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SIGNATURE GEORGE C. BOWEN
TITLE TREASURER
Return of Capital
The Fund adjusts the classification of distributions to shareholders to reflect
the differences between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, during the year ended
September 30, 1998, amounts have been reclassified to reflect a decrease in
accumulated net investment loss of $11,574,857. Paid-in capital was decreased by
the same amount.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<PERIOD-END> SEP-30-1998
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<INVESTMENTS-AT-VALUE> 1,294,059,906
<RECEIVABLES> 9,519,097
<ASSETS-OTHER> 16,645
<OTHER-ITEMS-ASSETS> 212,584
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<PAYABLE-FOR-SECURITIES> 14,432,801
<SENIOR-LONG-TERM-DEBT> 0
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<NET-INVESTMENT-INCOME> (10,880,476)
<REALIZED-GAINS-CURRENT> 47,704,048
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<NAME> Oppenheimer Discovery Fund - C
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Independant Auditors' Report
The Board of Trustees and Shareholders of
Oppenheimer Discovery Fund:
In planning and performing our audit of the financial statements of Oppenheimer
Discovery Fund for the year ended September 30, 1998 we considered its internal
controls, including procedures for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of Form N-SAR, not
to provide assurance on the internal controls.
The management of Oppenheimer Discovery Fund is responsible for establishing and
maintaining internal controls. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of internal control policies and procedures. Two of the objectives of
internal controls are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or
disposition and that transactions are executed in accordance with management's
authorization and recorded properly to permit preparation of financial
statements in conformity with generally accepted accounting principles.
Because of inherent limitations in internal controls, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
controls to future periods is subject to the risk that they may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of internal controls would not necessarily disclose all
matters in internal controls that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of specific
internal control elements does not reduce to a relatively low level the risk
that errors or irregularities in amounts that would be material in relation to
the financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal controls, including
procedures for safeguarding securities, that we considered to be a material
weakness as defined above as of September 30, 1998.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission and should not be used for any other purpose.
KPMG Peat Marwick LLP
Denver, Colorado
October 21, 1998
