N-CSR 1 voyageurmutualfunds_ncsr.htm CERTIFIED SHAREHOLDER REPORT

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:		811-07742

Exact name of registrant as specified in charter:		Voyageur Mutual Funds

Address of principal executive offices:		2005 Market Street
		Philadelphia, PA 19103

Name and address of agent for service:		David F. Connor, Esq.
		2005 Market Street
		Philadelphia, PA 19103

Registrant’s telephone number, including area code:		(800) 523-1918

Date of fiscal year end:		August 31

Date of reporting period:		August 31, 2012

Item 1. Reports to Stockholders

Annual report

Delaware Tax-Free Minnesota Fund
Delaware Tax-Free Minnesota Intermediate Fund
Delaware Minnesota High-Yield Municipal Bond Fund

August 31, 2012

Fixed income mutual funds

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectuses and, if available, their summary prospectuses, which may be obtained by visiting delawareinvestments.com or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.

You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit delawareinvestments.com/edelivery.

Experience Delaware Investments

Delaware Investments is committed to the pursuit of consistently superior asset management and unparalleled client service. We believe in our investment processes, which seek to deliver consistent results, and in convenient services that help add value for our clients.

If you are interested in learning more about creating an investment plan, contact your financial advisor.

You can learn more about Delaware Investments or obtain a prospectus for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund at delawareinvestments.com.

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Delaware Management Holdings, Inc. and its subsidiaries (collectively known by the marketing name of Delaware Investments) are wholly owned subsidiaries of Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services.

Investments in Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

Table of contents
Portfolio management review		1
Performance summaries		5
Disclosure of Fund expenses		14
Security type/sector allocations		17
Statements of net assets		20
Statements of operations		50
Statements of changes in net assets		52
Financial highlights		58
Notes to financial statements		76
Report of independent registered
public accounting firm		90
Other Fund information		91
Board of trustees/directors and
officers addendum		98
About the organization		108

Unless otherwise noted, views expressed herein are current as of Aug. 31, 2012, and subject to change.

Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds’ distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

All third-party marks cited are the property of their respective owners.

Portfolio management review
Delaware Investments^®Minnesota Municipal Bond Funds	September 11, 2012

Performance preview (for the year ended August 31, 2012)
Delaware Tax-Free Minnesota Fund (Class A shares)	1-year return	+9.41%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78%
Lipper Minnesota Municipal Debt Funds Average	1-year return	+9.14%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Minnesota Fund, please see the table on page 5.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
The Lipper Minnesota Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Minnesota (double tax-exempt) or a city in Minnesota (triple tax-exempt).
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware Tax-Free Minnesota Intermediate Fund (Class A shares)	1-year return	+6.88%
Barclays 3–15 Year Blend Municipal Bond Index (benchmark)	1-year return	+6.84%
Lipper Other States Intermediate Municipal Debt Funds Average	1-year return	+5.72%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Minnesota Intermediate Fund, please see the table on page 8.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
The Lipper Other States Intermediate Municipal Debt Funds Average compares funds that invest in municipal debt issues with dollar-weighted average maturities of 5 to 10 years and are exempt from taxation on a specified city or state basis.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware Minnesota High-Yield Municipal Bond Fund (Class A shares)	1-year return	+9.86%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78%
Lipper Minnesota Municipal Debt Funds Average	1-year return	+9.14%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Minnesota High-Yield Municipal Bond Fund, please see the table on page 11.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
The Lipper Minnesota Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Minnesota (double tax-exempt) or a city in Minnesota (triple tax-exempt).
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Portfolio management review
Delaware Investments^® Minnesota Municipal Bond Funds

Economic backdrop

As the Funds’ fiscal year got under way in September 2011, signs were mounting that the U.S. economy was gradually improving. While this situation was interpreted positively for economically sensitive asset classes, it was also expected to lead to higher interest rates — a negative situation for most types of bonds. By the second half of the fiscal year, however, it became clear that the economy’s momentum was stalling:

U.S. gross domestic product (GDP) — a measure of the goods and services produced by the nation — grew at an annualized rate of just 2.0% in the first quarter of 2012, down from 4.1% in the previous three-month period. In the second quarter of 2012, the rate of GDP growth slowed further, to an estimated 1.7%.
Job creation remained persistently sluggish, as the unemployment rate fluctuated within a historically high range of 8.1% to 8.3% between January and August 2012.

