2004
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------
Investments, at value (cost $462,892,593)--see accompanying statement of investments $ 468,898,922
- -----------------------------------------------------------------------------------------------------
Cash 468,754
- -----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 8,121,787
Shares of beneficial interest sold 933,516
Investments sold 877,035
Other 9,263
--------------
Total assets 479,309,277
- -----------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Notes payable to bank (interest rate 2.1200% at July 31, 2004) 14,600,000
Shares of beneficial interest redeemed 529,851
Investments purchased 388,241
Dividends 305,901
Distribution and service plan fees 56,922
Shareholder communications 46,580
Trustees' compensation 40,147
Transfer and shareholder servicing agent fees 21,025
Other 42,951
--------------
Total liabilities 16,031,618
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 463,277,659
==============
- -----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------
Paid-in capital $ 459,337,445
- -----------------------------------------------------------------------------------------------------
Accumulated net investment income 785,504
- -----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (2,851,619)
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 6,006,329
--------------
NET ASSETS $ 463,277,659
==============
27 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $229,450,389
and 19,506,328 shares of beneficial interest outstanding) $11.76
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $12.35
- ------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $157,337,771 and 13,379,611 shares
of beneficial interest outstanding) $11.76
- ------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $76,489,499 and 6,509,975 shares
of beneficial interest outstanding) $11.75
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENT OF OPERATIONS For the Period Ended July 31, 2004
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------
Interest $30,436,962
- -----------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------
Management fees 2,465,343
- -----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 296,350
Class B 1,411,332
Class C 675,017
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 103,761
Class B 90,505
Class C 45,967
- -----------------------------------------------------------------------------------
Shareholder communications:
Class A 22,326
Class B 5,472
Class C 4,400
- -----------------------------------------------------------------------------------
Interest expense 329,908
- -----------------------------------------------------------------------------------
Custodian fees and expenses 34,589
- -----------------------------------------------------------------------------------
Trustees' compensation 21,405
- -----------------------------------------------------------------------------------
Other 62,144
------------
Total expenses 5,568,519
Less reduction to custodian expenses (1,180)
Less payments and waivers of expenses (738)
------------
Net expenses 5,566,601
- -----------------------------------------------------------------------------------
NET INVESTMENT INCOME 24,870,361
- -----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- -----------------------------------------------------------------------------------
Net realized loss on investments (530,650)
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 7,584,109
- -----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $31,923,820
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2004 2003
- -------------------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------------------
Net investment income $24,870,361 $20,547,045
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (530,650) 2,444,605
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 7,584,109 (7,146,660)
------------------------------
Net increase in net assets resulting from operations 31,923,820 15,844,990
- -------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (12,179,580) (10,349,999)
Class B (7,846,660) (6,656,148)
Class C (3,754,519) (3,154,016)
- -------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 41,101,968 41,848,794
Class B 7,719,115 46,875,679
Class C 5,391,284 23,631,773
- -------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------
Total increase 62,355,428 108,041,073
- -------------------------------------------------------------------------------------------------------------
Beginning of period 400,922,231 292,881,158
------------------------------
End of period (including accumulated net investment income
(loss) of $785,504 and $(304,098), respectively) $463,277,659 $400,922,231
==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $11.48 $11.57 $11.46 $11.28 $12.08
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .73 .75 .70 .67 .67
Net realized and unrealized gain (loss) .25 (.11) .11 .21 (.81)
-------------------------------------------------------------
Total from investment operations .98 .64 .81 .88 (.14)
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.70) (.73) (.70) (.70) (.66)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.76 $11.48 $11.57 $11.46 $11.28
=============================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 8.53% 5.36% 7.36% 8.10% (1.00)%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $229,450 $184,638 $144,592 $100,222 $64,336
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $211,061 $172,228 $120,251 $ 77,048 $67,252
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.01% 6.11% 6.03% 5.84% 5.93%
Total expenses 0.86% 0.86% 0.85% 0.94% 1.10%
Expenses after payments and waivers and
reduction to custodian expenses N/A 3,4 N/A 3 0.82% 5 0.87% 5 0.93% 5
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 37% 33% 39% 58% 98%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED JULY 31, 2004 2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $11.48 $11.57 $11.46 $11.27 $12.07
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .63 .65 .62 .59 .58
Net realized and unrealized gain (loss) .25 (.11) .11 .22 (.81)
---------------------------------------------------------------------
Total from investment operations .88 .54 .73 .81 (.23)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.60) (.63) (.62) (.62) (.57)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.76 $11.48 $11.57 $11.46 $11.27
=====================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 7.71% 4.56% 6.55% 7.40% (1.75)%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $157,338 $146,369 $101,126 $52,926 $21,696
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $156,689 $127,280 $ 75,772 $32,037 $21,368
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.26% 5.34% 5.26% 5.03% 5.16%
Total expenses 1.62% 1.63% 1.61% 1.68% 1.96%
Expenses after payments and waivers and
reduction to custodian expenses N/A 3,4 N/A 3 1.58% 5 1.62% 5 1.68% 5
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 37% 33% 39% 58% 98%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
CLASS C YEAR ENDED JULY 31, 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $11.47 $11.56 $11.45 $11.27 $12.07
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .63 .65 .61 .57 .57
Net realized and unrealized gain (loss) .25 (.11) .12 .23 (.80)
-------------------------------------------------------------
Total from investment operations .88 .54 .73 .80 (.23)
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.60) (.63) (.62) (.62) (.57)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.75 $11.47 $11.56 $11.45 $11.27
=============================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 7.71% 4.57% 6.55% 7.30% (1.75)%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $76,489 $69,916 $47,163 $19,494 $6,607
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $74,956 $60,202 $33,327 $10,913 $5,542
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.25% 5.34% 5.26% 5.01% 5.16%
Total expenses 1.63% 1.63% 1.61% 1.68% 1.95%
Expenses after payments and waivers and
reduction to custodian expenses N/A 3,4 N/A 3 1.58% 5 1.62% 5 1.68% 5
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 37% 33% 39% 58% 98%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B 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. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. 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.
