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
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OPPENHEIMER MULTI-STATE MUNICIPAL TRUST
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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
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: JULY 31
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Date of reporting period: 07/31/2006
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ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO]
OPPENHEIMER
NEW JERSEY
MUNICIPAL FUND
JULY 31, 2006, AS RESTATED
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Oppenheimer Management
NEW JERSEY Commentaries
MUNICIPAL FUND and
Annual Report
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MANAGEMENT COMMENTARIES
Market Recap and Outlook
Listing of Top Holdings
ANNUAL REPORT [GRAPHIC]
Fund Performance Discussion
Listing of Investments
Financial Statements
"IT'S A GREAT HONOR TO WIN INDUSTRY AWARDS--AND OUR INVESTMENT TEAM
HAS WON MANY ACROSS THE YEARS--BUT THE REAL REWARD HAS COME FROM
USING OUR CONTRARIAN, VALUE-BASED 'ROCHESTER STYLE' OF FUND
MANAGEMENT TO CREATE TAX-ADVANTAGED INCOME FOR INVESTORS."
- RONALD H. FIELDING, Chief Strategist, Senior Vice President
and Senior Portfolio Manager, OPPENHEIMERFUNDS/ROCHESTER
[LOGO] OPPENHEIMERFUNDS(R)
The Right Way to Invest
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN INDUSTRIES 1
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Tobacco Settlement Payments 15.8%
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Education 14.0
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Hospital/Health Care 8.0
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Airlines 7.4
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Marine/Aviation Facilities 6.8
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Water Utilities 5.8
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Higher Education 5.7
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Municipal Leases 5.4
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Adult Living Facilities 4.8
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General Obligation 4.6
Portfolio holdings and allocations are subject to change. Restated percentages
are as of July 31, 2006, and are based on the total market value of investments.
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CREDIT ALLOCATION 1
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
AAA 20.2%
AA 18.8
A 3.9
BBB 43.2
BB 2.4
B 4.7
CCC 2.2
Not Rated 4.6
Portfolio holdings and allocations are subject to change. Restated percentages
are as of July 31, 2006, and are dollar-weighted based on the total market value
of investments. As of that date, no securities held by the Fund were rated lower
than CCC. Securities rated by any rating organization are included in the
equivalent Standard & Poor's rating category. The allocation includes rated
securities and those not rated by a national rating organization but to which
the ratings above have been assigned by the Manager for internal purposes as
being comparable, in the Manager's judgment, to securities rated by a rating
agency in the same category.
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1. Restated. For information, please refer to Note 9 to the Fund's Financial
Statements included within.
11 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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, 2006, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. 1 Across the past 12 months, the
Fund performed extremely well for shareholders seeking tax-free income as its
yield compared very favorably to those earned by its competitors and by other
fixed income investments. As of July 31, 2006, the Fund's Class A shares
produced a distribution yield of 4.45% without sales charges. Lipper Analytical
Services, Inc., an independent mutual fund rating service, reported an average
distribution yield of 3.65% among the 53 funds in its New Jersey Municipal Debt
Funds category as of the same date. 2 The Fund's holdings represent a wide
variety of industry sectors and credit qualities, and tax-free income generated
by this diverse portfolio made up 100% of the Fund's positive total return for
the period. Strong asset growth fueled the Fund's strategy of building
diversification, and by the end of the report period the number of holdings in
the Fund rose more that 50% from a year earlier.
The Fund's income-oriented approach continued to provide significant
benefit to our investors in this report period. In the year ended July 31, 2006,
the Fund's Class A shares generated a total return of 3.93% without sales charge
(-1.00% with sales charge). By comparison, its primary benchmark, the Lehman
Brothers Municipal Bond Index, produced a total return of 2.55% for the period.
3 In the 12 months ended July 31, 2006, distributions totaled 58.8 cents per
Class A share. Trends in the municipal bond market created dividend pressure
midway through the year, and the monthly distribution rate, which had held
steady at $0.052 per Class A share through February, had to be reduced by $0.007
by March and by $0.001 by July. Distributions for other share classes were
adjusted accordingly. This reduction is not related to the Fund's net asset
value per share. Importantly, this dividend reduction was not the result from
any defaults of bonds in the Fund's portfolio.
1. Percentages of the Fund's portfolio referred to in this discussion have been
restated for the reasons discussed in Note 9 to the Fund's Financial Statements
included within.
2. Lipper Analytical Services, Inc. Lipper calculations do not include sales
charges which, if included, would reduce results.
3. The Lehman Brothers Municipal Bond Index is an unmanaged index of a broad
range of investment-grade municipal bonds. The index cannot be purchased
directly by investors. Index performance is shown for illustrative purposes only
and does not predict or depict the performance of a fund.
12 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
In this period, the prices of lower-rated municipal bonds have increased
relative to prices of higher-grade bonds. This condition, known as "credit
spread tightening," has contributed to strong performance in credit-sensitive
areas of our portfolios, including airlines (7.4% of our holdings as of July 31,
2006), higher education (5.7%), and adult living facilities (4.8%). For example,
bonds backed by payments from American Airlines and Continental Airlines
constitute the vast majority of the Fund's holdings in the airline sector and,
in aggregate, contributed to total return in this report period. These holdings
have generally increased in price while generating very attractive yields. In
the past year, growing passenger traffic, capacity control and increased fares
have helped these carriers stabilize their financial picture. Both American and
Continental were profitable in the second quarter despite sharply rising fuel
costs in this report period, and analysts now expect some carriers to post
strong full-year results. We believe that our holdings in the airline sector
demonstrate the benefits of in-depth research, broad diversification across and
within sectors, and professional portfolio management.
During this period, the Fund's holdings in Master Settlement Agreement
("MSA") tobacco-backed bonds, which accounted for 15.8% of Fund investments as
of July 31, 2006, have also contributed strongly to the Fund's yield and total
return performance. MSA bonds are backed by the issuing State's (or U.S.
territory's) share of proceeds from a national litigation settlement with
tobacco manufacturers.
The litigation environment in the past 12 months has continued to improve
for the tobacco industry and, by extension, for MSA bonds. On December 15, 2005,
the Illinois Supreme Court reversed a $10.1 billion judgment against Philip
Morris USA that had been awarded by a lower court in 2003. Near the end of the
period the Florida Supreme Court upheld an appellate court's reversal of a $145
billion judgment against cigarette manufacturers in the long-running Engle case.
An action brought by the U.S. government against the tobacco industry is still
pending, but we believe that final resolution of this matter will not carry
negative consequences for the Fund's MSA bonds.
MSA bond prices rose early in the report period amid widespread market
speculation that these types of bonds might be "pre-refunded" by their issuers.
In a pre-refunding, a municipality issues a new bond whose proceeds are escrowed
in U.S. Government bonds and earmarked to pay off another previously issued--but
not yet callable--municipal bond. When an outstanding bond is pre-refunded, its
credit quality improves and its price generally rises significantly. This tends
to drive up the prices of other tobacco-backed bonds. While the Fund's holdings
in MSA-backed bonds were not pre-refunded in this report period, their prices
improved as the State of Iowa and various New York and
13 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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Northern California counties pre-refunded bonds they had issued. As a result,
the Fund's MSA-backed bonds contributed positively to total performance in this
report period. Pre-refunding of MSA-backed tobacco bonds provides a particularly
good example of how our yield-oriented investment strategy can result in both
yield and price appreciation for individual bonds, generating attractive total
return.
The Fund also benefited when Fairleigh Dickinson University pre-refunded
some low-rated bonds we held in the portfolio. Growing enrollment, consistently
positive operating margins (in part the result of highly effective management
controls) and more lucrative fund raising had helped the university raise its
credit profile. This situation enabled Fairleigh Dickinson to pre-refund some
bonds in this report period, which contributed favorably to Fund performance.
The shutdown of non-essential government services in New Jersey in July
2006 led ratings agencies to cast a wary eye on the state's financial situation.
In the end, the budget standoff responsible for the shutdown was resolved with a
1 percentage point increase in sales tax. The state's credit ratings remained
unchanged in this report period, all scheduled debt service payments were made,
and no material price impact on New Jersey general obligation or appropriation
debt was observed. The sales tax increase is expected to generate an additional
$600 million for the state budget, and we believe the state is poised to take
the necessary steps to balance its budget, now that the sales tax dispute has
been resolved.
Also during this report period, financial difficulties in the Commonwealth
of Puerto Rico led Moody's Investors Services and Standard & Poor's to issue
downgrades on government-issued bonds. While bonds issued by Puerto Rico
underperformed as prices were weakened by the broader market's reaction to
government overspending and budget deficits, we believe that the government's
more recent decisions to raise taxes and reinforce its financial structure will
ultimately strengthen municipal bonds that the Fund continues to own. As we have
continued to monitor developments in Puerto Rico, we have taken advantage of
market weakness to add to positions in these bonds at favorable prices.
The Fund continues to hold some tax-exempt bonds that were issued to
finance co-generation facilities owned and operated by the Calpine Corp., which
on December 20, 2005, filed voluntary petitions to restructure under Chapter 11
of the U.S. Bankruptcy Code. The bonds we hold on one of the Calpine facilities,
Port Authority of NY/NJ (KIAC), represented 1.03% of total net assets at the end
of this report period, and had a slightly negative impact on total return.
However, this bond represents a project financing and is secured by a
co-generation facilities mortgage; while the bankruptcy filing adds a
14 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
degree of uncertainty surrounding the owner/operator, all scheduled principal
and interest payments on the bonds have been paid in this report period, and we
remain optimistic that future payments on the bonds will be made on time as
well.
Separately, the Fund has increased holdings in municipal
inverse-floating-rate securities during this report period. These holdings are
generally highly liquid, tax-exempt securities whose interest payments move
inversely to short-term interest rates: stated differently, an increase in
short-term interest rates causes a decline in income from these securities. As
the yield curve flattened and long-term interest rates rose slightly during this
period, these securities generated less income than in previous periods but
still offered higher-than-market rates. The Fund's diversified portfolio
includes a variety of bond types, structures and maturities, in an effort to
mute the effects of any one variety. New municipal bond issues during this
report period offered fewer higher-yielding municipal bonds, which typically
possess a favorable balance of risk and reward for the Fund. In an effort to
minimize overall income volatility in the Fund across the past 12 months, we
continued to invest in select premium-coupon, callable bonds that may remain
outstanding through periods of rising short-term interest rates.
The "Rochester Style" of municipal bond investing is flexible and
responsive to market conditions; our strategies are intended to balance many
different types of risk to reduce exposure to any individual risk. We continue
to comb the market for bonds that offer attractive yields, and to monitor
developing market conditions. Notwithstanding changes in the Fund's dividend
distribution, we believe that shareholders will continue to benefit from highly
competitive yields as market conditions change. Shareholders should note that
market conditions during this report period did not affect the Fund's overall
investment strategies or cause it to pay any capital gain distribution.
15 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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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, 2006. In the case of Class A, Class B and Class C
shares, performance is measured over a ten-year period. 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. Past
performance cannot guarantee future results.
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 income but does not consider the effect of transaction costs, and none of the
data in the graphs shows the effect of taxes. The Fund's performance reflects
the effects of the Fund's 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 investments in
the index.
16 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer New Jersey Municipal Fund (Class A)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer
New Jersey Lehman Brothers
Municipal Fund Municipal Bond
(Class A) Index
----------------- -----------------
7/31/1996 $ 9,525 $ 10,000
$ 9,736 $ 10,252
$ 9,872 $ 10,415
$ 9,950 $ 10,458
7/31/1997 $ 10,477 $ 11,025
$ 10,557 $ 11,123
$ 10,926 $ 11,468
$ 10,841 $ 11,430
7/31/1998 $ 11,102 $ 11,686
$ 11,396 $ 12,014
$ 11,628 $ 12,231
$ 11,598 $ 12,224
7/31/1999 $ 11,276 $ 12,022
$ 10,616 $ 11,802
$ 10,427 $ 11,787
$ 10,682 $ 12,112
7/31/2000 $ 10,998 $ 12,541
$ 11,192 $ 12,806
$ 11,655 $ 13,353
$ 11,656 $ 13,369
7/31/2001 $ 12,143 $ 13,804
$ 12,324 $ 14,151
$ 12,255 $ 14,140
$ 12,454 $ 14,305
7/31/2002 $ 12,846 $ 14,731
$ 12,604 $ 14,982
$ 12,713 $ 15,196
$ 12,786 $ 15,519
7/31/2003 $ 13,002 $ 15,262
$ 13,572 $ 15,748
$ 14,393 $ 16,136
$ 14,088 $ 15,935
7/31/2004 $ 14,124 $ 16,145
$ 14,925 $ 16,698
$ 15,595 $ 16,919
$ 16,065 $ 17,021
7/31/2005 $ 16,731 $ 17,169
$ 16,517 $ 17,121
$ 16,953 $ 17,398
$ 17,091 $ 17,388
7/31/2006 $ 17,389 $ 17,607
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
7/31/06
1-Year -1.00% 5-Year 6.41% 10-Year 5.69%
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, AND THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE 1% CONTINGENT 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 USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE
PAGE 20 FOR FURTHER INFORMATION.
17 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer New Jersey Municipal Fund (Class B)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Lehman
New Jersey Brothers
Municipal Fund Municipal Bond
(Class B) Index
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7/31/1996 $ 10,000 $ 10,000
$ 10,202 $ 10,252
$ 10,324 $ 10,415
$ 10,388 $ 10,458
7/31/1997 $ 10,918 $ 11,025
$ 10,979 $ 11,123
$ 11,353 $ 11,468
$ 11,233 $ 11,430
7/31/1998 $ 11,491 $ 11,686
$ 11,774 $ 12,014
$ 11,981 $ 12,231
$ 11,928 $ 12,224
7/31/1999 $ 11,584 $ 12,022
$ 10,896 $ 11,802
$ 10,672 $ 11,787
$ 10,913 $ 12,112
7/31/2000 $ 11,224 $ 12,541
$ 11,400 $ 12,806
$ 11,849 $ 13,353
$ 11,828 $ 13,369
7/31/2001 $ 12,299 $ 13,804
$ 12,458 $ 14,151
$ 12,366 $ 14,140
$ 12,543 $ 14,305
7/31/2002 $ 12,933 $ 14,731
$ 12,690 $ 14,982
$ 12,799 $ 15,196
$ 12,873 $ 15,519
7/31/2003 $ 13,090 $ 15,262
$ 13,665 $ 15,748
$ 14,491 $ 16,136
$ 14,184 $ 15,935
7/31/2004 $ 14,220 $ 16,145
$ 15,026 $ 16,698
$ 15,701 $ 16,919
$ 16,174 $ 17,021
7/31/2005 $ 16,845 $ 17,169
$ 16,630 $ 17,121
$ 17,068 $ 17,398
$ 17,207 $ 17,388
7/31/2006 $ 17,507 $ 17,607
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
7/31/06
1-Year -1.91% 5-Year 6.32% 10-Year 5.76%
18 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer New Jersey Municipal Fund (Class C)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Lehman
New Jersey Brothers
Municipal Fund Municipal
(Class C) Bond Index
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7/31/1996 $ 10,000 $ 10,000
$ 10,200 $ 10,252
$ 10,330 $ 10,415
$ 10,382 $ 10,458
7/31/1997 $ 10,911 $ 11,025
$ 10,972 $ 11,123
$ 11,345 $ 11,468
$ 11,226 $ 11,430
7/31/1998 $ 11,483 $ 11,686
$ 11,766 $ 12,014
$ 11,973 $ 12,231
$ 11,919 $ 12,224
7/31/1999 $ 11,576 $ 12,022
$ 10,878 $ 11,802
$ 10,664 $ 11,787
$ 10,905 $ 12,112
7/31/2000 $ 11,206 $ 12,541
$ 11,382 $ 12,806
$ 11,831 $ 13,353
$ 11,821 $ 13,369
7/31/2001 $ 12,280 $ 13,804
$ 12,439 $ 14,151
$ 12,358 $ 14,140
$ 12,535 $ 14,305
7/31/2002 $ 12,893 $ 14,731
$ 12,638 $ 14,982
$ 12,722 $ 15,196
$ 12,761 $ 15,519
7/31/2003 $ 12,951 $ 15,262
$ 13,506 $ 15,748
$ 14,295 $ 16,136
$ 13,967 $ 15,935
7/31/2004 $ 13,976 $ 16,145
$ 14,740 $ 16,698
$ 15,372 $ 16,919
$ 15,792 $ 17,021
7/31/2005 $ 16,428 $ 17,169
$ 16,187 $ 17,121
$ 16,582 $ 17,398
$ 16,685 $ 17,388
7/31/2006 $ 16,944 $ 17,607
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
7/31/06
1-Year 2.15% 5-Year 6.65% 10-Year 5.41%
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, AND THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE 1% CONTINGENT 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 USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE
PAGE 20 FOR FURTHER INFORMATION.