(U.S. Commerce Department, U.S. Labor Department)

Outside the United States, elevated debt levels in several European countries — most notably Greece, Spain, and Italy — continued to foster the region’s economic volatility. European policy makers hoped to avoid the worst-case scenario of a breakup of the shared euro currency, which would likely result in a massive disruption to the global economy. As the Funds’ fiscal year progressed, it appeared that a tentative framework for resolution was in place, but financial markets remained highly sensitive to the uncertainty of a successful ending to this fiscal crisis.

Economic conditions within Minnesota

(Note: Data cited below are from sources that include: U.S. Labor Department, Minnesota Management & Budget, and Moody’s Investors Service.)

As the Funds’ fiscal year came to a close, the state of Minnesota exhibited a fundamentally sound economy that was reasonably diversified, with a mix of manufacturing, services, and trade industries. Nonfarm payrolls for July 2012 came in at 2.7 million, up 2.2% from July 2011 and higher than the national average of 1.4%.

While the state’s unemployment rate has historically lagged national unemployment, it has seen its unemployment rate increase in recent months; the jobless rate increased from 5.6% in June 2012 to 5.8% in July 2012.

Minnesota’s fiscal 2012 proved to be strong, with revenues surpassing estimates more than once throughout the year. According to estimates released in July, General Fund receipts for fiscal 2012 were up $336 million (2.1%) above earlier forecasts. The state projects a $1.05 billion budget gap for the upcoming 2014-2015 biennium, down from the previous forecast of $1.9 billion.

Municipal bond market conditions

The Funds’ fiscal year coincided with a beneficial environment for many municipal bond investors. Amid the sluggish U.S. economic backdrop and potential fallout

from the European debt situation, yields on U.S. Treasury debt stayed dramatically low. Investors therefore looked elsewhere for sources of competitive yield, and municipal bonds benefited from this attention.

Several factors fueled the demand side of the equation. First, there were heavy flows back into investors’ hands through bond redemptions. Second, new inflows into municipal bond mutual funds remained high, as did demand from institutional investors. Institutional investors don’t often purchase municipal securities and don’t traditionally drive the market, but in this case they likely saw certain municipal bonds offering unusually attractive values relative to comparable opportunities among taxable bonds.

Another factor underlying the demand for municipal securities was investors’ search for higher yield amid a low interest rate environment. Accordingly, bonds that exhibited higher yields, including those with longer maturities and lower credit ratings, generally outperformed their counterparts. In fact, the best-performing maturity range of the municipal bond market (as measured by the Barclays Municipal Bond Index) was 22 years and longer, which gained 14.52%, compared with an advance of just 0.89% for bonds with maturities of less than two years. Similarly, BBB-rated bonds were up 15.40% for the same time period, compared with a gain of just 6.07% for the AAA segment within that index.

Maintaining a consistent strategy

Across the Funds, we maintained a consistent management approach, emphasizing bottom-up security selection. We made investment decisions based on our research on individual bonds, instead of reacting to macroeconomic trends or trying to predict interest rate movements.

The Funds’ portfolios regularly emphasize A-rated and BBB-rated bonds and also maintain some allocation to bonds rated below investment grade. Simultaneously, they tend to underweight AAA-rated and AA-rated securities, as these higher-quality bonds generally offer fewer prospects to uncover hidden value.

Our comfort level with the Funds’ elevated weighting in relatively credit-sensitive securities stems from the thoroughness of our credit research process and our confidence in its ability to help identify tax-exempt securities that offer a positive risk-versus-reward tradeoff.

The Funds entered the fiscal year well positioned in our view, given the income being generated by certain holdings acquired in a higher interest rate environment during 2009 and 2010. We did not make major changes to the Funds’ portfolio holdings during the fiscal year. The majority of activity focused on investing new cash that came into the Funds. We invested opportunistically, taking advantage of individual securities that we believed fit into each portfolio’s respective structure.

Portfolio management review
Delaware Investments^® Minnesota Municipal Bond Funds

relatively short time period, we followed our rigorous research process in identifying what we believed to be meaningful additions to each Fund’s portfolio.

Notable sectors and securities

As we mentioned earlier, the best-performing bonds in the municipal marketplace were those with longer maturity dates and relatively lower credit ratings. By a similar token, the municipal bond market’s best-performing sectors were those composed predominantly of bonds with these characteristics.