Foreign and domestic 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 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).
34| OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
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.
Inverse floaters amount to $35,211,481 as of July 31, 2004. Including the effect
of leverage, inverse floaters represent 19.86% of the Fund's total assets as of
July 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 July 31, 2004, securities with an aggregate
market value of $1,039,156, representing 0.22% 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.
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 and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES
- --------------------------------------------------------------------------------
$1,353,456 $-- $2,851,619 $6,006,329
1. As of July 31, 2004, the Fund had $1,561,504 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of July 31, 2004, details
of the capital loss carryforwards were as follows:
35 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
EXPIRING
------------------------
2009 $ 195,858
2010 1,365,646
----------
Total $1,561,504
==========
2. As of July 31, 2004, the Fund had $1,290,115 of post-October losses available
to offset future realized capital gains, if any. Such losses, if unutilized,
will expire in 2013.
3. During the fiscal year ended July 31, 2004, the Fund utilized $759,465 of
capital loss carryforward to offset capital gains realized in that fiscal year.
4. During the fiscal year ended July 31, 2003, the Fund utilized $2,261,627 of
capital loss carryforward to offset capital gains realized in that fiscal year.
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.
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:
Exempt-interest dividends $23,780,759 $20,160,163
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of July 31, 2004 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $ 462,892,593
=============
Gross unrealized appreciation $ 16,682,178
Gross unrealized depreciation (10,675,849)
-------------
Net unrealized appreciation $ 6,006,329
=============
- --------------------------------------------------------------------------------
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 year ended July 31,
2004, the Fund's projected benefit obligations were increased by $8,835 and
payments of $3,033 were made to retired trustees, resulting in an accumulated
liability of $32,063 as of July 31, 2004.
36 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance 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.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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:
YEAR ENDED JULY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------
CLASS A
Sold 6,348,845 $ 75,835,815 5,485,109 $ 64,107,249
Dividends and/or
distributions reinvested 552,950 6,600,738 498,875 5,832,342
Redeemed (3,477,589) (41,334,585) (2,400,518) (28,090,797)
-------------------------------------------------------------------
Net increase 3,424,206 $ 41,101,968 3,583,466 $ 41,848,794
===================================================================
37 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
YEAR ENDED JULY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------
CLASS B
Sold 2,430,805 $ 29,026,035 4,839,117 $ 56,581,145
Dividends and/or
distributions reinvested 315,813 3,768,477 291,066 3,402,315
Redeemed (2,119,775) (25,075,397) (1,121,467) (13,107,781)
-------------------------------------------------------------------
Net increase 626,843 $ 7,719,115 4,008,716 $ 46,875,679
===================================================================
- -------------------------------------------------------------------------------------------------
CLASS C
Sold 2,039,798 $ 24,542,492 3,007,339 $ 35,159,594
Dividends and/or
distributions reinvested 199,041 2,373,352 182,644 2,133,402
Redeemed (1,825,116) (21,524,560) (1,174,699) (13,661,223)
-------------------------------------------------------------------
Net increase 413,723 $ 5,391,284 2,015,284 $ 23,631,773
===================================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended July 31, 2004, were $183,663,316
and $153,917,375, respectively.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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 $237,867
to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
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 all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of
38 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
their customers that hold Class A shares. Any unreimbursed expenses the
Distributor incurs with respect to Class A shares in any fiscal year cannot be
recovered in subsequent years. Fees incurred by the Fund under the Plan are
detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
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 those 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 and
Class C shares. The Distributor also receives a service fee of up to 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 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 July 31, 2004 for Class B and Class C shares were $5,275,705 and $1,021,576,
respectively. Fees incurred by the Fund under the plans are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
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
RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ---------------------------------------------------------------------------------------
July 31, 2004 $285,333 $2,555 $425,206 $18,275
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. OFS has voluntarily agreed to limit transfer
and shareholder servicing agent fees for all classes to 0.35% of average annual
net assets per class. During the year ended July 31, 2004, OFS waived $642, $36
and $60 for Class A, Class B and Class C shares, respectively. This undertaking
may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. 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 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 July 31, 2004 was
$35,211,481, which represents 7.60% of the Fund's net assets.