19 | OPPENHEIMER NEW JERSEY 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. CUMULATIVE TOTAL RETURNS ARE NOT
ANNUALIZED. THE FUND'S TOTAL RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF
INCOME TAXES ON AN INDIVIDUAL'S INVESTMENT. TAXES MAY REDUCE YOUR ACTUAL
INVESTMENT RETURNS ON INCOME OR GAINS PAID BY THE FUND OR ANY GAINS YOU MAY
REALIZE IF YOU SELL YOUR SHARES. THIS ANNUAL REPORT MUST BE PRECEDED OR
ACCOMPANIED BY THE CURRENT PROSPECTUS OF THE OPPENHEIMER NEW JERSEY MUNICIPAL
FUND. BEFORE INVESTING IN ANY OF THE OPPENHEIMER FUNDS, INVESTORS SHOULD
CAREFULLY CONSIDER A FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES.
FUND PROSPECTUSES CONTAIN THIS AND OTHER INFORMATION ABOUT THE FUNDS. FOR MORE
INFORMATION, ASK YOUR FINANCIAL ADVISOR, CALL US AT 1.800.525.7048, OR VISIT OUR
WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ PROSPECTUSES CAREFULLY BEFORE
INVESTING.
THE FUND'S INVESTMENT STRATEGY AND FOCUS CAN CHANGE OVER TIME. THE MENTION OF
SPECIFIC FUND HOLDINGS DOES NOT CONSTITUTE A RECOMMENDATION BY OPPENHEIMERFUNDS,
INC.
CLASS A shares of the Fund were first publicly offered on 3/1/94. 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 3/1/94. 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 1-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.
20 | OPPENHEIMER NEW JERSEY 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, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
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, 2006.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. 1 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 1 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 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.
1. Restated to include certain financing expenses related to the Fund's
investments in certain inverse floaters. Please refer to Note 9 to the Fund's
Financial Statements included within.
21 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RESTATED
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(2/1/06) (7/31/06) 1 JULY 31, 2006 1
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,025.80 $ 7.66
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.26 7.63
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,021.70 11.59
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,013.39 11.55
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,021.80 11.49
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,013.49 11.45
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 181/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended July 31, 2006 are as follows:
RESTATED
CLASS EXPENSE RATIOS 1
- -----------------------------
Class A 1.52%
- -----------------------------
Class B 2.30
- -----------------------------
Class C 2.28
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Manager that can be terminated at any time, without advance notice.
The "Financial Highlights" tables in the Fund's financial statements, included
in this report, also show the gross expense ratios, without such waivers or
reimbursements.
1. Expense Ratios and Expenses Paid have been restated to reflect the additional
expenses described in Note 9 to the Fund's Financial Statements included within.
The Hypothetical Ending Account Values have likewise been restated to reflect
the restated expense ratios because their calculation assumes a 5% return before
expenses and does not include the additional income attributable to the inverse
floater structures in which the Fund invests. The Actual Ending Account Values
have not changed because their calculation includes both the additional expenses
and additional income attributable to these inverse floater structures. Those
two amounts offset each other. The previously reported Fund Expense information
is as follows:
PREVIOUSLY REPORTED
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(2/1/06) (7/31/06) JULY 31, 2006
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,025.80 $4.48
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,020.38 4.47
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,021.70 8.41
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,016.51 8.38
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,021.80 8.30
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,016.61 8.28
PREVIOUSLY REPORTED
CLASS EXPENSE RATIOS
- --------------------------------
Class A 0.89%
- --------------------------------
Class B 1.67
- --------------------------------
Class C 1.65
- --------------------------------------------------------------------------------
22 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS July 31, 2006
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--115.0%
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY--87.1%
$ 10,000 Bergen County HDC 6.750% 10/01/2018 $ 10,098
- ---------------------------------------------------------------------------------------------------------------------
25,000 Berkeley HFC (Bayville Hsg.) 5.750 08/01/2014 25,580
- ---------------------------------------------------------------------------------------------------------------------
55,000 Camden County Municipal Utilities Authority 5.125 07/15/2017 55,638
- ---------------------------------------------------------------------------------------------------------------------
50,000 Camden County Municipal Utilities Authority 5.300 07/15/2014 50,667
- ---------------------------------------------------------------------------------------------------------------------
100,000 Camden County PCFA
(Camden County Energy Recovery Associates) 7.500 12/01/2009 101,319
- ---------------------------------------------------------------------------------------------------------------------
100,000 Camden County PCFA
(Camden County Energy Recovery Associates) 7.500 12/01/2010 100,254
- ---------------------------------------------------------------------------------------------------------------------
100,000 Delaware River Port Authority PA/NJ 5.400 01/01/2011 102,118
- ---------------------------------------------------------------------------------------------------------------------
1,565,000 Delaware River Port Authority PA/NJ 5.400 01/01/2016 1,597,912
- ---------------------------------------------------------------------------------------------------------------------
9,140,000 Delaware River Port Authority PA/NJ 5.500 01/01/2026 9,334,865
- ---------------------------------------------------------------------------------------------------------------------
300,000 Essex County Improvement Authority 5.125 10/01/2022 316,557
- ---------------------------------------------------------------------------------------------------------------------
40,000 Essex County Improvement Authority
(County Jail & Youth House) 5.350 12/01/2024 40,973
- ---------------------------------------------------------------------------------------------------------------------
70,000 Essex County Improvement Authority (Sportsplex) 5.625 10/01/2027 71,564
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 Garden State Preservation Trust
(Open Space & Farmland Preservation) 5.800 11/01/2023 2,261,540
- ---------------------------------------------------------------------------------------------------------------------
1,250,000 Gloucester County Hsg. Devel. Corp. (Colonial Park) 1 6.200 09/15/2011 1,261,725
- ---------------------------------------------------------------------------------------------------------------------
20,000 Gloucester County Improvement Authority
(Governmental Leasing Program) 5.900 04/01/2007 20,034
- ---------------------------------------------------------------------------------------------------------------------
5,000 Gloucester County Utilities Authority 5.125 01/01/2013 5,005
- ---------------------------------------------------------------------------------------------------------------------
25,000 Haledon School District 5.625 02/01/2009 25,036
- ---------------------------------------------------------------------------------------------------------------------
565,000 Higher Education Student Assistance Authority
(Student Loan) 6.000 06/01/2015 578,577
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 Hudson County Solid Waste Improvement Authority 6.000 01/01/2029 1,005,350
- ---------------------------------------------------------------------------------------------------------------------
3,755,000 Hudson County Solid Waste Improvement Authority
(Koppers Site) 6.125 01/01/2029 3,784,364
- ---------------------------------------------------------------------------------------------------------------------
20,000 Hunterdon County Educational Services Commission COP 2 7.000 02/01/2015 20,225
- ---------------------------------------------------------------------------------------------------------------------
25,000 Jersey City GO 5.250 10/01/2016 25,553
- ---------------------------------------------------------------------------------------------------------------------
100,000 Lenape Regional High School District 5.000 04/01/2023 100,541
- ---------------------------------------------------------------------------------------------------------------------
75,000 Mercer County Improvement Authority 5.000 11/15/2016 76,724
- ---------------------------------------------------------------------------------------------------------------------
3,290,000 Mercer County Improvement Authority 5.000 08/01/2040 3,372,447
- ---------------------------------------------------------------------------------------------------------------------
45,000 Mercer County Improvement Authority (Solid Waste) 5.750 09/15/2016 46,791
- ---------------------------------------------------------------------------------------------------------------------
875,000 Middlesex County Improvement Authority
(Heldrich Center Hotel) 1 5.000 01/01/2015 880,040
- ---------------------------------------------------------------------------------------------------------------------
500,000 Middlesex County Improvement Authority
(Heldrich Center Hotel) 1 5.000 01/01/2020 502,535
- ---------------------------------------------------------------------------------------------------------------------
1,535,000 Middlesex County Improvement Authority
(Heldrich Center Hotel) 1 5.000 01/01/2032 1,492,956
23 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 1,100,000 Middlesex County Improvement Authority
(Heldrich Center Hotel) 1 5.125% 01/01/2037 $ 1,085,755
- ---------------------------------------------------------------------------------------------------------------------
975,000 Middlesex County Improvement Authority
(Skyline Tower Urban Renewal Associates) 1 5.350 07/01/2034 1,008,413
- ---------------------------------------------------------------------------------------------------------------------
2,500,000 Middlesex County Pollution Control Authority
(Amerada Hess Corp.) 6.050 09/15/2034 2,673,300
- ---------------------------------------------------------------------------------------------------------------------
10,000 Morristown GO 5.300 03/01/2021 10,010
- ---------------------------------------------------------------------------------------------------------------------
35,000 New Brunswick Hsg. & Urban Devel. Authority 5.500 08/01/2011 35,046
- ---------------------------------------------------------------------------------------------------------------------
65,000 New Brunswick Hsg. & Urban Devel. Authority 5.750 07/01/2024 65,112
- ---------------------------------------------------------------------------------------------------------------------
1,655,000 NJ EDA (American Airlines) 1 7.100 11/01/2031 1,655,563
- ---------------------------------------------------------------------------------------------------------------------
2,755,000 NJ EDA (Anheuser-Busch Companies) 1 5.850 12/01/2030 2,813,902
- ---------------------------------------------------------------------------------------------------------------------
2,065,000 NJ EDA (Applewood Estates) 5.000 10/01/2025 2,120,631
- ---------------------------------------------------------------------------------------------------------------------
8,060,000 NJ EDA (Applewood Estates) 1 5.000 10/01/2035 8,216,848
- ---------------------------------------------------------------------------------------------------------------------
50,000 NJ EDA (Bristol Glen) 5.750 07/01/2029 50,828
- ---------------------------------------------------------------------------------------------------------------------
1,690,000 NJ EDA (Cadbury at Cherry Hill) 4.600 07/01/2027 1,694,276
- ---------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Cadbury at Cherry Hill) 5.500 07/01/2018 103,116
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Cadbury at Cherry Hill) 5.500 07/01/2028 25,546
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Cascade Corp.) 8.250 02/01/2026 24,999
- ---------------------------------------------------------------------------------------------------------------------
3,000,000 NJ EDA (Cigarette Tax) 5.500 06/15/2031 3,111,450
- ---------------------------------------------------------------------------------------------------------------------
1,500,000 NJ EDA (Cigarette Tax) 5.750 06/15/2029 1,589,985
- ---------------------------------------------------------------------------------------------------------------------
10,000,000 NJ EDA (Cigarette Tax) 5.750 06/15/2034 10,533,000
- ---------------------------------------------------------------------------------------------------------------------
530,000 NJ EDA (Continental Airlines) 5.500 04/01/2028 470,375
- ---------------------------------------------------------------------------------------------------------------------
15,660,000 NJ EDA (Continental Airlines) 6.250 09/15/2019 16,033,334
- ---------------------------------------------------------------------------------------------------------------------
4,045,000 NJ EDA (Continental Airlines) 1 6.250 09/15/2029 4,139,410
- ---------------------------------------------------------------------------------------------------------------------
5,750,000 NJ EDA (Continental Airlines) 1 6.400 09/15/2023 5,906,458
- ---------------------------------------------------------------------------------------------------------------------
3,590,000 NJ EDA (Continental Airlines) 1 6.625 09/15/2012 3,784,865
- ---------------------------------------------------------------------------------------------------------------------
665,000 NJ EDA (Continental Airlines) 7.000 11/15/2030 697,465
- ---------------------------------------------------------------------------------------------------------------------
3,500,000 NJ EDA (Continental Airlines) 1 9.000 06/01/2033 4,132,485
- ---------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Courthouse Convalescent Center) 8.700 02/01/2014 100,061
- ---------------------------------------------------------------------------------------------------------------------
3,100,000 NJ EDA (Cranes Mill) 5.100 06/01/2027 3,057,902
- ---------------------------------------------------------------------------------------------------------------------
70,000 NJ EDA (Dept. of Human Services) 5.000 07/01/2022 71,634
- ---------------------------------------------------------------------------------------------------------------------
130,000 NJ EDA (Dept. of Human Services) 6.250 07/01/2024 141,072
- ---------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Devereux Foundation) 5.450 05/01/2027 101,958
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Eastern Shore) 8.000 02/01/2011 25,003
- ---------------------------------------------------------------------------------------------------------------------
615,000 NJ EDA (Elizabethtown Water Company) 5.600 12/01/2025 624,803
- ---------------------------------------------------------------------------------------------------------------------
3,900,000 NJ EDA (Empowerment Zone-Cumberland) 1 7.750 08/01/2021 3,921,021
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ EDA (Fellowship Village) 5.500 01/01/2018 20,379
- ---------------------------------------------------------------------------------------------------------------------
140,000 NJ EDA (General Motors Corp.) 5.350 04/01/2009 137,876
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Greater New York Councils Boy Scouts of America) 5.450 09/01/2023 25,124
- ---------------------------------------------------------------------------------------------------------------------
320,000 NJ EDA (Hackensack Water Company) 5.800 03/01/2024 327,261
24 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 125,000 NJ EDA (Hackensack Water Company) 5.900% 03/01/2024 $ 127,771
- ---------------------------------------------------------------------------------------------------------------------
2,010,000 NJ EDA (Jersey Central Power & Light) 7.100 07/01/2015 2,034,261
- ---------------------------------------------------------------------------------------------------------------------
4,900,000 NJ EDA (JVG Properties) 1 5.375 03/01/2019 4,965,170
- ---------------------------------------------------------------------------------------------------------------------
2,500,000 NJ EDA (Kapkowski Road Landfill) 1 6.500 04/01/2031 2,912,325
- ---------------------------------------------------------------------------------------------------------------------
10,000 NJ EDA (Kullman Associates) 6.125 06/01/2018 9,628
- ---------------------------------------------------------------------------------------------------------------------
120,000 NJ EDA (Kullman Associates) 6.750 07/01/2019 119,155
- ---------------------------------------------------------------------------------------------------------------------
8,690,000 NJ EDA (Liberty Street Park) 3,4 5.000 03/01/2027 8,974,010
- ---------------------------------------------------------------------------------------------------------------------
710,000 NJ EDA (Lions Gate) 5.750 01/01/2025 724,186
- ---------------------------------------------------------------------------------------------------------------------
1,330,000 NJ EDA (Lions Gate) 5.875 01/01/2037 1,358,502
- ---------------------------------------------------------------------------------------------------------------------
30,000 NJ EDA (Manchester Manor) 6.700 08/01/2022 30,060
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (Marcus L. Ward Home) 5.750 11/01/2024 1,059,670
- ---------------------------------------------------------------------------------------------------------------------
1,200,000 NJ EDA (Marcus L. Ward Home) 5.800 11/01/2031 1,274,052
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (Masonic Charity Foundation of New Jersey) 5.500 06/01/2031 1,051,650
- ---------------------------------------------------------------------------------------------------------------------
750,000 NJ EDA (Masonic Charity Foundation of New Jersey) 6.000 06/01/2025 821,588
- ---------------------------------------------------------------------------------------------------------------------
180,000 NJ EDA (Middlesex Water Company) 5.200 10/01/2022 180,148
- ---------------------------------------------------------------------------------------------------------------------
180,000 NJ EDA (Middlesex Water Company) 5.250 10/01/2023 180,103