The outperformance of lower-rated bonds proved favorable for our style of investing. Looking at the strongest individual contributors to each Fund’s results, we note that they are representative of the trend in which long-dated, lower-credit-quality issues enjoyed a performance advantage.

Within the Funds

Delaware Tax-Free Minnesota Fund benefited from owning a variety of bonds in the healthcare sector. Notable performers included nonrated senior housing bonds issued for the Marian Center, a St. Paul continuing care retirement community (CCRC), with a 2043 maturity date. Another strong performer was a healthcare bond for Guardian Angels Health Services, a CCRC in Sherburne County, maturing in 2036.

In contrast, relatively weaker performers included electric utility bonds for the Western Minnesota Municipal Power Agency as well as local general obligation debt issued by the Morris Independent School District, the latter of which were short-dated, high-quality bonds. Both of these securities turned in positive gains for the year, but they lagged the overall gains posted by longer-dated and lower-rated securities.

The strongest-performing securities within Delaware Tax Free Minnesota Intermediate Fund included Minnesota Tobacco Securitization Authority tobacco settlement revenue bonds with a 2031 maturity date and an A- rating from Standard & Poor’s (S&P). The Fund’s strong performers also included nonrated Rochester healthcare and housing bonds for Samaritan Bethany, a CCRC. These securities bore a 2029 maturity date.

On the other hand, the Fund’s position in Minnesota state general obligation bonds was among the relative laggards, given that these securities maintained S&P’s highest credit rating of AAA and were scheduled to mature in 2015. Other underperformers included Minnesota 911 revenue bonds (part of a public safety project), which advanced mildly during the fiscal year, as their 2014 maturity date and AA+ S&P rating rendered them somewhat out of favor.

Within Delaware Minnesota High-Yield Municipal Bond Fund, the strongest performers included bonds for the Marian Center CCRC in St. Paul, as well as bonds issued for Orleans Homes, a residential homebuilder with a maturity date of 2042. In contrast, underperformers included Minnesota state general obligation bonds maturing in 2016 and Southern Minnesota Municipal Power Agency bonds maturing in 2012; both issues failed to gain much ground during the Fund’s fiscal year, due in large part to their near-term maturity dates.

Performance summaries
Delaware Tax-Free Minnesota Fund	August 31, 2012

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our website at delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

Fund performance^1,2	Average annual total returns through August 31, 2012
	1 year	5 years	10 years
Class A (Est. Feb. 27, 1984)
Excluding sales charge	+9.41%	+5.84%	+5.11%
Including sales charge	+4.47%	+4.87%	+4.63%
Class B (Est. March 11, 1995)
Excluding sales charge	+8.59%	+5.05%	+4.47%
Including sales charge	+4.59%	+4.80%	+4.47%
Class C (Est. May 4, 1994)
Excluding sales charge	+8.58%	+5.06%	+4.32%
Including sales charge	+7.58%	+5.06%	+4.32%

¹Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 6. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual distribution and service fee of 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B shares. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Ten-year and lifetime performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.

Performance summaries
Delaware Tax-Free Minnesota Fund

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.65% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.92%	1.67%	1.67%
(without fee waivers)
Net expenses	0.90%	1.65%	1.65%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual

Performance of a $10,000 investment¹Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value	Ending value
	Barclays Municipal Bond Index	$10,000	$16,596
	Delaware Tax-Free Minnesota Fund — Class A shares	$9,550	$15,698

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 6. Please note additional details on pages 5 through 7.

The chart also assumes $10,000 invested in the Barclays Municipal Bond Index as of Aug. 31, 2002. The Barclays Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		DEFFX	928918101
Class B		DMOBX	928928696
Class C		DMOCX	928918408

Performance summaries
Delaware Tax-Free Minnesota Intermediate Fund

Fund performance^1,2	Average annual total returns through August 31, 2012
	1 year	5 years	10 years
Class A (Est. Oct. 27, 1985)
Excluding sales charge	+6.88%	+5.28%	+4.60%
Including sales charge	+3.98%	+4.70%	+4.31%
Class B (Est. Aug. 15, 1995)
Excluding sales charge	+5.96%	+4.41%	+4.15%
Including sales charge	+3.96%	+4.41%	+4.15%
Class C (Est. May 4, 1994)
Excluding sales charge	+5.96%	+4.41%	+3.73%
Including sales charge	+4.96%	+4.41%	+3.73%