39 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
6. BANK BORROWINGS
The Fund may borrow up to one third of its total assets from a bank to purchase
portfolio securities, to meet redemption obligations 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 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 $14,600,000 at July 31, 2004 at an
interest rate of 2.12%. For the year ended July 31, 2004, the average monthly
loan balance was $18,095,873 at an average daily interest rate of 1.777%. The
Fund had gross borrowings and gross loan repayments of $143,200,000 and
$148,800,000, respectively, during the year ended July 31, 2004. The maximum
amount of borrowings outstanding at any month-end was $24,900,000. The Fund paid
commitment fees of $3,680 and interest of $325,491 during the year ended July
31, 2004.
- --------------------------------------------------------------------------------
7. 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") including
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 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.
40 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER MULTI-STATE MUNICIPAL TRUST:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Pennsylvania Municipal Fund, (one of the portfolios constituting the
Oppenheimer Multi-State Municipal Trust) 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 and brokers or by other appropriate auditing procedures where replies
from brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Pennsylvania Municipal Fund 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
41 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
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 eligible for the corporate dividend-received deduction. The dividends were
derived from interest on municipal bonds and are not subject to federal income
taxes. To the extent a shareholder is subject to any state or local tax laws,
some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
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.
42 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD
FUND, LENGTH OF SERVICE, AGE BY TRUSTEE; NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL,
TRUSTEES CO 80112-3924. EACH TRUSTEE 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 director (since
Chairman of the Board 2002) of Danielson Holding Corp. Formerly a director of Weyerhaeuser Corp.
of Trustees (since 2003); (1999-April 2004), Caterpillar, Inc. (1993-December 2002), ConAgra Foods
Trustee (since 1993) (1993-2001), Texas Instruments (1993-2001) and FMC Corporation (1993-2001).
Age: 73 Oversees 25 portfolios in the OppenheimerFunds
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 35 portfolios in
Trustee (since 1993) the OppenheimerFunds complex.
Age: 71
PHILLIP A. GRIFFITHS, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J.,
Trustee (since 1999) a director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward
Age: 65 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 Corp. (privately-held
Trustee (since 2002) financial adviser); Managing Director (since January 2002) Carmona Motley, Inc.
Age: 52 (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. (electric utility
Trustee (since 1989) holding company); formerly a director of Prime Retail, Inc. (real estate investment
Age: 77 trust) and Dominion Energy, Inc. (electric power and oil & gas producer),
President and Chief Executive Officer of The Conference Board, Inc. (interna-
tional 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 estate manager); a
Trustee (since 1993) director of OffitBank; formerly Trustee, Financial Accounting Foundation (FASB
Age: 74 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. (corporate governance
Trustee (since 1989) consulting and executive recruiting); a Life Trustee of International House
Age: 72 (non-profit educational organization); a former trustee of The Historical Society
of the Town of Greenwich. Oversees 25 portfolios in the OppenheimerFunds
complex.
43 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
DONALD W. SPIRO, Chairman Emeritus (since January 1991) of the Manager. Formerly a director
Vice Chairman of the (January 1969-August 1999) of the Manager. Oversees 25 portfolios in the
Board of Trustees, OppenheimerFunds complex.
Trustee (since 1989)
Age: 78
- -----------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL CENTER, 225
AND OFFICER 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 2001) and President
President and Trustee (since September 2000) of the Manager; President and a director or trustee
(since 2001) of other Oppenheimer funds; President and a director (since July 2001) of
Age: 55 Oppenheimer Acquisition Corp. (the Manager's parent holding company) and
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 MR.
WIXTED AND MR. VANDEHEY, 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924, AND
FOR MR. FIELDING, 350 LINDEN OAKS, ROCHESTER, NY 14625. EACH OFFICER SERVES FOR AN
ANNUAL TERM OR UNTIL HIS OR HER EARLIER RESIGNATION, DEATH OR REMOVAL.
RONALD H. FIELDING, Senior Vice President of the Manager since January 1996; Chairman of the
Vice President (since 2002) Rochester Division of the Manager since January 1996; an officer of 10 portfolios
Age: 55 in the OppenheimerFunds complex.
44 | OPPENHEIMER PENNSYLVANIA MUNICIPAL FUND
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager;
Treasurer (since 1999) Treasurer of HarbourView Asset Management Corporation, Shareholder Financial
Age: 44 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 Counsel (since
Secretary (since 2001) February 2002) of the Manager; General Counsel and a director (since November
Age: 56 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 March 2004) of the
Vice President and Chief Manager; Vice President (since June 1983) of OppenheimerFunds Distributor,
Compliance Officer Inc., Centennial Asset Management Corporation and Shareholder Services, Inc.
(since 2004) Formerly (until February 2004) Vice President and Director of Internal Audit of
Age: 53 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 TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST.
45 | 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 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" Trustee 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 $18,000 in fiscal 2004 and
$15,000 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 $83 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
$5,083 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 trustees has
considered whether the provision of non-audit services that
were rendered to the registrant's investment adviser, and any
entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to
the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal 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 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
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)