- ---------------------------------------------------------------------------------------------------------------------
40,000 NJ EDA (Middlesex Water Company) 5.250 02/01/2029 40,019
- ---------------------------------------------------------------------------------------------------------------------
215,000 NJ EDA (Middlesex Water Company) 5.350 02/01/2038 219,928
- ---------------------------------------------------------------------------------------------------------------------
790,000 NJ EDA (New Jersey American Water Company) 5.250 07/01/2038 814,316
- ---------------------------------------------------------------------------------------------------------------------
110,000 NJ EDA (New Jersey American Water Company) 5.350 06/01/2023 110,123
- ---------------------------------------------------------------------------------------------------------------------
240,000 NJ EDA (New Jersey American Water Company) 5.350 06/01/2023 240,269
- ---------------------------------------------------------------------------------------------------------------------
505,000 NJ EDA (New Jersey American Water Company) 5.375 05/01/2032 522,609
- ---------------------------------------------------------------------------------------------------------------------
310,000 NJ EDA (New Jersey American Water Company) 5.500 06/01/2023 310,260
- ---------------------------------------------------------------------------------------------------------------------
870,000 NJ EDA (New Jersey American Water Company) 5.950 11/01/2029 882,867
- ---------------------------------------------------------------------------------------------------------------------
385,000 NJ EDA (New Jersey American Water Company) 6.000 05/01/2036 395,083
- ---------------------------------------------------------------------------------------------------------------------
6,520,000 NJ EDA (New Jersey American Water Company) 6.875 11/01/2034 6,568,704
- ---------------------------------------------------------------------------------------------------------------------
70,000 NJ EDA (New Jersey Natural Gas Company) 5.000 12/01/2038 70,960
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (New Jersey Transit Corp.) 5.700 12/15/2013 25,170
- ---------------------------------------------------------------------------------------------------------------------
30,000 NJ EDA (New Jersey Transit Corp.) 5.750 12/15/2017 30,211
- ---------------------------------------------------------------------------------------------------------------------
2,105,000 NJ EDA (Nui Corp.) 5.250 11/01/2033 2,122,345
- ---------------------------------------------------------------------------------------------------------------------
600,000 NJ EDA (Nui Corp.) 5.250 11/01/2033 602,556
- ---------------------------------------------------------------------------------------------------------------------
765,000 NJ EDA (Nui Corp.) 5.700 06/01/2032 787,820
- ---------------------------------------------------------------------------------------------------------------------
45,000 NJ EDA
(Presbyterian Home at Watchung/Pennington/Monmouth) 7.250 12/01/2021 47,223
- ---------------------------------------------------------------------------------------------------------------------
50,000 NJ EDA
(Presbyterian Home at Watchung/Pennington/Monmouth) 7.500 12/01/2032 52,393
- ---------------------------------------------------------------------------------------------------------------------
4,820,000 NJ EDA (Public Service Electric & Gas) 1 6.400 05/01/2032 4,855,957
- ---------------------------------------------------------------------------------------------------------------------
240,000 NJ EDA (Reformed Church Ministries to the Aging
The Particulare Synod Mid-Atlantics) 5.375 12/01/2018 245,947
- ---------------------------------------------------------------------------------------------------------------------
6,000,000 NJ EDA (School Facilities Construction) 5.000 09/01/2030 6,156,120
25 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 7,430,000 NJ EDA (School Facilities Construction) 5.125% 03/01/2028 $ 7,690,422
- ---------------------------------------------------------------------------------------------------------------------
6,345,000 NJ EDA (School Facilities Construction) 5.125 09/01/2028 6,587,442
- ---------------------------------------------------------------------------------------------------------------------
4,430,000 NJ EDA (School Facilities Construction) 5.125 03/01/2030 4,578,937
- ---------------------------------------------------------------------------------------------------------------------
635,000 NJ EDA (St. Barnabas Medical Center) 5.375 07/01/2027 654,660
- ---------------------------------------------------------------------------------------------------------------------
1,215,000 NJ EDA (St. Francis Life Care Corp.) 5.700 10/01/2017 1,243,176
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA (St. Francis Life Care Corp.) 5.750 10/01/2023 2,045,180
- ---------------------------------------------------------------------------------------------------------------------
480,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2019 490,579
- ---------------------------------------------------------------------------------------------------------------------
510,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2020 520,868
- ---------------------------------------------------------------------------------------------------------------------
545,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2021 556,298
- ---------------------------------------------------------------------------------------------------------------------
575,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2022 586,506
- ---------------------------------------------------------------------------------------------------------------------
610,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2023 621,938
- ---------------------------------------------------------------------------------------------------------------------
650,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2024 662,545
- ---------------------------------------------------------------------------------------------------------------------
690,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2025 703,007
- ---------------------------------------------------------------------------------------------------------------------
115,000 NJ EDA (The Presbyterian Home at Montgomery) 6.375 11/01/2031 121,180
- ---------------------------------------------------------------------------------------------------------------------
3,770,000 NJ EDA (Trigen-Trenton District Energy Company) 6.200 12/01/2010 3,808,567
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ EDA (United Methodist Homes of New Jersey) 5.125 07/01/2018 19,495
- ---------------------------------------------------------------------------------------------------------------------
2,370,000 NJ EDA (United Methodist Homes of New Jersey) 5.125 07/01/2025 2,260,838
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (United Methodist Homes of New Jersey) 7.200 07/01/2010 25,292
- ---------------------------------------------------------------------------------------------------------------------
420,000 NJ EDA (United Water New Jersey) 5.000 11/01/2028 425,662
- ---------------------------------------------------------------------------------------------------------------------
10,000 NJ EDA (YMCA of Fanwood-Scotch Plains) 6.375 12/01/2007 10,016
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA Retirement Community (Cedar Crest Village) 7.250 11/15/2021 2,174,280
- ---------------------------------------------------------------------------------------------------------------------
2,100,000 NJ EDA Retirement Community (Seabrook Village) 8.000 11/15/2015 2,357,502
- ---------------------------------------------------------------------------------------------------------------------
8,000,000 NJ EDA (School Facilities Construction) 3,4 5.000 09/01/2024 8,552,600
- ---------------------------------------------------------------------------------------------------------------------
18,080,000 NJ EDA (School Facilities Construction) 3,4 5.125 03/01/2028 18,713,794
- ---------------------------------------------------------------------------------------------------------------------
36,180,000 NJ EDA (School Facilities Construction) 3,4 5.125 03/01/2030 37,396,372
- ---------------------------------------------------------------------------------------------------------------------
90,000 NJ Educational Facilities Authority
(Beth Medrash Govoha America) 6.375 07/01/2030 94,958
- ---------------------------------------------------------------------------------------------------------------------
825,000 NJ Educational Facilities Authority (Caldwell College) 7.250 07/01/2025 834,710
- ---------------------------------------------------------------------------------------------------------------------
625,000 NJ Educational Facilities Authority
(Fairleigh Dickinson University), Series D 5.250 07/01/2032 634,563
- ---------------------------------------------------------------------------------------------------------------------
15,000,000 NJ Educational Facilities Authority
(Fairleigh Dickinson University), Series D 6.000 07/01/2025 16,208,400
- ---------------------------------------------------------------------------------------------------------------------
1,235,000 NJ Educational Facilities Authority
(Fairleigh Dickinson University), Series G 5.700 07/01/2028 1,277,101
- ---------------------------------------------------------------------------------------------------------------------
3,540,000 NJ Educational Facilities Authority
(Georgian Court College) 6.500 07/01/2033 3,906,886
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ Educational Facilities Authority
(Institute for Advance Study) 5.000 07/01/2028 25,602
- ---------------------------------------------------------------------------------------------------------------------
185,000 NJ Educational Facilities Authority (Monmouth University) 5.625 07/01/2013 185,163
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 NJ Educational Facilities Authority (Monmouth University) 5.800 07/01/2022 2,058,900
26 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 2,855,000 NJ Educational Facilities Authority
(Montclaire State University) 5.000% 07/01/2024 $ 2,990,184
- ---------------------------------------------------------------------------------------------------------------------
1,590,000 NJ Educational Facilities Authority
(Montclaire State University) 5.000 07/01/2031 1,652,328
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ Educational Facilities Authority (Princeton University) 5.000 07/01/2029 25,409
- ---------------------------------------------------------------------------------------------------------------------
280,000 NJ Educational Facilities Authority (St. Peter's College) 5.500 07/01/2027 281,355
- ---------------------------------------------------------------------------------------------------------------------
1,345,000 NJ Educational Facilities Authority
(Stevens Institute of Technology) 5.250 07/01/2032 1,379,015
- ---------------------------------------------------------------------------------------------------------------------
100,000 NJ Educational Facilities Authority
(University of Medicine & Dentistry) 5.250 12/01/2014 101,109
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ Educational Facilities Authority
(University of Medicine & Dentistry) 5.250 12/01/2015 20,222
- ---------------------------------------------------------------------------------------------------------------------
315,000 NJ Educational Facilities Authority
(University of Medicine & Dentistry) 5.250 12/01/2021 318,443
- ---------------------------------------------------------------------------------------------------------------------
705,000 NJ Educational Facilities Authority
(University of Medicine & Dentistry) 5.250 12/01/2021 712,706
- ---------------------------------------------------------------------------------------------------------------------
100,000 NJ Educational Facilities Authority
(University of Medicine & Dentistry) 5.250 12/01/2025 101,090
- ---------------------------------------------------------------------------------------------------------------------
190,000 NJ Educational Facilities Authority
(University of Medicine & Dentistry) 5.250 12/01/2025 192,071
- ---------------------------------------------------------------------------------------------------------------------
80,000 NJ Environmental Infrastructure 5.000 09/01/2020 82,674
- ---------------------------------------------------------------------------------------------------------------------
10,000 NJ Health Care Facilities Financing Authority
(Allegany Health System Obligated Group) 5.200 07/01/2018 10,299
- ---------------------------------------------------------------------------------------------------------------------
65,000 NJ Health Care Facilities Financing Authority
(Atlantic Health Systems Hospital Corp.) 5.375 07/01/2019 67,075
- ---------------------------------------------------------------------------------------------------------------------
50,000 NJ Health Care Facilities Financing Authority
(Atlantic Health Systems) 5.000 07/01/2027 50,839
- ---------------------------------------------------------------------------------------------------------------------
475,000 NJ Health Care Facilities Financing Authority
(Avalon at Hillsborough) 6.150 07/01/2020 479,973
- ---------------------------------------------------------------------------------------------------------------------
750,000 NJ Health Care Facilities Financing Authority
(Avalon at Hillsborough) 6.375 07/01/2025 755,280
- ---------------------------------------------------------------------------------------------------------------------
500,000 NJ Health Care Facilities Financing Authority
(Avalon at Hillsborough) 6.625 07/01/2035 503,915
- ---------------------------------------------------------------------------------------------------------------------
10,000 NJ Health Care Facilities Financing Authority
(Burdette Tomlin Memorial Hospital) 6.500 07/01/2012 10,039
- ---------------------------------------------------------------------------------------------------------------------
10,000 NJ Health Care Facilities Financing Authority
(Catholic Health East) 5.375 11/15/2033 10,352
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Health Care Facilities Financing Authority
(Childrens Specialized Hospital) 5.500 07/01/2036 1,034,840
- ---------------------------------------------------------------------------------------------------------------------
50,000 NJ Health Care Facilities Financing Authority
(Chilton Memorial Hospital) 5.000 07/01/2013 50,024
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ Health Care Facilities Financing Authority
(CMC/KMCC Obligated Group) 5.500 07/01/2027 25,800
27 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 125,000 NJ Health Care Facilities Financing Authority
(CMMC/CMHS Obligated Group) 5.000% 07/01/2025 $ 126,841
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Health Care Facilities Financing Authority
(Columbus Hospital) 7.500 07/01/2021 1,001,340
- ---------------------------------------------------------------------------------------------------------------------
50,000 NJ Health Care Facilities Financing Authority
(CoMC/KMCC Obligated Group) 5.500 07/01/2017 51,652
- ---------------------------------------------------------------------------------------------------------------------
8,000,000 NJ Health Care Facilities Financing Authority
(Englewood Hospital) 3,4 5.250 08/01/2025 8,390,440
- ---------------------------------------------------------------------------------------------------------------------
15,000 NJ Health Care Facilities Financing Authority
(Greystone Park Psychiatric Hospital) 5.000 09/15/2026 15,538
- ---------------------------------------------------------------------------------------------------------------------
7,480,000 NJ Health Care Facilities Financing Authority
(Greystone Park Psychiatric Hospital) 3,4 5.000 09/15/2026 7,735,573
- ---------------------------------------------------------------------------------------------------------------------
4,000,000 NJ Health Care Facilities Financing Authority
(Greystone Park Psychiatric Hospital) 3,4 5.000 09/15/2027 4,136,670
- ---------------------------------------------------------------------------------------------------------------------
4,000,000 NJ Health Care Facilities Financing Authority
(Greystone Park Psychiatric Hospital) 3,4 5.000 09/15/2028 4,136,670
- ---------------------------------------------------------------------------------------------------------------------
30,000 NJ Health Care Facilities Financing Authority
(Hackensack University Medical Center) 5.000 01/01/2028 30,421
- ---------------------------------------------------------------------------------------------------------------------
1,250,000 NJ Health Care Facilities Financing Authority
(Holy Name Hospital) 5.000 07/01/2036 1,246,100
- ---------------------------------------------------------------------------------------------------------------------
15,000 NJ Health Care Facilities Financing Authority
(Holy Name Hospital) 6.000 07/01/2025 15,446
- ---------------------------------------------------------------------------------------------------------------------
2,500,000 NJ Health Care Facilities Financing Authority
(Hunterdon Medical Center) 5.125 07/01/2035 2,527,600
- ---------------------------------------------------------------------------------------------------------------------
25,000 NJ Health Care Facilities Financing Authority
(ONP/MHC Obligated Group) 5.375 07/01/2024 26,075
- ---------------------------------------------------------------------------------------------------------------------
55,000 NJ Health Care Facilities Financing Authority
(Palisades Medical Center) 5.250 07/01/2028 55,696
- ---------------------------------------------------------------------------------------------------------------------
1,500,000 NJ Health Care Facilities Financing Authority
(Raritan Bay Medical Center) 7.250 07/01/2014 1,543,800
- ---------------------------------------------------------------------------------------------------------------------
130,000 NJ Health Care Facilities Financing Authority
(Raritan Bay Medical Center) 7.250 07/01/2027 132,964
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Health Care Facilities Financing Authority (RWJ Health
Care Corp/RWJ Hospital at Hamilton Obligated Group) 5.000 07/01/2025 1,024,900
- ---------------------------------------------------------------------------------------------------------------------
8,000,000 NJ Health Care Facilities Financing Authority (RWJ
University Hospital) 5.000 07/01/2035 8,140,800
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Health Care Facilities Financing Authority (RWJ
University Hospital) 5.750 07/01/2025 1,053,740
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ Health Care Facilities Financing Authority
(Society of the Valley Hospital) 5.500 07/01/2020 21,058
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ Health Care Facilities Financing Authority