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 9. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 2.75%, and have an annual distribution and service fee of 0.25% of average daily net assets. This fee has been contractually limited to 0.15% of average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B shares. Class B shares have a contingent deferred sales charge that declines from 2.00% to zero depending on the period of time the shares are held. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately five years after purchase. Ten-year and lifetime performance figures for Class B shares reflect conversion to Class A shares after approximately five years.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.69% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.95%	1.70%	1.70%
(without fee waivers)
Net expenses	0.84%	1.69%	1.69%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual

Performance summaries
Delaware Tax-Free Minnesota Intermediate Fund

Performance of a $10,000 investment¹
Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012 Starting value Ending value

Barclays 3–15 Year Blend Municipal Bond Index $10,000 $16,321

Delaware Tax-Free Minnesota
Intermediate Fund — Class A shares $9,725 $15,236

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 2.75% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 9. Please note additional details on pages 8 through 10.

The chart also assumes $10,000 invested in the Barclays 3–15 Year Blend Municipal Bond Index as of Aug. 31, 2002. The Barclays 3–15 Year Blend Municipal Bond Index measures the total return performance of investment grade, U.S. tax-exempt bonds with maturities from 2 to 17 years.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols	CUSIPs
Class A	DXCCX	928930106
Class B	DVSBX	928928399
Class C	DVSCX	928930205

Performance summaries
Delaware Minnesota High-Yield Municipal Bond Fund	August 31, 2012

Fund performance^1,2	Average annual total returns through August 31, 2012
	1 year	5 years	10 years
Class A (Est. June 4, 1996)
Excluding sales charge	+9.86%	+6.00%	+5.64%
Including sales charge	+4.95%	+5.03%	+5.15%
Class B (Est. June 12, 1996)
Excluding sales charge	+8.93%	+5.21%	+5.00%
Including sales charge	+4.93%	+4.96%	+5.00%
Class C (Est. June 7, 1996)
Excluding sales charge	+9.03%	+5.20%	+4.84%
Including sales charge	+8.03%	+5.20%	+4.84%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 12. Performance would have been lower had expense limitations not been in effect.

Performance summaries
Delaware Minnesota High-Yield Municipal Bond Fund

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds. The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for the Fund to obtain precise valuations of the high yield securities in its portfolio.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.64% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.98%	1.73%	1.73
(without fee waivers)
Net expenses	0.89%	1.64%	1.64
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual

Performance of a $10,000 investment¹
Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value		Ending value
	Barclays Municipal Bond Index		$10,000	$16,596
	Delaware Minnesota High-Yield Municipal Bond Fund — Class A shares		$9,550	$16,515

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 12. Please note additional details on pages 11 through 13.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols	CUSIPs
Class A	DVMHX	928928316
Class B	DVMYX	928928290
Class C	DVMMX	928928282

Disclosure of Fund expenses
For the six-month period from March 1, 2012 to August 31, 2012 (Unaudited)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. These following examples are intended to help you understand your ongoing costs (in dollars) of investing in a 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 invested at the beginning of the period and held for the entire six-month period from March 1, 2012 to August 31, 2012.

Actual expenses

The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section 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 second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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 a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is 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. The Funds’ expenses shown in the tables reflect fee waivers in effect. The expenses shown in each table assume reinvestment of all dividends and distributions.

Delaware Tax-Free Minnesota Fund
Expense analysis of an investment of $1,000

	Beginning		Ending			Expenses
	Account Value		Account Value		Annualized	Paid During Period
	3/1/12		8/31/12		Expense Ratio	3/1/12 to 8/31/12*
Actual Fund return
Class A		$1,000.00		$1,029.20	0.90%		$4.59
Class B		1,000.00		1,025.30	1.65%		8.40
Class C		1,000.00		1,025.30	1.65%		8.40
Hypothetical 5% return (5% return before expenses)
Class A		$1,000.00		$1,020.61	0.90%		$4.57
Class B		1,000.00		1,016.84	1.65%		8.36
Class C		1,000.00		1,016.84	1.65%		8.36

Delaware Tax-Free Minnesota Intermediate Fund
Expense analysis of an investment of $1,000