(Somerset Medical Center) 5.500 07/01/2033 20,431
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ Health Care Facilities Financing Authority
(South Jersey Hospital System) 6.000 07/01/2032 21,154
28 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 25,000 NJ Health Care Facilities Financing Authority
(St. Barnabas Corp.) 5.000% 07/01/2024 $ 25,419
- ---------------------------------------------------------------------------------------------------------------------
4,845,000 NJ Health Care Facilities Financing Authority
(St. Clare's Hospital) 5.250 07/01/2021 5,086,233
- ---------------------------------------------------------------------------------------------------------------------
255,000 NJ Health Care Facilities Financing Authority
(St. Joseph's Hospital & Medical Center) 5.750 07/01/2016 260,447
- ---------------------------------------------------------------------------------------------------------------------
800,000 NJ Health Care Facilities Financing Authority
(St. Joseph's Hospital & Medical Center) 6.000 07/01/2026 817,304
- ---------------------------------------------------------------------------------------------------------------------
5,000 NJ Health Care Facilities Financing Authority
(St. Peter's Hospital) 5.000 07/01/2012 5,004
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ Health Care Facilities Financing Authority
(St. Peter's Hospital) 5.000 07/01/2013 20,016
- ---------------------------------------------------------------------------------------------------------------------
185,000 NJ Health Care Facilities Financing Authority
(St. Peter's Hospital) 5.000 07/01/2021 185,551
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Health Care Facilities Financing Authority
(St. Peter's University Hospital/Margaret McLaughlin
McCarrick Care Center Obligated Group) 6.875 07/01/2030 1,097,720
- ---------------------------------------------------------------------------------------------------------------------
45,000 NJ Health Care Facilities Financing Authority
(The Medical Center at Princeton) 5.000 07/01/2028 45,895
- ---------------------------------------------------------------------------------------------------------------------
50,000 NJ Health Care Facilities Financing Authority
(THGS\THGSF Obligated Group) 5.200 07/01/2031 51,214
- ---------------------------------------------------------------------------------------------------------------------
50,000 NJ Health Care Facilities Financing Authority
(Trinitas Hospital/Marillac Corp. Obligated Group) 7.400 07/01/2020 55,272
- ---------------------------------------------------------------------------------------------------------------------
15,000 NJ HFA 5.250 11/01/2015 15,010
- ---------------------------------------------------------------------------------------------------------------------
45,000 NJ HFA 5.375 11/01/2008 45,038
- ---------------------------------------------------------------------------------------------------------------------
10,000 NJ Higher Education Assistance Authority (Student Loans) 5.250 06/01/2018 10,104
- ---------------------------------------------------------------------------------------------------------------------
45,000 NJ Higher Education Assistance Authority (Student Loans) 5.800 06/01/2016 45,151
- ---------------------------------------------------------------------------------------------------------------------
30,000 NJ Higher Education Assistance Authority (Student Loans) 5.900 07/01/2009 30,273
- ---------------------------------------------------------------------------------------------------------------------
30,000 NJ Higher Education Assistance Authority (Student Loans) 6.000 07/01/2012 30,046
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ Higher Education Assistance Authority (Student Loans) 6.125 07/01/2009 20,033
- ---------------------------------------------------------------------------------------------------------------------
15,000 NJ Higher Education Assistance Authority (Student Loans) 6.125 07/01/2015 15,030
- ---------------------------------------------------------------------------------------------------------------------
20,000 NJ Hsg. & Mortgage Finance Agency (Homebuyer) 5.250 10/01/2018 20,407
- ---------------------------------------------------------------------------------------------------------------------
15,000 NJ Hsg. & Mortgage Finance Agency (Homebuyer) 6.125 10/01/2021 15,095
- ---------------------------------------------------------------------------------------------------------------------
1,500,000 NJ Hsg. & Mortgage Finance Agency (Multifamily) 5 4.650 11/01/2026 1,505,160
- ---------------------------------------------------------------------------------------------------------------------
1,600,000 NJ Hsg. & Mortgage Finance Agency (Multifamily) 5 4.800 11/01/2036 1,602,352
- ---------------------------------------------------------------------------------------------------------------------
2,335,000 NJ Hsg. & Mortgage Finance Agency (Multifamily) 5 4.900 11/01/2026 2,351,579
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Hsg. & Mortgage Finance Agency (Multifamily) 5 5.000 11/01/2036 1,004,520
- ---------------------------------------------------------------------------------------------------------------------
80,000 NJ Hsg. & Mortgage Finance Agency (Multifamily) 5.400 11/01/2028 81,653
- ---------------------------------------------------------------------------------------------------------------------
200,000 NJ Hsg. & Mortgage Finance Agency, Series A 5.550 05/01/2027 206,300
- ---------------------------------------------------------------------------------------------------------------------
45,000 NJ Hsg. & Mortgage Finance Agency, Series A 5.650 05/01/2040 46,438
- ---------------------------------------------------------------------------------------------------------------------
30,000 NJ Hsg. & Mortgage Finance Agency, Series B 5.850 11/01/2012 31,301
- ---------------------------------------------------------------------------------------------------------------------
80,000 NJ Hsg. & Mortgage Finance Agency, Series B 6.150 11/01/2020 84,101
29 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 100,000 NJ Hsg. & Mortgage Finance Agency, Series E1 5.750% 05/01/2025 $ 103,844
- ---------------------------------------------------------------------------------------------------------------------
5,230,000 NJ Hsg. & Mortgage Finance Agency, Series M 1 4.875 10/01/2026 5,255,366
- ---------------------------------------------------------------------------------------------------------------------
935,000 NJ Hsg. & Mortgage Finance Agency, Series M 1 5.000 10/01/2036 951,260
- ---------------------------------------------------------------------------------------------------------------------
35,000 NJ Hsg. & Mortgage Finance Agency, Series N 5.900 10/01/2012 35,101
- ---------------------------------------------------------------------------------------------------------------------
1,085,000 NJ Hsg. & Mortgage Finance Agency, Series S 1 5.950 10/01/2017 1,099,062
- ---------------------------------------------------------------------------------------------------------------------
75,000 NJ Hsg. & Mortgage Finance Agency, Series T 5.600 04/01/2017 77,202
- ---------------------------------------------------------------------------------------------------------------------
1,340,000 NJ Hsg. & Mortgage Finance Agency, Series U 5.750 04/01/2018 1,374,505
- ---------------------------------------------------------------------------------------------------------------------
480,000 NJ Hsg. & Mortgage Finance Agency, Series U 5.850 04/01/2029 491,640
- ---------------------------------------------------------------------------------------------------------------------
75,000 NJ Hsg. & Mortgage Finance Agency, Series V 5.250 04/01/2026 76,724
- ---------------------------------------------------------------------------------------------------------------------
10,000 NJ Sports & Exposition Authority, Series A 5.000 01/01/2010 10,009
- ---------------------------------------------------------------------------------------------------------------------
15,000 NJ Sports & Exposition Authority, Series A 5.125 01/01/2016 15,015
- ---------------------------------------------------------------------------------------------------------------------
200,000 NJ Sports & Exposition Authority, Series A 5.200 01/01/2020 200,206
- ---------------------------------------------------------------------------------------------------------------------
565,000 NJ Sports & Exposition Authority, Series A 5.200 01/01/2024 565,514
- ---------------------------------------------------------------------------------------------------------------------
375,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.375 06/01/2018 380,779
- ---------------------------------------------------------------------------------------------------------------------
10,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.750 06/01/2016 10,393
- ---------------------------------------------------------------------------------------------------------------------
17,430,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.750 06/01/2032 18,239,972
- ---------------------------------------------------------------------------------------------------------------------
12,760,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 13,480,302
- ---------------------------------------------------------------------------------------------------------------------
16,660,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 17,704,915
- ---------------------------------------------------------------------------------------------------------------------
19,200,000 NJ Tobacco Settlement Financing Corp. (TASC) 3,4 6.125 06/01/2042 20,404,320
- ---------------------------------------------------------------------------------------------------------------------
3,860,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 4,188,332
- ---------------------------------------------------------------------------------------------------------------------
1,080,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.375 06/01/2032 1,177,686
- ---------------------------------------------------------------------------------------------------------------------
10,280,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.750 06/01/2039 11,540,122
- ---------------------------------------------------------------------------------------------------------------------
660,000 NJ Tobacco Settlement Financing Corp. (TASC) 7.000 06/01/2041 752,545
- ---------------------------------------------------------------------------------------------------------------------
800,000 NJ Tobacco Settlement Financing Corp. Fixed Receipts 6.125 06/01/2042 850,184
- ---------------------------------------------------------------------------------------------------------------------
5,000,000 NJ Transit Corp. COP (Federal Transportation
Administration Grants) 3,4 6.125 09/15/2014 5,341,225
- ---------------------------------------------------------------------------------------------------------------------
50,000 NJ Wastewater Treatment Trust 5.250 09/01/2016 51,063
- ---------------------------------------------------------------------------------------------------------------------
25,000 Pleasantville School District COP 5.500 10/01/2013 25,459
- ---------------------------------------------------------------------------------------------------------------------
1,155,000 Port Authority NY/NJ (JFK International Air Terminal) 5.750 12/01/2025 1,182,050
- ---------------------------------------------------------------------------------------------------------------------
3,425,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2011 3,489,287
- ---------------------------------------------------------------------------------------------------------------------
2,495,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2019 2,537,839
- ---------------------------------------------------------------------------------------------------------------------
40,000 Port Authority NY/NJ, 107th Series 5.375 10/15/2014 40,501
- ---------------------------------------------------------------------------------------------------------------------
25,000 Port Authority NY/NJ, 119th Series 5.500 09/15/2017 25,294
- ---------------------------------------------------------------------------------------------------------------------
9,235,000 Port Authority NY/NJ, 127th Series 3,4 5.250 12/15/2032 9,598,360
- ---------------------------------------------------------------------------------------------------------------------
2,500,000 Port Authority NY/NJ, 134th Series 5.000 07/15/2034 2,572,050
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 Port Authority NY/NJ, 135th Series 5.000 03/15/2039 1,025,600
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 Port Authority NY/NJ, 140th Series 5.000 12/01/2034 1,031,700
- ---------------------------------------------------------------------------------------------------------------------
15,720,000 Port Authority NY/NJ, 141st Series 3,4 5.000 09/01/2024 16,187,906
- ---------------------------------------------------------------------------------------------------------------------
75,000 Readington-Lebanon Sewage Authority 5.250 01/01/2013 75,084
- ---------------------------------------------------------------------------------------------------------------------
20,000 Riverside Township GO 5.450 12/01/2010 20,020
30 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 130,000 Salem County IPCFA (Atlantic City Electric Company) 5.600% 11/01/2025 $ 130,124
- ---------------------------------------------------------------------------------------------------------------------
25,000 Salem County IPCFA (Atlantic City Electric Company) 5.600 11/01/2025 25,024
- ---------------------------------------------------------------------------------------------------------------------
770,000 Salem County IPCFA (Public Service Electric & Gas) 5.200 03/01/2025 770,377
- ---------------------------------------------------------------------------------------------------------------------
1,850,000 Salem County IPCFA (Public Service Electric & Gas) 1 5.450 02/01/2032 1,867,427
- ---------------------------------------------------------------------------------------------------------------------
1,120,000 Salem County IPCFA (Public Service Electric & Gas) 1 5.750 04/01/2031 1,189,541
- ---------------------------------------------------------------------------------------------------------------------
3,000,000 South Brunswick Township Board of Education 5.250 08/01/2022 3,034,650
- ---------------------------------------------------------------------------------------------------------------------
120,000 South Jersey Transit Authority (The Raytheon Company) 6.150 01/01/2022 123,401
- ---------------------------------------------------------------------------------------------------------------------
3,980,000 Union County Improvement Authority
(Juvenile Detention Center) 5.500 05/01/2034 4,306,559
- ---------------------------------------------------------------------------------------------------------------------
65,000 Union County Improvement Authority (Linden Airport) 5.000 03/01/2028 65,750
- ---------------------------------------------------------------------------------------------------------------------
15,000 Union County Utilities Authority (County Deficiency) 5.000 06/15/2028 15,165
- ---------------------------------------------------------------------------------------------------------------------
240,000 Union County Utilities Authority (County Deficiency) 5.000 06/15/2028 242,635
- ---------------------------------------------------------------------------------------------------------------------
50,000 Union County Utilities Authority (County Deficiency) 5.000 06/15/2028 50,549
- ---------------------------------------------------------------------------------------------------------------------
15,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.000 06/01/2016 15,301
- ---------------------------------------------------------------------------------------------------------------------
225,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.000 06/01/2023 227,525
- ---------------------------------------------------------------------------------------------------------------------
80,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.350 06/01/2023 82,158
- ---------------------------------------------------------------------------------------------------------------------
25,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.375 06/01/2017 25,697
- ---------------------------------------------------------------------------------------------------------------------
70,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.375 06/01/2018 71,950
- ---------------------------------------------------------------------------------------------------------------------
150,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.375 06/01/2019 154,179
- ---------------------------------------------------------------------------------------------------------------------
60,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.375 06/01/2020 61,672
- ---------------------------------------------------------------------------------------------------------------------
15,000 University of Medicine & Dentistry of NJ 6.750 12/01/2009 15,057
------------
508,542,646
- ---------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--27.9%
2,500,000 Guam Government Waterworks Authority &
Wastewater System 5.875 07/01/2035 2,614,525
- ---------------------------------------------------------------------------------------------------------------------
3,900,000 Guam Government Waterworks Authority &
Wastewater System 6.000 07/01/2025 4,144,452
- ---------------------------------------------------------------------------------------------------------------------
1,250,000 Northern Mariana Islands Ports Authority, Series A 5.500 03/15/2031 1,237,438
- ---------------------------------------------------------------------------------------------------------------------
1,390,000 Northern Mariana Islands, Series A 6.250 03/15/2028 1,439,011
- ---------------------------------------------------------------------------------------------------------------------
5,000,000 Northern Mariana Islands, Series A 6.750 10/01/2033 5,557,700
- ---------------------------------------------------------------------------------------------------------------------
5,000,000 Puerto Rico Aqueduct & Sewer Authority 5.000 07/01/2019 5,098,300
- ---------------------------------------------------------------------------------------------------------------------
7,000,000 Puerto Rico Children's Trust Fund (TASC) 1 5.500 05/15/2039 7,189,420
- ---------------------------------------------------------------------------------------------------------------------
900,000 Puerto Rico Children's Trust Fund (TASC) 5.625 05/15/2043 926,307
- ---------------------------------------------------------------------------------------------------------------------
94,000,000 Puerto Rico Children's Trust Fund (TASC) 6.310 6 05/15/2050 5,939,860
31 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS Continued
$ 26,000,000 Puerto Rico Children's Trust Fund (TASC) 7.030% 6 05/15/2055 $ 866,060
- ---------------------------------------------------------------------------------------------------------------------
350,000 Puerto Rico Commonwealth GO 5.000 07/01/2025 353,976
- ---------------------------------------------------------------------------------------------------------------------
50,000 Puerto Rico Commonwealth GO 5.000 07/01/2026 50,254
- ---------------------------------------------------------------------------------------------------------------------
12,015,000 Puerto Rico Commonwealth GO 1 5.000 07/01/2027 12,115,806
- ---------------------------------------------------------------------------------------------------------------------
3,170,000 Puerto Rico Commonwealth GO 5.125 07/01/2031 3,212,446
- ---------------------------------------------------------------------------------------------------------------------
5,775,000 Puerto Rico Electric Power Authority, Series NN 5.125 07/01/2029 5,935,430
- ---------------------------------------------------------------------------------------------------------------------
30,000 Puerto Rico Highway & Transportation Authority, Series D 5.375 07/01/2036 32,457
- ---------------------------------------------------------------------------------------------------------------------
2,180,000 Puerto Rico Highway & Transportation Authority, Series G 5.000 07/01/2042 2,183,946
- ---------------------------------------------------------------------------------------------------------------------
1,075,000 Puerto Rico Highway & Transportation Authority, Series J 5.000 07/01/2034 1,084,750
- ---------------------------------------------------------------------------------------------------------------------
2,000,000 Puerto Rico Highway & Transportation Authority, Series J 5.125 07/01/2039 2,023,780
- ---------------------------------------------------------------------------------------------------------------------
4,000,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2027 4,041,400
- ---------------------------------------------------------------------------------------------------------------------
5,145,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2030 5,205,711
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2035 1,009,630
- ---------------------------------------------------------------------------------------------------------------------
9,500,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2040 9,528,025
- ---------------------------------------------------------------------------------------------------------------------
5,000,000 Puerto Rico Infrastructure 5.000 07/01/2037 5,039,150
- ---------------------------------------------------------------------------------------------------------------------
9,750,000 Puerto Rico Infrastructure 5.000 07/01/2041 9,771,840
- ---------------------------------------------------------------------------------------------------------------------
100,000 Puerto Rico ITEMECF (Ana G. Mendez University) 5.375 02/01/2019 102,039
- ---------------------------------------------------------------------------------------------------------------------
555,000 Puerto Rico ITEMECF (Ana G. Mendez University) 5.375 02/01/2029 563,408
- ---------------------------------------------------------------------------------------------------------------------
1,710,000 Puerto Rico ITEMECF (Cogeneration Facilities) 6.625 06/01/2026 1,861,181
- ---------------------------------------------------------------------------------------------------------------------
30,000 Puerto Rico ITEMECF (Dr. Pila Hospital) 6.250 08/01/2032 30,206
- ---------------------------------------------------------------------------------------------------------------------
265,000 Puerto Rico ITEMECF
(SEAM/Hospital Espanol Auxillio Obligated Group) 6.250 07/01/2024 267,086
- ---------------------------------------------------------------------------------------------------------------------
3,250,000 Puerto Rico Municipal Finance Agency, Series A 5.250 08/01/2025 3,373,923
- ---------------------------------------------------------------------------------------------------------------------
10,660,000 Puerto Rico Port Authority (American Airlines), Series A 6.250 06/01/2026 10,575,146
- ---------------------------------------------------------------------------------------------------------------------
1,990,000 Puerto Rico Port Authority (American Airlines), Series A 1 6.300 06/01/2023 1,985,284
- ---------------------------------------------------------------------------------------------------------------------
55,000 Puerto Rico Port Authority, Series D 6.000 07/01/2021 55,679
- ---------------------------------------------------------------------------------------------------------------------
10,000,000 Puerto Rico Public Buildings Authority 5.250 07/01/2029 10,356,300
- ---------------------------------------------------------------------------------------------------------------------
12,545,000 Puerto Rico Public Buildings Authority 5.250 07/01/2033 12,975,294
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Public Buildings Authority, Series D 5.125 07/01/2024 1,017,810
- ---------------------------------------------------------------------------------------------------------------------
1,435,000 Puerto Rico Public Buildings Authority, Series D 1 5.250 07/01/2036 1,472,683
- ---------------------------------------------------------------------------------------------------------------------
2,950,000 Puerto Rico Public Finance Corp., Series E 5.500 08/01/2029 3,087,057
- ---------------------------------------------------------------------------------------------------------------------
2,350,000 University of Puerto Rico, Series O 5.375 06/01/2030 2,360,270
- ---------------------------------------------------------------------------------------------------------------------
150,000 University of V.I., Series A 5.250 12/01/2023 153,392
- ---------------------------------------------------------------------------------------------------------------------
710,000 University of V.I., Series A 5.375 06/01/2034 735,106
- ---------------------------------------------------------------------------------------------------------------------
1,000,000 University of V.I., Series A 6.000 12/01/2024 1,061,360
- ---------------------------------------------------------------------------------------------------------------------
40,000 University of V.I., Series A 6.250 12/01/2029 42,838
- ---------------------------------------------------------------------------------------------------------------------
60,000 V.I. HFA, Series A 6.500 03/01/2025 60,379
- ---------------------------------------------------------------------------------------------------------------------
5,000,000 V.I. Public Finance Authority (Hovensa Coker) 1 6.500 07/01/2021 5,609,400
- ---------------------------------------------------------------------------------------------------------------------
540,000 V.I. Public Finance Authority, Series A 6.125 10/01/2029 581,499
- ---------------------------------------------------------------------------------------------------------------------
1,515,000 V.I. Public Finance Authority, Series A 6.375 10/01/2019 1,654,213
32 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS Continued
$ 300,000 V.I. Public Finance Authority, Series E 5.875% 10/01/2018 $ 313,119
- ---------------------------------------------------------------------------------------------------------------------
2,500,000 V.I. Public Finance Authority, Series E 6.000 10/01/2022 2,604,650
- ---------------------------------------------------------------------------------------------------------------------
11,100,000 V.I. Tobacco Settlement Financing Corp. 6.230 6 05/15/2035 1,895,436
- ---------------------------------------------------------------------------------------------------------------------
1,100,000 V.I. Tobacco Settlement Financing Corp. 6.500 6 05/15/2035 174,845
- ---------------------------------------------------------------------------------------------------------------------
2,050,000 V.I. Tobacco Settlement Financing Corp. 6.880 6 05/15/2035 293,519
- ---------------------------------------------------------------------------------------------------------------------
3,100,000 V.I. Tobacco Settlement Financing Corp. 7.630 6 05/15/2035 364,994
- ---------------------------------------------------------------------------------------------------------------------
290,000 V.I. Water & Power Authority 5.300 07/01/2018 293,715
- ---------------------------------------------------------------------------------------------------------------------
175,000 V.I. Water & Power Authority 5.300 07/01/2021 176,238
------------
162,699,743
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $650,116,578)--115.0% 671,242,389
- ---------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES--(15.0%) (87,479,107)
------------
NET ASSETS--100.0% $583,763,282
============
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. All or a portion of the security has been segregated for collateral to cover
borrowings. See Note 6 of accompanying Notes.
2. Illiquid security. The aggregate value of illiquid securities as of July 31,
2006 was $20,225, which represents less than 0.005% of the Fund's net assets.
See Note 5 of accompanying Notes.
3. Security represents the UNDERLYING MUNICIPAL bond on an inverse floating rate
security. The bond was purchased by the Fund and subsequently segregated and
transferred to a trust. See Note 1 of accompanying Notes.
4. Security has been restated. See Note 9 of accompanying Notes.
5. When-issued security or forward commitment to be delivered and settled after
July 31, 2006. See Note 1 of accompanying Notes.
6. Zero coupon bond reflects effective yield on the date of purchase.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
CMC Carolinas Medical Center
CMHS Clara Maass Health System
CMMC Clara Maass Medical Center
COP Certificates of Participation
CoMC Community Medical Center
DRIVERS Derivative Inverse Tax Exempt Receipts
EDA Economic Devel. Authority
GO General Obligation
HDC Housing Devel. Corp.
HFA Housing Financing Agency
HFC Housing Finance Corp.
IPCFA Industrial Pollution Control Financing Authority
ITEMECF Industrial, Tourist, Educational, Medical and Environmental
Community Facilities
JFK John Fitzgerald Kennedy
KMCC Kensington Manor Care Center
MHC Meridian Hospitals Corp.
NY/NJ New York/New Jersey
ONP Ocean Nursing Pavillion, Inc.
PA/NJ Pennsylvania/New Jersey
PCFA Pollution Control Finance Authority
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
RWJ Robert Wood Johnson
SEAM Sociedad Espanola de Auxilio Mutuo
TASC Tobacco Settlement Asset-Backed Bonds
V.I. United States Virgin Islands
YMCA Young Men's Christian Assoc.
33 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY VALUE 1 PERCENT 1
- --------------------------------------------------------------------------------
Tobacco Settlement Payments $ 106,379,991 15.8%
Education 93,943,005 14.0
Hospital/Health Care 53,627,200 8.0
Airlines 49,380,385 7.4
Marine/Aviation Facilities 45,496,234 6.8
Water Utilities 38,720,867 5.8
Higher Education 38,109,109 5.7
Municipal Leases 36,087,582 5.4
Adult Living Facilities 31,967,946 4.8
General Obligation 31,162,260 4.6
Sales Tax Revenue 25,736,513 3.8
Highways/Railways 25,165,080 3.7
Electric Utilities 20,136,518 3.0
Single Family Housing 15,899,945 2.4
Pollution Control 14,585,726 2.2
Hotels, Restaurants & Leisure 12,935,296 1.9
Manufacturing, Non-Durable Goods 7,779,072 1.2
Gas Utilities 6,256,981 0.9
Resource Recovery 5,984,909 0.9
Manufacturing, Durable Goods 4,198,204 0.6
Multifamily Housing 3,070,126 0.5
Special Tax 2,912,325 0.4
Sports Facility Revenue 790,744 0.1
Student Loans 653,790 0.1
Sewer Utilities 237,457 0.0
Not-for-Profit Organization 25,124 0.0
-----------------------------
Total $ 671,242,389 100.0%
=============================
1. Restated. See Note 9 of accompanying Notes.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2006
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------
Investments, at value (cost $650,116,578)--see accompanying statement of investments $ 671,242,389
- ------------------------------------------------------------------------------------------------------
Cash 567,438
- ------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 24,563,200
Interest 7,754,310
Shares of beneficial interest sold 5,682,865
Other 10,357
---------------
Total assets 709,820,559
- ------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Payable for short-term floating rate notes issued (See Note 1) 101,645,000
Payable on borrowings (See Note 6) 15,100,000
Investments purchased (including $6,435,000 purchased on a when-issued basis
or forward commitment) 7,303,560
Shares of beneficial interest redeemed 1,350,075
Dividends 430,731
Distribution and service plan fees 71,345
Trustees' compensation 41,017
Shareholder communications 28,102
Interest expense 26,365
Transfer and shareholder servicing agent fees 22,343
Other 38,739
---------------
Total liabilities 126,057,277
- ------------------------------------------------------------------------------------------------------
NET ASSETS $ 583,763,282
===============
- ------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------
Paid-in capital $ 569,284,641
- ------------------------------------------------------------------------------------------------------
Accumulated net investment loss (414,967)
- ------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (6,232,203)
- ------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 21,125,811
---------------
NET ASSETS $ 583,763,282
===============
35 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$371,294,865 and 31,203,583 shares of beneficial interest outstanding) $ 11.90
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $ 12.49
- ------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $73,887,238
and 6,201,660 shares of beneficial interest outstanding) $ 11.91
- ------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $138,581,179
and 11,637,962 shares of beneficial interest outstanding) $ 11.91
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2006
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------
Interest $ 28,247,516
- ------------------------------------------------------------------------------------------------------
Other income 240
---------------
Total investment income 28,247,756
- ------------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------------
Management fees 2,537,206
- ------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 420,711
Class B 612,026
Class C 938,089
- ------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 113,870
Class B 42,247
Class C 49,723
- ------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 33,173
Class B 11,792
Class C 13,806
- ------------------------------------------------------------------------------------------------------
Interest expense and fees on short-term floating rate notes issued (See Note 1) 2,905,165
- ------------------------------------------------------------------------------------------------------
Interest expense on borrowings 560,523
- ------------------------------------------------------------------------------------------------------
Trustees' compensation 25,929
- ------------------------------------------------------------------------------------------------------
Custodian fees and expenses 99
- ------------------------------------------------------------------------------------------------------
Other 123,026
---------------
Total expenses 8,387,385
Less waivers and reimbursements of expenses (313,080)
---------------
Net expenses 8,074,305
- ------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 20,173,451
- ------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS
- ------------------------------------------------------------------------------------------------------
Net realized loss on investments (1,544,971)
- ------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (845,556)
- ------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 17,782,924
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
(As restated, see Note 9)
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2006 2005
- ---------------------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------------------
Net investment income $ 20,173,451 $ 11,777,338
- ---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (1,544,971) 359,429
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (845,556) 25,172,214
---------------------------------
Net increase in net assets resulting from operations 17,782,924 37,308,981
- ---------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (14,004,495) (7,660,240)
Class B (2,817,386) (2,857,475)
Class C (4,277,840) (1,998,017)
- ---------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 172,386,035 92,338,986
Class B 12,154,635 4,822,489
Class C 69,181,165 42,066,514
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Total increase 250,405,038 164,021,238
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 333,358,244 169,337,006
---------------------------------
End of period (including accumulated net investment income (loss)
of $(414,967) and $511,303, respectively) $ 583,763,282 $ 333,358,244
=================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF CASH FLOWS For the Year Ended July 31, 2006
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 17,782,924
- --------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from
operations to net cash used in operating activities:
Purchase of investment securities (365,658,602)
Proceeds from disposition of investment securities 91,707,293
Short-term investment securities, net (25,687,352)
Premium amortization 1,836,853
Discount accretion (339,081)
Net realized loss on investments 1,544,971
Net change in unrealized appreciation on investments 845,556
Increase in interest receivable (3,597,806)
Increase in receivable for securities sold (21,990,066)
Increase in other assets (3,208)
Decrease in payable for securities purchased (2,319,051)
Increase in payable for accrued expenses 73,420
---------------
Net cash used in operating activities (305,804,149)
- --------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- --------------------------------------------------------------------------------
Proceeds from bank borrowing 239,400,000
Payments on bank borrowing (235,900,000)
Proceeds from short-term floating rate notes issued 69,615,000
Proceeds from shares sold 325,904,277
Payment on shares redeemed (84,379,174)
Cash distributions paid (8,766,166)
---------------
Net cash provided by financing activities 305,873,937
- --------------------------------------------------------------------------------
Net increase in cash 69,788
- --------------------------------------------------------------------------------
Cash, beginning balance 497,650
---------------
Cash, ending balance $ 567,438
===============
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $12,141,979
Cash paid for interest on bank borrowings--$554,187.