	Beginning		Ending			Expenses
	Account Value		Account Value		Annualized	Paid During Period
	3/1/12		8/31/12		Expense Ratio	3/1/12 to 8/31/12*
Actual Fund return
Class A		$1,000.00		$1,019.70	0.84%		$4.26
Class B		1,000.00		1,016.30	1.69%		8.57
Class C		1,000.00		1,016.30	1.69%		8.57
Hypothetical 5% return (5% return before expenses)
Class A		$1,000.00		$1,020.91	0.84%		$4.27
Class B		1,000.00		1,016.64	1.69%		8.57
Class C		1,000.00		1,016.64	1.69%		8.57

Disclosure of Fund expenses

Delaware Minnesota High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	3/1/12		8/31/12		Expense Ratio		3/1/12 to 8/31/12*
Actual Fund return
Class A		$1,000.00		$1,035.90		0.89%		$4.55
Class B		1,000.00		1,032.00		1.64%		8.38
Class C		1,000.00		1,032.00		1.64%		8.38
Hypothetical 5% return (5% return before expenses)
Class A		$1,000.00		$1,020.66		0.89%		$4.52
Class B		1,000.00		1,016.89		1.64%		8.31
Class C		1,000.00		1,016.89		1.64%		8.31

*“Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

Security type/sector allocations
Delaware Tax-Free Minnesota Fund	As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	99.76	%
Corporate-Backed Revenue Bonds	7.28	%
Education Revenue Bonds	8.06	%
Electric Revenue Bonds	4.74	%
Healthcare Revenue Bonds	34.94	%
Housing Revenue Bonds	6.27	%
Lease Revenue Bonds	3.15	%
Local General Obligation Bonds	11.11	%
Pre-Refunded/Escrowed to Maturity Bonds	11.86	%
Special Tax Revenue Bonds	3.75	%
State General Obligation Bonds	5.91	%
Transportation Revenue Bonds	1.60	%
Water & Sewer Revenue Bonds	1.09	%
Short-Term Investments	0.32	%
Total Value of Securities	100.08	%
Liabilities Net of Receivables and Other Assets	(0.08	%)
Total Net Assets	100.00	%

Security type/sector allocations
Delaware Tax-Free Minnesota Intermediate Fund	As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	100.12	%
Corporate-Backed Revenue Bonds	6.72	%
Education Revenue Bonds	13.37	%
Electric Revenue Bonds	8.91	%
Healthcare Revenue Bonds	28.70	%
Housing Revenue Bonds	1.51	%
Lease Revenue Bonds	2.95	%
Local General Obligation Bonds	18.58	%
Pre-Refunded/Escrowed to Maturity Bonds	3.93	%
Special Tax Revenue Bonds	4.08	%
State General Obligation Bonds	5.20	%
Transportation Revenue Bonds	3.70	%
Water & Sewer Revenue Bonds	2.47	%
Total Value of Securities	100.12	%
Liabilities Net of Receivables and Other Assets	(0.12	%)
Total Net Assets	100.00	%

Delaware Minnesota High-Yield Municipal Bond Fund

As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	99.47	%
Corporate-Backed Revenue Bonds	6.78	%
Education Revenue Bonds	10.00	%
Electric Revenue Bonds	6.48	%
Healthcare Revenue Bonds	38.40	%
Housing Revenue Bonds	9.54	%
Lease Revenue Bonds	2.56	%
Local General Obligation Bonds	10.32	%
Pre-Refunded Bonds	3.16	%
Special Tax Revenue Bonds	8.26	%
State General Obligation Bonds	2.08	%
Transportation Revenue Bonds	1.48	%
Water & Sewer Revenue Bonds	0.41	%
Short-Term Investments	0.89	%
Total Value of Securities	100.36	%
Liabilities Net of Receivables and Other Assets	(0.36	%)
Total Net Assets	100.00	%