Cash paid for interest on short-term floating rate notes issued--$2,905,165.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
(As restated, see Note 9)
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.03 $ 10.76 $ 10.51 $ 10.99 $ 10.89
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .55 1 .62 1 .67 .67 .53
Net realized and unrealized gain (loss) (.09) 1.32 .23 (.52) .08
---------------------------------------------------------------------------
Total from investment operations .46 1.94 .90 .15 .61
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.59) (.67) (.65) (.63) (.51)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.90 $ 12.03 $ 10.76 $ 10.51 $ 10.99
===========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.93% 18.46% 8.63% 1.21% 5.79%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 371,295 $ 200,831 $ 94,214 $ 61,825 $ 47,305
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 287,248 $ 133,634 $ 78,828 $ 54,811 $ 42,809
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.67% 5.41% 6.28% 6.24% 4.88%
Expenses excluding interest
and fees on short-term floating rate
notes issued 0.90% 0.91% 0.98% 1.02% 0.84%
Interest and fees on short-term
floating rate notes issued 4 0.63% 0.35% 0.32% 0.26% 0.10%
---------------------------------------------------------------------------
Total expenses 1.53% 1.26% 1.30% 1.28% 0.94%
Expenses after payments and waivers and
reduction to custodian expenses 1.47% 1.06% 1.10% 1.08% 0.73% 5
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 19% 7% 14% 62% 25%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. 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 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.
3. Annualized for periods of less than one full year.
4. Interest and fee expense relates to the Fund's liability for short-term
floating rate notes issued in conjunction with inverse floating rate security
transactions. See Note 1 of accompanying Notes.
5. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
CLASS B YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.05 $ 10.78 $ 10.52 $ 11.00 $ 10.90
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .47 1 .54 1 .60 .59 .45
Net realized and unrealized gain (loss) (.11) 1.31 .23 (.53) .08
---------------------------------------------------------------------------
Total from investment operations .36 1.85 .83 .06 .53
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.50) (.58) (.57) (.54) (.43)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.91 $ 12.05 $ 10.78 $ 10.52 $ 11.00
===========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.03% 17.53% 7.92% 0.46% 4.99%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 73,887 $ 62,399 $ 51,329 $ 46,912 $ 43,888
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 68,065 $ 56,755 $ 50,920 $ 45,226 $ 41,532
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 3.93% 4.74% 5.54% 5.46% 4.12%
Expenses excluding interest
and fees on short-term floating rate
notes issued 1.69% 1.68% 1.73% 1.78% 1.60%
Interest and fees on short-term
floating rate notes issued 4 0.63% 0.35% 0.32% 0.26% 0.10%
---------------------------------------------------------------------------
Total expenses 2.32% 2.03% 2.05% 2.04% 1.70%
Expenses after payments and waivers and
reduction to custodian expenses 2.24% 1.83% 1.85% 1.84% 1.49% 5
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 19% 7% 14% 62% 25%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. 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 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.
3. Annualized for periods of less than one full year.
4. Interest and fee expense relates to the Fund's liability for short-term
floating rate notes issued in conjunction with inverse floating rate security
transactions. See Note 1 of accompanying Notes.
5. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FINANCIAL HIGHLIGHTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.04 $ 10.77 $ 10.51 $ 10.99 $ 10.89
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .46 1 .53 1 .59 .59 .44
Net realized and unrealized gain (loss) (.09) 1.32 .24 (.53) .09
---------------------------------------------------------------------------
Total from investment operations .37 1.85 .83 .06 .53
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.50) (.58) (.57) (.54) (.43)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.91 $ 12.04 $ 10.77 $ 10.51 $ 10.99
===========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.14% 17.54% 7.91% 0.45% 4.99%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 138,581 $ 70,128 $ 23,795 $ 17,784 $ 12,664
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 104,423 $ 40,717 $ 20,470 $ 16,770 $ 9,831
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 3.90% 4.57% 5.53% 5.49% 4.10%
Expenses excluding interest
and fees on short-term floating rate
notes issued 1.66% 1.67% 1.73% 1.78% 1.60%
Interest and fees on short-term
floating rate notes issued 4 0.63% 0.35% 0.32% 0.26% 0.10%
---------------------------------------------------------------------------
Total expenses 2.29% 2.02% 2.05% 2.04% 1.70%
Expenses after payments and waivers and
reduction to custodian expenses 2.23% 1.82% 1.85% 1.84% 1.49% 5
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 19% 7% 14% 62% 25%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. 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 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.
3. Annualized for periods of less than one full year.
4. Interest and fee expense relates to the Fund's liability for short-term
floating rate notes issued in conjunction with inverse floating rate security
transactions. See Note 1 of accompanying Notes.
5. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
42 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer New Jersey 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 New Jersey income taxes for individual
investors as is 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 may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities listed or traded on National
Stock Exchanges or other domestic exchanges are valued based on the last sale
price of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued. In
the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing "bid" and "asked"
prices, and if not, at the closing bid price. Securities traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, as identified by the portfolio pricing service,
prior to the time when the Fund's assets are valued. In the absence of a sale,
the security is valued at the official closing price on the principal exchange.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Futures contracts traded on a
commodities or futures exchange will be valued at the final settlement price or
official closing price on the principal exchange as reported by such principal
exchange at its trading session ending at, or most recently prior to, the time
when the Fund's assets are valued. Securities (including restricted securities)
for which market quotations are not readily available are valued at their fair
value. Foreign and domestic securities whose
43 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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).
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment take place generally at least ten days or more after the
trade date. Normally the settlement date occurs within six months after the
trade date; however, the Fund may, from time to time, purchase securities whose
settlement date extends six months or more beyond trade date. During this
period, such securities do not earn interest, are subject to market fluctuation
and may increase or decrease in value prior to their delivery. The Fund
maintains internally designated assets with a market value equal to or greater
than the amount of its purchase commitments. The purchase of securities on a
when-issued basis or forward commitment may increase the volatility of the
Fund's net asset value to the extent the Fund executes such transactions while
remaining substantially fully invested. The Fund may also sell securities that
it purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of July 31, 2006, the Fund had purchased $6,435,000 of
securities issued on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
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 will not invest more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $47,922,940 as of July 31, 2006, which represents
6.75% of the Fund's total assets.
Certain inverse floating rate securities are created when the Fund
purchases and subsequently transfers a municipal bond security (the "municipal
bond") to a broker dealer. The municipal bond is typically a fixed rate
security. The broker dealer (the "sponsor") creates a trust (the "Trust") and
deposits the municipal bond. The Trust issues short-term floating rate notes
available to third parties and a residual interest in the municipal bond
(referred to as an "inverse floating rate security") to the Fund. The terms of
these inverse floating rate securities grant the Fund the right to require that
the Trust issuing the inverse floating rate security compel a tender of the
short-term floating rate notes to facilitate the Fund's repurchase of the
underlying municipal bond. Following such a request, the Fund pays the sponsor
the principal amount due to the holders of the short-term floating rate notes
issued by the Trust and exchanges the inverse floating rate security for the
underlying
44 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
municipal bond. These transactions are considered secured borrowings for
financial reporting purposes. As a result of such accounting treatments, the
Fund includes the municipal bond position on its Statement of Investments (but
does not separately include the inverse floating rate securities received). The
Fund also includes the value of the municipal bond and a payable amount equal to
the short-term floating rate notes issued by the Trust on its Statement of
Assets and Liabilities. The interest rates on these short-term floating rate
notes reset periodically, usually weekly. The holders of these short-term
floating rate notes have the option to tender their investment to the sponsor or
the Trust's liquidity provider, for redemption at par at each reset date. Income
from the municipal bond position and the interest expense on the payable for the
short-term floating rate notes issued by the Trust are recorded on the Fund's
Statement of Operations. At July 31, 2006 municipal bond holdings with a value
of $149,567,940 shown on the Fund's Statement of Investments are held by such
Trusts and serve as collateral for the $101,645,000 in short-term floating rate
notes issued and outstanding at that date. See Note 9.
At July 31, 2006, the Fund's residual exposure to these types of inverse
floating rate securities were as follows:
PRINCIPAL MATURITY VALUE AS OF
AMOUNT INVERSE FLOATER 1 COUPON 2 DATE JULY 31, 2006
- ---------------------------------------------------------------------------------------------
$ 2,000,000 NJ EDA (Public Schools Small
Project Loan Program) RITES 6.394% 9/1/24 $ 2,552,600
2,170,000 NJ EDA RITES 3 6.491 3/1/27 2,454,010
9,045,000 NJ EDA ROLs 9.105 3/1/30 10,261,372
4,520,000 NJ EDA ROLs 9.105 3/1/28 5,153,794
2,000,000 NJ Health Care Facilities
Financing Authority (Englewood
Hospital & Medical Center)
RITES 7.466 8/1/25 2,390,440
3,870,000 NJ Health Care Facilities Financing
Authority DRIVERS 8.126 9/15/28 4,398,913
9,600,000 NJ Tobacco Settlement
Financing Corp. RITES 7.117 6/1/42 10,804,320
2,500,000 NJ Transit Corp. ROLs, Series 15 8.500 9/15/14 2,841,225
3,930,000 Port Authority NY/NJ RITES 6.526 9/1/24 4,397,906
2,305,000 Port Authority NY/NJ,
238th Series ROLs 9.511 12/15/32 2,668,360
-------------
$ 47,922,940
=============
1. For a list of abbreviations used in the Inverse Floater table see the
Portolio Abbreviation table on page 33 of the Statement of Investments.
2. Represents the current interest rate for a variable rate bond known as an
"inverse floater."
3. Security is subject to a shortfall and forbearance agreement.
The Fund enters into shortfall and forbearance agreements with the sponsors of
certain inverse floaters held by the Fund. These agreements commit the Fund to
reimburse the sponsor of the inverse floater, in certain circumstances, for the
amount of the difference between the liquidation value of the underlying
security (which is the basis of the inverse floater) and the principal amount
due to the holders of the floating rate notes issued by
45 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
the Trust in conjunction with the inverse floating rate security. Under the
standard terms of an inverse floating rate security, absent such a shortfall and
forbearance agreement, the Fund would not be required to make such a
reimbursement. The Manager monitors the Fund's potential exposure with respect
to these agreements on a daily basis and intends to take action to terminate the
Fund's investment in such inverse floating rate securities, if it deems it
appropriate to do so. As of July 31, 2006, in addition to the exposure detailed
in the preceding table, the Fund's maximum exposure under such agreements is
estimated at approximately $7,000,000.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. 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
--------------------------------------------------------------------------
$55,841 $-- $6,067,308 $20,960,913
1. As of July 31, 2006, the Fund had $4,267,103 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, 2006, details
of the capital loss carryforwards were as follows:
46 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
EXPIRING
-------------------------------
2009 $ 2,565,622
2010 1,551,532
2012 115,750
2014 34,199
-----------
TOTAL $ 4,267,103
===========
2. As of July 31, 2006, the Fund had $1,800,205 of post-October losses available
to offset future realized capital gains, if any. Such losses, if unutilized,
will expire in 2015.
3. During the fiscal year ended July 31, 2006, the Fund did not utilize any
capital loss carryforward.
4. During the fiscal year ended July 31, 2005, the Fund utilized $359,429 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, 2006 and
July 31, 2005 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2006 JULY 31, 2005
- -------------------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $21,099,721 $12,515,732
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, 2006 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 $ 548,636,476
=============
Gross unrealized appreciation $ 23,614,240
Gross unrealized depreciation (2,653,327)
-------------
Net unrealized appreciation $ 20,960,913
=============
- --------------------------------------------------------------------------------
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,
2006, the Fund's projected benefit obligations were increased by $16,386 and
payments of $2,176 were made to retired trustees, resulting in an accumulated
liability of $32,532 as of July 31, 2006.
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
47 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts, to the extent they are not
offset by positive cash balances maintained by the Fund, at a rate equal to the
Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item,
if applicable, represents earnings on cash balances maintained by the Fund
during the period. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with 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
48 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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, 2006 YEAR ENDED JULY 31, 2005
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
CLASS A
Sold 18,682,666 $ 221,763,770 9,080,461 $ 105,520,260
Dividends and/or
distributions reinvested 685,948 8,140,403 376,131 4,339,946
Redeemed (4,853,455) (57,518,138) (1,520,910) (17,521,220)
------------------------------------------------------------
Net increase 14,515,159 $ 172,386,035 7,935,682 $ 92,338,986
============================================================
- ------------------------------------------------------------------------------------------------
CLASS B
Sold 1,835,126 $ 21,799,263 1,585,776 $ 18,264,106
Dividends and/or
distributions reinvested 136,533 1,622,906 142,260 1,635,223
Redeemed (948,989) (11,267,534) (1,312,398) (15,076,840)
------------------------------------------------------------
Net increase 1,022,670 $ 12,154,635 415,638 $ 4,822,489
============================================================
- ------------------------------------------------------------------------------------------------
CLASS C
Sold 7,000,353 $ 83,208,814 3,958,354 $ 46,014,401
Dividends and/or
distributions reinvested 200,285 2,378,670 90,223 1,044,143
Redeemed (1,385,935) (16,406,319) (434,529) (4,992,030)
------------------------------------------------------------
Net increase 5,814,703 $ 69,181,165 3,614,048 $ 42,066,514
============================================================
- --------------------------------------------------------------------------------
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, 2006, were as follows:
PREVIOUSLY STATED RESTATED, SEE NOTE 9
PURCHASES SALES PURCHASES SALES
- -------------------------------------------------------------------------------------
Investment securities $338,672,706 $165,508,680 $365,658,602 $91,707,293
- --------------------------------------------------------------------------------
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
average annual rate as shown in the following table:
FEE SCHEDULE
--------------------------------------------------
Up to $200 million of net assets 0.60%
Next $100 million of net assets 0.55
Next $200 million of net assets 0.50
Next $250 million of net assets 0.45
Next $250 million of net assets 0.40
Over $1 billion of net assets 0.35
49 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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, 2006, the Fund paid $196,206
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
periodically at an annual rate of up to 0.15% of the average annual net assets
of Class A shares of the Fund. The Board of Trustees can increase that fee to
0.25% of average net assets without shareholder approval. Shareholders will be
notified of any such change. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions periodically for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
periods. Fees incurred by the Fund under the Plan are detailed in the Statement
of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B 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% on Class B and Class C
shares. The Distributor also receives a service fee of up to 0.15% under each
plan. However, the Board of Trustees can increase that fee to 0.25% of average
annual net assets without shareholder approval. Shareholders will be notified of
any such change. 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, 2006 for Class B and Class C shares were $2,686,348 and $1,707,308,
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 following table for the period
indicated.