Statements of net assets
Delaware Tax-Free Minnesota Fund	August 31, 2012

		Principal amount		Value
Municipal Bonds – 99.76%
Corporate-Backed Revenue Bonds – 7.28%
	Cloquet Pollution Control Revenue Refunding
	(Potlatch Project) 5.90% 10/1/26	$	7,000,000	$	7,019,460
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21		8,000,000		8,385,280
	Minnesota Tobacco Securitization Authority
	(Tobacco Settlement Revenue) Refunding
	Series B 5.25% 3/1/31		19,775,000		22,355,242
	Sartell Environmental Improvement Revenue Refunding
	(International Paper) Series A 5.20% 6/1/27		7,265,000		7,400,274
					45,160,256
Education Revenue Bonds – 8.06%
	Duluth Housing & Redevelopment Authority Lease Revenue
	(Public Schools Academy)
	Series A 5.875% 11/1/40		3,500,000		3,622,325
	Minnesota Colleges & Universities Revenue Fund Series A
	5.00% 10/1/28		8,900,000		10,177,950
	5.00% 10/1/29 (NATL-RE)		5,665,000		6,232,236
	Refunding 5.00% 10/1/20		1,060,000		1,313,372
	Refunding 5.00% 10/1/21		1,340,000		1,680,963
	Minnesota Higher Education Facilities Authority Revenue
	(Augsburg College)
	Series 6-C 5.00% 5/1/20		1,250,000		1,291,013
	Series 6-J1 5.00% 5/1/36		2,225,000		2,264,561
	(Bethel University) Series 6-R 5.50% 5/1/37		2,500,000		2,612,575
	(Carleton College)
	Series 6-T 5.00% 1/1/28		1,000,000		1,127,000
	Series 7-D
	5.00% 3/1/30		1,500,000		1,716,435
	5.00% 3/1/40		3,000,000		3,328,560
	(St. Catherine University) Series 7-Q
	5.00% 10/1/21		1,300,000		1,519,206
	5.00% 10/1/23		350,000		406,543
	5.00% 10/1/24		475,000		548,402
	5.00% 10/1/27		200,000		227,852
	(St. Olaf College) Series 7-F 4.50% 10/1/30		2,000,000		2,185,440
	(University of St. Thomas)
	Series 6-X 5.25% 4/1/39		5,000,000		5,452,550
	Series 7-A 5.00% 10/1/39		2,000,000		2,236,580
	State Scholastic College) Series 7-J 6.30% 12/1/40		1,800,000		2,064,888
					50,008,451

		Principal amount		Value
Municipal Bonds (continued)
Electric Revenue Bonds – 4.74%
	Central Minnesota Municipal Power Agency
	(Brookings Twin Cities Transmission Project)
	Series E 5.00% 1/1/42	$	1,500,000	$	1,678,395
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.00% 10/1/30		3,000,000		3,183,090
	Hutchinson Public Utilities Commission Revenue Series A
	4.00% 12/1/21		700,000		793,387
	5.00% 12/1/19		520,000		629,699
	Minnesota Municipal Power Agency Electric Revenue
	5.00% 10/1/35		3,000,000		3,172,200
	Series A
	5.00% 10/1/34		6,250,000		6,698,563
	5.125% 10/1/29		3,000,000		3,221,700
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.50% 7/1/38		2,000,000		2,139,020
^	Southern Minnesota Municipal Power Agency Supply
	System Revenue Capital Appreciation
	Series A 6.70% 1/1/25 (NATL-RE)		5,000,000		3,309,050
	Western Minnesota Municipal Power Agency Refunding
	Series A 5.00% 1/1/27		3,750,000		4,589,400
					29,414,504
Healthcare Revenue Bonds – 34.94%
	Aitkin Health Care Facilities Revenue Refunding
	(Riverwood Healthcare Center) 5.60% 2/1/32		2,100,000		2,159,850
	Alexandria Senior Housing Revenue
	(Knute Nelson Senior Living)
	6.00% 7/1/35		1,500,000		1,617,225
	6.20% 7/1/45		2,000,000		2,150,020
	Anoka Health Care Facilities Revenue
	(Homestead Anoka Project) Series A
	7.00% 11/1/40		1,000,000		1,076,750
	7.00% 11/1/46		1,220,000		1,302,033
	Anoka Housing Facilities Revenue
	(Senior Homestead Anoka Project)
	Series B 6.875% 11/1/34		2,015,000		2,180,290
	Apple Valley Economic Development Authority Health
	Care Revenue (Augustana Home St. Paul Project)
	Series A 6.00% 1/1/40		2,700,000		2,782,566

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Breckenridge Catholic Health Initiatives
	Series A 5.00% 5/1/30	$	2,500,000	$	2,637,275
	Fergus Falls Health Care Facilities Revenue
	(Lake Region Health Care)
	5.15% 8/1/35		1,250,000		1,309,850
	5.40% 8/1/40		1,000,000		1,047,120
	Glencoe Health Care Facilities Revenue
	(Glencoe Regional Health Services Project)
	5.00% 4/1/31		1,000,000		1,014,080
	Maple Grove Health Care System Revenue
	(Maple Grove Hospital) 5.25% 5/1/37		2,950,000		3,088,119
	Minneapolis Health Care System Revenue
	(Fairview Health Services)
	Series A 6.625%11/15/28		3,000,000		3,595,440
	Series B 6.50% 11/15/38 (ASSURED GTY)		1,140,000		1,363,258
	Series D
	5.00% 11/15/30 (AMBAC)		2,500,000		2,592,275
	5.00% 11/15/34 (AMBAC)		4,750,000		4,915,158
	(Jones-Harrison Residence Project) 5.60% 10/1/30		1,050,000		1,060,080
	Minneapolis National Marrow Donor Program Revenue
	4.875% 8/1/25		6,430,000		6,653,700
	Minneapolis - St. Paul Housing & Redevelopment
	Authority Health Care Revenue
	(Children’s Hospital) Series A
	5.00% 8/15/30		2,750,000		2,888,105
	5.25% 8/15/35		2,085,000		2,382,300
	(Health Partners Obligation Group Project)
	5.875% 12/1/29		1,000,000		1,028,920
	Minnesota Agricultural & Economic
	Development Board Revenue
	(Benedictine Health Systems) 5.75% 2/1/29		1,895,000		1,895,834
	(Essentia Remarketing) Series C-1
	5.00% 2/15/30 (ASSURED GTY)		5,725,000		6,345,533
	5.25% 2/15/23 (ASSURED GTY)		5,000,000		5,887,500
	5.50% 2/15/25 (ASSURED GTY)		5,120,000		6,048,461
	(Fairview Health Care System)
	Un-refunded Balance Series A
	5.75% 11/15/26 (NATL-RE)		180,000		180,311
	6.375% 11/15/29		15,000		15,031

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Northfield Hospital & Skilled Nursing Revenue
	5.375% 11/1/26	$	3,785,000	$	3,973,077
	Rochester Health Care & Housing Revenue Refunding
	(Samaritan Bethany)
	Series A 7.375% 12/1/41		5,220,000		5,893,902
	Rochester Health Care Facilities Revenue
	(Mayo Clinic) 4.00% 11/15/41		9,750,000		10,209,225
	(Mayo Clinic) Remarketing Series D 5.00% 11/15/38		6,405,000		7,427,750
	(Olmsted Medical Center) 5.875% 7/1/30		1,850,000		2,029,672
	Sartell Health Care Facilities Revenue
	(Country Manor Campus Project) Series A
	5.25% 9/1/27		1,280,000		1,320,192
	6.375% 9/1/42		2,435,000		2,598,389
	Shakopee Health Care Facilities Revenue
	(St. Francis Regional Medical Center)
	5.10% 9/1/25		2,000,000		2,047,380
	5.25% 9/1/34		7,000,000		7,144,340
	Sherburne County Health Care Facilities Revenue
	(Guardian Angels Health Services)
	5.55% 10/1/36		1,500,000		1,529,880
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	5.375% 5/1/31 (ASSURED GTY)		1,000,000		1,121,630
	5.50% 5/1/39 (ASSURED GTY)		6,000,000		6,667,020
	Series A
	5.00% 5/1/25		1,035,000		1,080,302
	5.125% 5/1/30		10,350,000		11,431,574
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series C
	5.50% 7/1/23		3,000,000		3,362,670
	5.625% 7/1/26		1,925,000		2,148,185
	5.75% 7/1/30		5,000,000		5,606,900
	Refunding 5.75% 7/1/39		16,975,000		19,085,501
	St. Paul Housing & Redevelopment Authority
	Health Care Facilities Revenue
	(Health Partners Obligation Group Project)
	5.25% 5/15/36		7,900,000		8,223,979
	(Senior Carondelet Village Project)
	Series A 6.00% 8/1/42		3,075,000		3,264,451