50 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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, 2006 $549,821 $10,245 $107,185 $55,855
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager had voluntarily agreed to
waive a portion of its management fee so the management fees will not exceed
0.40% of average annual net assets for each class of shares. During the year
ended July 31, 2006, the Manager waived $313,080 of its management fees.
Effective January 1, 2006 this waiver was withdrawn.
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. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of July 31, 2006, 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. Securities that are
illiquid are marked with the applicable footnote on the Statement of
Investments.
- --------------------------------------------------------------------------------
6. BORROWINGS
The Fund can borrow money from banks in amounts up to one-third of its total
assets (including the amount borrowed) less all liabilities and indebtedness
other than borrowings 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 a Revolving Credit and Security Agreement (the
"Agreement") with a conduit lender and a bank which enables it to participate
with certain other Oppenheimer funds in a committed, secured borrowing facility
that permits borrowings of up to $900 million, collectively. To secure the loan,
the Fund pledges investment securities in accordance with the terms of the
Agreement. Interest is charged to the Fund, based on its borrowings, at current
commercial paper issuance rates (5.3126% as of July 31, 2006). The Fund pays
additional fees of 0.30% per annum on its outstanding borrowings to manage and
administer the facility and is allocated its pro-rata share of a 0.13% per annum
commitment fee for a liquidity backstop facility with respect to the $900
million facility size.
For the year ended July 31, 2006, the average daily loan balance was
$12,612,877 at an average daily interest rate of 4.313%. The Fund had borrowings
outstanding of $15,100,000 at July 31, 2006 at an interest rate of 5.3126%. The
Fund had gross borrowings and gross
51 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. BORROWINGS Continued
loan repayments of $239,400,000 and $235,900,000, respectively, during the year
ended July 31, 2006. The maximum amount of borrowings outstanding at any
month-end during the year ended July 31, 2006 was $23,200,000. The Fund paid
$54,534 in fees and $554,187 in interest during the year ended July 31, 2006.
- --------------------------------------------------------------------------------
7. RECENT ACCOUNTING PRONOUNCEMENT
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise's financial statements in accordance with FASB Statement No. 109,
ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not be fully realized.
FIN 48 is effective for fiscal years beginning after December 15, 2006. As of
July 31, 2006, the Manager is evaluating the implications of FIN 48. Its impact
in the Fund's financial statements has not yet been determined.
- --------------------------------------------------------------------------------
8. LITIGATION
A consolidated amended complaint was filed as a putative class action against
the Manager and the Transfer Agent and other defendants (including 51 of the
Oppenheimer funds including the Fund) in the U.S. District Court for the
Southern District of New York on January 10, 2005 and was amended on March 4,
2005. The complaint alleged, among other things, that the Manager charged
excessive fees for distribution and other costs, and that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers of the
funds breached their fiduciary duties to fund shareholders under the Investment
Company Act of 1940 and at common law. The plaintiffs sought unspecified
damages, an accounting of all fees paid, and an award of attorneys' fees and
litigation expenses.
In response to the defendants' motions to dismiss the suit, seven of the
eight counts in the complaint, including the claims against certain of the
Oppenheimer funds, as nominal defendants, and against certain present and former
Directors, Trustees and Officers of the funds, and the Distributor, as
defendants, were dismissed with prejudice, by court order dated March 10, 2006,
and the remaining count against the Manager and the Transfer Agent was dismissed
with prejudice by court order dated April 5, 2006. The plaintiffs filed an
appeal of those dismissals on May 11, 2006.
The Manager believes that the allegations contained in the complaint are
without merit and that there are substantial grounds to sustain the district
court's rulings. The Manager also believes that it is premature to render any
opinion as to the likelihood of an outcome unfavorable to it, the funds, the
Directors/Trustees or the Officers on the appeal of the decisions of the
district court, and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss.
52 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
9. RESTATEMENT
Subsequent to the issuance of the July 31, 2006 financial statements, the
Manager determined that transfers of certain municipal bond securities by the
Fund to trusts in connection with its investment in inverse floating rate
securities during the fiscal years ended July 31, 2002 through 2006, do not
qualify as sales under Statement of Financial Accounting Standard No. 140,
ACCOUNTING FOR TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS
OF LIABILITIES, and should have been accounted for as secured borrowings.
Accordingly, the Fund has restated its July 31, 2006 Statement of Investments,
its July 31, 2006 Statement of Assets and Liabilities, its fiscal 2006 Statement
of Operations, its fiscal 2006 Statements of Changes in Net Assets and its
fiscal 2002 through fiscal 2006 Financial Highlights. In connection with the
reinstatement, the Fund also included a Statement of Cash Flows for its fiscal
year ending July 31, 2006.
The restatement has no effect on the Fund's previously reported net
assets, net asset values per share or total return.
STATEMENT OF ASSETS AND LIABILITIES AS OF JULY 31, 2006
PREVIOUSLY REPORTED RESTATED
- ----------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value $ 569,597,389 $ 671,242,389
Cost of investments 548,636,476 650,116,578*
Total assets 608,175,559 709,820,559
LIABILITIES
Payable for short-term floating rate notes issued N/A 101,645,000
Total liabilities 24,412,277 126,057,277
NET ASSETS
Accumulated net realized loss on investments (6,067,305) (6,232,203)*
Net unrealized appreciation on investments 20,960,913 21,125,811*
* The restated amounts include an increase to "Accumulated net realized loss on
investments," a decrease to "Cost of investments" and an increase to "Net
unrealized appreciation on investments" in the amount of $454,331 related to
reversals of gains previously realized in the Fund's fiscal years prior to 2005.
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2006
PREVIOUSLY REPORTED RESTATED
- ----------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 25,342,351 $ 28,247,516
Total investment income 25,342,591 28,247,756
EXPENSES
Interest expense and fees from short-term floating rate notes issued N/A 2,905,165
Total expenses 5,482,220 8,387,385
Net expenses 5,169,140 8,074,305
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss on investments (1,834,404) (1,544,971)
Net change in unrealized appreciation on investments (556,123) (845,556)
53 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
9. RESTATEMENT Continued
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDING JULY 31,
2006 AND 2005
OPERATIONS 2006 PREVIOUSLY REPORTED RESTATED
- ----------------------------------------------------------------------------------------------------------
Net realized loss $ (1,834,404) $ (1,544,971)
Net change in unrealized appreciation (556,123) (845,556)
FINANCIAL HIGHLIGHTS FOR THE YEARS ENDING JULY 31,
2006, 2005, 2004, 2003 AND 2002
RATIOS TO AVERAGE INTEREST AND EXPENSES AFTER
NET ASSETS: FEES ON PAYMENTS AND
SHORT-TERM WAIVERS AND PORTFOLIO
FLOATING RATE REDUCTION TO TURNOVER
NOTES ISSUED TOTAL EXPENSES CUSTODIAN EXPENSES RATE
- ---------------------------------------------------------------------------------------------
CLASS A
2006 Previously
Reported N/A 0.90% 0.84% 44%
2006 Restated 0.63% 1.53% 1.47% 19%
2005 Previously
Reported N/A 0.91% 0.71% 8%
2005 Restated 0.35% 1.26% 1.06% 7%
2004 Previously
Reported N/A 0.98% 0.78% 25%
2004 Restated 0.32% 1.30% 1.10% 14%
2003 Previously
Reported N/A 1.02% 0.82% 93%
2003 Restated 0.26% 1.28% 1.08% 62%
2002 Previously
Reported N/A 0.84% 0.63% 26%
2002 Restated 0.10% 0.94% 0.73% 25%
- ---------------------------------------------------------------------------------------------
CLASS B
2006 Previously
Reported N/A 1.69% 1.61% 44%
2006 Restated 0.63% 2.32% 2.24% 19%
2005 Previously
Reported N/A 1.68% 1.48% 8%
2005 Restated 0.35% 2.03% 1.83% 7%
2004 Previously
Reported N/A 1.73% 1.53% 25%
2004 Restated 0.32% 2.05% 1.85% 14%
2003 Previously
Reported N/A 1.78% 1.58% 93%
2003 Restated 0.26% 2.04% 1.84% 62%
2002 Previously
Reported N/A 1.60% 1.39% 26%
2002 Restated 0.10% 1.70% 1.49% 25%
54 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
RATIOS TO AVERAGE INTEREST AND EXPENSES AFTER
NET ASSETS: FEES ON PAYMENTS AND
SHORT-TERM WAIVERS AND PORTFOLIO
FLOATING RATE REDUCTION TO TURNOVER
NOTES ISSUED TOTAL EXPENSES CUSTODIAN EXPENSES RATE
- ---------------------------------------------------------------------------------------------
CLASS C
2006 Previously
Reported N/A 1.66% 1.60% 44%
2006 Restated 0.63% 2.29% 2.23% 19%
2005 Previously
Reported N/A 1.67% 1.47% 8%
2005 Restated 0.35% 2.02% 1.82% 7%
2004 Previously
Reported N/A 1.73% 1.53% 25%
2004 Restated 0.32% 2.05% 1.85% 14%
2003 Previously
Reported N/A 1.78% 1.58% 93%
2003 Restated 0.26% 2.04% 1.84% 62%
2002 Previously
Reported N/A 1.60% 1.39% 26%
2002 Restated 0.10% 1.70% 1.49% 25%
While the Statements of Assets and Liabilities as of July 31, 2005, 2004, 2003
and 2002 (not included herein) have not been reissued to give effect to the
restatement, the principal effects of the restatement would be to increase
investments at value and to add a liability for short-term floating rate notes
issued by corresponding amounts at each year end, with no resulting effect on
previously reported Fund net assets. While the Statements of Operations for the
years ended July 31, 2005, 2004, 2003 and 2002 (not included herein) have not
been reissued to give effect to the restatement, the principal effects of the
restatement would be to increase interest income and interest expense and fees
by corresponding amounts each year, with no effect on the previously reported
net increase in net assets resulting from operations.
55 | OPPENHEIMER NEW JERSEY 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 New Jersey Municipal Fund (one of the portfolios constituting the
Oppenheimer Multi-State Municipal Trust), including the statement of
investments, as of July 31, 2006, and the related statements of operations and
cash flows for the year then ended, the statements of changes in net assets for
each of the years in the two-year period then ended, and the financial
highlights for each of the years in the five-year 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, 2006, 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 New Jersey Municipal Fund as of July 31, 2006, the results of its
operations and its cash flows for the year then ended, the changes in its net
assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period then ended,
in conformity with U.S. generally accepted accounting principles.
As discussed in Note 9, the Fund has restated its financial statements and
financial highlights as of and for the year ended July 31, 2006.
KPMG LLP
Denver, Colorado
September 14, 2006 (Except for Notes 3 and 9, for which the date is February 20,
2007.)
56 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2007, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2006. 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 fiscal year ended July
31, 2006 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.
57 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
58 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/
FUND, LENGTH OF SERVICE, AGE DIRECTORSHIPS HELD; NUMBER OF PORTFOLIOS IN THE FUND COMPLEX CURRENTLY
OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY,
TRUSTEES CENTENNIAL, CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM
OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Director of American Commercial Lines (barge company) (since January 2005);
Chairman of the Board Attorney at Hogan & Hartson (law firm) (since June 1993); Director of
of Trustees (since 2003), Covanta Holding Corp. (waste-to-energy company) (since 2002); Director of
Trustee (since 1993) Weyerhaeuser Corp. (1999-April 2004); Director of Caterpillar, Inc.
Age: 75 (1993-December 2002); Director of ConAgra Foods (1993-2001); Director of
Texas Instruments (1993-2001); Director of FMC Corporation (1993-2001).
Oversees 43 portfolios in the OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research
Trustee (since 2005) foundation) (since 2005); Director of ICI Education Foundation (education
Age: 65 foundation) (since October 1991); President of the Investment Company
Institute (trade association) (October 1991-June 2004); Director of ICI
Mutual Insurance Company (insurance company) (October 1991-June 2004).
Oversees 43 portfolios in the OppenheimerFunds complex.
ROBERT G. GALLI, A director or trustee of other Oppenheimer funds. Oversees 53 portfolios in
Trustee (since 1993) the OppenheimerFunds complex.
Age: 73
PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for International Affairs (since 2002) and
Trustee (since 1999) Member (since 1979) of the National Academy of Sciences; Council on Foreign
Age: 67 Relations (since 2002); Director of GSI Lumonics Inc. (precision medical
equipment supplier) (since 2001); Senior Advisor of The Andrew W. Mellon
Foundation (since 2001); Chair of Science Initiative Group (since 1999);
Member of the American Philosophical Society (since 1996); Trustee of
Woodward Academy (since 1983); Foreign Associate of Third World Academy of
Sciences; Director of the Institute for Advanced Study (1991-2004); Director
of Bankers Trust New York Corporation (1994-1999); Provost at Duke
University (1983-1991). Oversees 43 portfolios in the OppenheimerFunds
complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October
Trustee (since 2004) 1998); and Senior Vice President and General Auditor of American Express
Age: 63 Company (financial services company) (July 1998-February 2003). Oversees 43
portfolios in the OppenheimerFunds complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp. (privately-held financial
Trustee (since 2002) adviser) (since 2002); Managing Director of Carmona Motley, Inc.
Age: 54 (privately-held financial adviser) (since January 2002); Managing Director
of Carmona Motley Hoffman Inc. (privately-held financial adviser) (January
1998-December 2001); Member of the Finance and Budget Committee of the
Council on Foreign Relations, the Investment Committee of the Episcopal
Church of America, the Investment Committee and Board of Human Rights Watch
and the Investment Committee of Historic Hudson Valley. Oversees 43
portfolios in the OppenheimerFunds complex.
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company)
Trustee (since 1989) (February 1972-October 2005); Former Director of Prime Retail, Inc. (real
Age: 79 estate investment trust), Dominion Energy Inc. (electric power and oil & gas
producer), Lumberman's Mutual Casualty Company, American Motorists Insurance
59 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
KENNETH A. RANDALL, Company and American Manufacturers Mutual Insurance Company; Former
Continued President and Chief Executive Officer of The Conference Board, Inc.
(international economic and business research). Oversees 43 portfolios in
the OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance
Trustee (since 1989) consulting and executive recruiting) (since 1993); Life Trustee of
Age: 74 International House (non-profit educational organization); Founder, Chairman
and Chief Executive Officer of Russell Reynolds Associates, Inc.
(1969-1993); Banker at J.P. Morgan & Co. (1958-1966); 1st Lt. Strategic Air
Command, U.S. Air Force (1954-1958). Oversees 43 portfolios in the
OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992)
Trustee (since 2005) and Cathco (since 1996); Director of Lakes Environmental Association (since
Age: 65 1996); Member of the Investment Committee of the Associated Jewish Charities
of Baltimore (since 1994); Director of Fortis/Hartford mutual funds
(1994-December 2001). Oversees 43 portfolios in the OppenheimerFunds complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas exploration and
Trustee (since 2005) production company) (since 1994); Vice President, Secretary and Treasurer of
Age: 58 Wold Trona Company, Inc. (soda ash processing and production) (since 1996);
Vice President of Wold Talc Company, Inc. (talc mining) (since 1999);
Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979);
Director and Chairman of the Denver Branch of the Federal Reserve Bank of
Kansas City (1993-1999); and Director of PacifiCorp. (electric utility)
(1995-1999). Oversees 43 portfolios in the OppenheimerFunds complex.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund) (since September
Trustee (since 2005) 1995); Director of Special Value Opportunities Fund, LLC (registered
Age: 63 investment company) (since September 2004); Member of Zurich Financial
Investment Advisory Board (insurance) (since October 2004); Board of
Governing Trustees of The Jackson Laboratory (non-profit) (since August
1990); Trustee of the Institute for Advanced Study (non-profit educational
institute) (since May 1992); Special Limited Partner of Odyssey Investment
Partners, LLC (private equity investment) (January 1999-September 2004);
Trustee of Research Foundation of AIMR (2000-2002) (investment research,
non-profit); Governor, Jerome Levy Economics Institute of Bard College
(August 1990-September 2001) (economics research); Director of Ray &
Berendtson, Inc. (May 2000-April 2002) (executive search firm). Oversees 53
portfolios in the OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
AND OFFICER 11TH FLOOR, NEW YORK, NEW YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE
FOR AN INDEFINITE TERM, OR UNTIL HIS RESIGNATION, RETIREMENT, DEATH OR
REMOVAL AND AS AN OFFICER FOR AN INDEFINITE TERM, OR UNTIL HIS RESIGNATION,
RETIREMENT, DEATH OR REMOVAL. MR. MURPHY IS AN INTERESTED TRUSTEE DUE TO HIS
POSITIONS WITH OPPENHEIMERFUNDS, INC. AND ITS AFFILIATES.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and
Trustee, President and President (since September 2000) of the Manager; President and a director or
Principal Executive Officer trustee of other Oppenheimer funds; President and Director of Oppenheimer
(since 2001) Acquisition Corp. ("OAC") (the Manager's parent holding company) and of
Age: 57 Oppenheimer Partnership Holdings, Inc. (holding company subsidiary of the
Manager) (since July 2001); Director of OppenheimerFunds Distributor, Inc.
(subsidiary of the Manager) (since November 2001); Chairman and Director of
Shareholder Services, Inc. and of Shareholder Financial Services, Inc.
(transfer agent
60 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
JOHN V. MURPHY, subsidiaries of the Manager) (since July 2001); President and Director of
Continued OppenheimerFunds Legacy Program (charitable trust program established by the
Manager) (since July 2001); 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 Director (since
July 2001) of Oppenheimer Real Asset Management, Inc.; Executive Vice
President of Massachusetts Mutual Life Insurance Company (OAC's parent
company) (since February 1997); Director of DLB Acquisition Corporation
(holding company parent of Babson Capital Management LLC) (since June 1995);
Member of the Investment Company Institute's Board of Governors (since
October 3, 2003); Chief Operating Officer of the Manager (September
2000-June 2001); President and Trustee of MML Series Investment Fund and
MassMutual Select Funds (open-end investment companies) (November
1999-November 2001); Director of C.M. Life Insurance Company (September
1999-August 2000); President, Chief Executive Officer and Director of MML
Bay State Life Insurance Company (September 1999-August 2000); Director of
Emerald Isle Bancorp and Hibernia Savings Bank (wholly-owned subsidiary of
Emerald Isle Bancorp) (June 1989-June 1998). Oversees 91 portfolios in the
OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MR.
OF THE FUND ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK, NEW YORK
10281-1008, FOR MESSRS. VANDEHEY AND WIXTED, 6803 S. TUCSON WAY, CENTENNIAL,
COLORADO 80112-3924 AND FOR MESSRS. FIELDING, LOUGHRAN, COTTIER AND WILLIS,
350 LINDEN OAKS, ROCHESTER, NY 14625. EACH OFFICER SERVES FOR AN INDEFINITE
TERM OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, 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 14
Age: 57 portfolios in the OppenheimerFunds complex.
DANIEL G. LOUGHRAN, Vice President of the Manager since April 2001. An officer of 14 portfolios
Vice President and Portfolio in the OppenheimerFunds complex.
Manager (since 2005)
Age: 42
SCOTT S. COTTIER, Vice President of the Manager since 2002; portfolio manager and trader at
Vice President and Portfolio Victory Capital Management (1999-2002); an officer of 14 portfolios in the
Manager (since 2005) OppenheimerFunds complex.
Age: 34
TROY E. WILLIS, Assistant Vice President of the Manager since 2005; Associate Portfolio
Vice President and Portfolio Manager of the Manager since 2003; corporate attorney for Southern Resource
Manager (since 2005) Group (1999-2003). An officer of 14 portfolios in the OppenheimerFunds
Age: 33 complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since
Vice President and Chief March 2004); Vice President of OppenheimerFunds Distributor, Inc.,
Compliance Officer Centennial Asset Management Corporation and Shareholder Services, Inc.
(since 2004) (since June 1983). Former Vice President and Director of Internal Audit of
Age: 56 the Manager (1997-February 2004). An officer of 91 portfolios in the
OppenheimerFunds complex.
61 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999);
Treasurer and Principal Treasurer of the following: HarbourView Asset Management Corporation,
Financial and Accounting Shareholder Financial Services, Inc., Shareholder Services, Inc.,
Officer (since 1999) Oppenheimer Real Asset Management Corporation, and Oppenheimer Partnership
Age: 46 Holdings, Inc. (since March 1999), OFI Private Investments, Inc. (since
March 2000), OppenheimerFunds International Ltd. (since May 2000),
OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management,
Inc. (since November 2000), and OppenheimerFunds Legacy Program (charitable
trust program established by the Manager) (since June 2003); Treasurer and
Chief Financial Officer of OFI Trust Company (trust company subsidiary of
the Manager) (since May 2000); Assistant Treasurer of the following: OAC
(since March 1999), Centennial Asset Management Corporation (March
1999-October 2003) and OppenheimerFunds Legacy Program (April 2000-June
2003); Principal and Chief Operating Officer of Bankers Trust Company-Mutual
Fund Services Division (March 1995-March 1999). An officer of 91 portfolios
in the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since
Secretary (since 2001) March 2002) of the Manager; General Counsel and Director of the Distributor
Age: 58 (since December 2001); General Counsel of Centennial Asset Management
Corporation (since December 2001); Senior Vice President and General Counsel
of HarbourView Asset Management Corporation (since December 2001); Secretary
and General Counsel of OAC (since November 2001); Assistant Secretary (since
September 1997) and Director (since November 2001) of OppenheimerFunds
International Ltd. and OppenheimerFunds plc; Vice President and Director of
Oppenheimer Partnership Holdings, Inc. (since December 2002); Director of
Oppenheimer Real Asset Management, Inc. (since November 2001); Senior Vice
President, General Counsel and Director of Shareholder Financial Services,
Inc. and Shareholder Services, Inc. (since December 2001); Senior Vice
President, General Counsel and Director of OFI Private Investments, Inc. and
OFI Trust Company (since November 2001); Vice President of OppenheimerFunds
Legacy Program (since June 2003); Senior Vice President and General Counsel
of OFI Institutional Asset Management, Inc. (since November 2001); Director
of OppenheimerFunds (Asia) Limited (since December 2003); 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 the following: Shareholder Services,
Inc. (May 1985-November 2001), Shareholder Financial Services, Inc.
(November 1989-November 2001), and OppenheimerFunds International Ltd.
(September 1997-November 2001). An officer of 91 portfolios in the
OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS AND IS AVAILABLE WITHOUT CHARGE UPON
REQUEST, BY CALLING 1.800.525.7048.
62 | OPPENHEIMER NEW JERSEY 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 the registrant does
not have an audit committee financial expert serving on its Audit Committee. In
this regard, no member of the Audit Committee was identified as having all of
the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR
to qualify as an "audit committee financial expert," whether
through the type of specialized education or experience described in that
Instruction. The Board has concluded that while the members of the Audit
Committee collectively have the necessary attributes and experience required to
serve effectively as an Audit Committee, no single member possesses all of the
required technical attributes through the particular methods of education or
experience set forth in the Instructions to be designated as an audit committee
financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $67,500 in fiscal 2006 and $61,000 in fiscal 2005.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $87,615 in fiscal 2006 and $142,059 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: internal control reviews.
(c) Tax 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 no such fees in fiscal 2006 and $5,000 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: Preparation of form 5500
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $3,292 in fiscal 2006 and no such fees fiscal 2005.
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.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and
other services to be provided by the principal accountants of the
registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next regularly
scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid
by the registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee
of the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $90,907 in fiscal 2006 and $147,059 in
fiscal 2005 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)
No such services were rendered.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by executive
search firms which the Committee may engage from time to time and may also
consider shareholder recommendations. The Committee may consider the advice
and recommendation of the Funds' investment manager and its affiliates in
making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met by
a trustee nominee. In evaluating trustee nominees, the Committee considers,
among other things, an individual's background, skills, and experience;
whether the individual is an "interested person" as defined in the
Investment Company Act of 1940; and whether the individual would be deemed
an "audit committee financial expert" within the meaning of applicable SEC
rules. The Committee also considers whether the individual's background,
skills, and experience will complement the background, skills, and
experience of other nominees and will contribute to the Board. There are no
differences in the manner in which the Committee evaluates nominees for
trustees based on whether the nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates to
present to the Board and, in such cases where
required, to shareholders. Recommendations for trustee nominees should, at
a minimum, be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person" as
defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in a
proxy statement concerning the person if he or she was nominated; and
o the name and address of the person submitting the recommendation and, if
that person is a shareholder, the period for which that person held Fund
shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under the
Investment Company Act of 1940. In addition, certain other relationships
with Massachusetts Mutual Life Insurance Company or its subsidiaries, with
registered broker-dealers, or with the Funds' outside legal counsel may
cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving as
a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
The registrant's principal executive officer and principal financial officer
have concluded, based on their evaluation of the registrant's disclosure
controls and procedures (as defined in rule 30a-3(c) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(c)) as of February 8, 2007, which is a
date within 90 days of the filing date of this amended report on Form N-CSR/A,
that, as of said date, the design and operation of such controls and procedures
are effective to provide reasonable assurances that information required to be
disclosed by the registrant in the reports that it files under the Securities
Exchange Act of 1934 (i) 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 (ii) 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.
Subsequent to the issuance of the registrant's financial statements for its
fiscal year ended July 31, 2006 and to their evaluation of the registrant's
disclosure controls and procedures as of October 31, 2006 in connection with the
certifications in registrant's Form N-Q for the period ended October 31, 2006,
and prior to the evaluation of its internal controls in connection with the
certifications in this report, the registrant's management became aware that
other investment companies (not affiliated with the registrant) that invested in
certain municipal securities referred to as "inverse floaters" and that had
transferred certain municipal bonds to special purpose trusts for the purpose of
investing in such inverse floaters, accounting for such transfers as "sales" in
accordance with common practice in the mutual fund industry, had restated their
financial statements to apply the provisions of Statement of Financial
Accounting Standards No. 140, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities," ("FAS 140") to the
transfers of such municipal bonds in connection with their investments in
inverse floaters, in response to comments by their independent public
accountants about the sale accounting treatment that had previously been applied
by such investment companies to such transfers. As of and prior to July 31,
2006, the registrant's fiscal year end, the registrant had likewise accounted
for such transfers as "sales." Registrant's management notes that other
investment companies that invested in similar securities over the same time
periods had been accounting for such transfers in a similar manner as the
registrant. After a review of this treatment with the registrant's independent
public accountants, registrant applied FAS 140 to such transfers and restated
its financial statements for the fiscal year ended July 31, 2006.
Since October 31, 2006, and prior to the registrant's restatement of its
financial statements for the fiscal year ended July 31, 2006, and prior to the
evaluation by registrant's officers of the design and operation of the
registrant's disclosure controls and procedures as of February 8, 2007, the
operation of registrant's disclosure controls and procedures and its controls
and procedures over financial reporting was modified to enhance the review and
analysis of the relevant terms and conditions for transfers of securities in
connection with inverse floating rate obligations.
Management of the registrant is responsible for establishing and maintaining
effective internal control over financial reporting. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. The registrant's internal
control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with U.S. generally
accepted accounting principles. Such internal control includes policies and
procedures that provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of the registrant's
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, including changes in accounting
principles or the interpretations thereof, or that the degree of compliance with
the policies or procedures may deteriorate over time.
A control deficiency exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned
duties, to prevent or detect misstatements on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that
adversely affects the registrant's ability to initiate, authorize, record,
process or report financial data reliably in accordance with generally accepted
accounting principles such that there is more than a remote likelihood that a
misstatement of the registrant's annual or interim financial statements that is
more than inconsequential will not be prevented or detected. A material weakness
is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the
annual or interim financial statements will not be prevented or detected. The
registrant's independent public accountants have advised the registrant that its
policies and procedures related to the review and analysis of the relevant terms
and conditions of certain transfers of securities were not effective in
appropriately determining whether the transfers qualified for sale accounting
under the provisions of FAS 140. The control deficiency was described by the
independent auditors as a material weakness in internal control over financial
reporting as of July 31, 2006. However, it is registrant's management view that
at the time sale accounting treatment was applied to such transfers, registrant
believed that treatment was correct and in accordance with accounting practices
followed in the mutual fund industry with respect to such transfers, as reported
upon in such funds' audited financial statements. Registrant's management also
noted that the restatement of the registrant's financial statements did not
impact the net asset values of the registrant's shares or the registrant's total
returns for any period.
There have been no changes in the registrant's internal control over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this restated report that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting. However, as discussed above, subsequent to October 31,
2006, the registrant revised and enhanced controls over the application of
Statement of Financial Accounting Standards No. 140.
ITEM 12. EXHIBITS.
(a) (1) Exhibit attached hereto.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Multi-State Municipal Trust
By: /S/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 02/23/2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 02/23/2007
By: /S/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 02/23/2007