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Paul Housing & Redevelopment Authority Health Care
	Revenue (Allina Health System)
	Series A 5.00% 11/15/18 (NATL-RE)	$	5,720,000	$	6,693,773
	Series A-1 5.25% 11/15/29		5,605,000		6,260,561
	St. Paul Housing & Redevelopment Authority Hospital
	Revenue (Health East Project)
	6.00% 11/15/30		4,000,000		4,227,080
	6.00% 11/15/35		10,340,000		10,863,513
	St. Paul Housing & Redevelopment Authority Multifamily
	Housing Revenue Refunding
	(Marian Center Project) Series A
	5.30% 11/1/30		500,000		495,820
	5.375% 5/1/43		500,000		486,560
	Stillwater Health Care Revenue
	(Health System Obligation Group) 5.00% 6/1/35		1,000,000		1,026,920
	Washington County Housing & Redevelopment
	Authority Healthcare & Housing Revenue
	(Birchwood & Woodbury Projects)
	Series A 5.625% 6/1/37		1,500,000		1,527,975
	Washington County Housing & Redevelopment Authority
	Hospital Facilities Revenue
	(Health East Project) 5.50% 11/15/27		1,000,000		1,001,030
	Wayzata Senior Housing Revenue
	(Folkestone Senior Living Community) Series A
	5.50% 11/1/32		1,050,000		1,083,495
	5.75% 11/1/39		2,365,000		2,466,364
	6.00% 5/1/47		3,685,000		3,880,379
	Winona Health Care Facilities Revenue Refunding
	(Winona Health Obligation)
	4.50% 7/1/25		850,000		887,111
	4.65% 7/1/26		540,000		562,977
					216,846,661
Housing Revenue Bonds – 6.27%
	Minneapolis Multifamily Housing Revenue
	(Bottineau Commons Project)
	5.45% 4/20/43 (GNMA) (AMT)		1,500,000		1,502,445
	(Grant Street Apartments Project) Refunding
	Series A 7.25% 11/1/29		730,000		731,044

		Principal amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
	Minneapolis Multifamily Housing Revenue (continued)
	(Seward Towers Project) 5.00% 5/20/36 (GNMA)	$	8,000,000	$	8,233,200
	(Sumner Field) Series A 5.50% 11/20/26 (GNMA) (AMT)		815,000		818,333
	(Trinity Apartments) Refunding
	Series A 6.75% 5/1/21 (HUD)		1,320,000		1,321,808
	Minnesota Housing Finance Agency
	(Residential Housing)
	•Series D 4.80% 7/1/38 (AMT)		2,295,000		2,347,647
	Series I 4.85% 7/1/38 (AMT)		1,790,000		1,834,213
	Series I 5.15% 7/1/38 (AMT)		4,780,000		4,926,364
	Series L 5.10% 7/1/38 (AMT)		8,970,000		9,302,518
	Series M 4.875% 7/1/37 (AMT)		4,425,000		4,527,129
	Minnesota Housing Finance Agency
	Homeownership Finance
	(Non-Agency Mortgage-Backed Securities Program)
	Series D 4.70% 1/1/31 (GNMA) (FNMA) (FHLMC)		2,455,000		2,732,317
	Willmar Housing & Redevelopment Authority
	Multifamily Housing Revenue (Highland Apartments)
	5.85% 6/1/19 (HUD)		600,000		600,708
					38,877,726
Lease Revenue Bonds – 3.15%
	St. Paul Port Authority Lease Revenue
	(Cedar Street Office Building Project)
	5.00% 12/1/22		2,500,000		2,527,975
	5.25% 12/1/27		3,840,000		3,864,998
	Series 3-12 5.125% 12/1/27		3,000,000		3,144,630
	(Robert Street Office Building Project)
	Series 3-11 4.75% 12/1/23		2,000,000		2,099,300
	Series 3-11 5.00% 12/1/27		2,500,000		2,607,325
	Series 9 5.25% 12/1/27		725,000		729,720
	University of Minnesota Special Purpose Revenue
	(State Supported Biomed Science
	Research Facilities Funding Program)
	Series A 5.00% 8/1/35		3,960,000		4,558,000
					19,531,948

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds – 11.11%
	Anoka County Capital Improvement
	Series A 5.00% 2/1/22	$	500,000	$	594,840
	Brainerd Independent School District #181 Refunding
	(School Building) Series A
	4.00% 2/1/22		2,255,000		2,507,921
	4.00% 2/1/23		5,990,000		6,612,601
	Farmington Independent School District #192
	(School Building) Series B 5.00% 2/1/27 (AGM)		10,705,000		11,642,864
	Lakeville Independent School District #194
	(School Building) Refunding
	Series A 4.75% 2/1/22 (AGM)		6,850,000		6,957,682
^	Mahtomedi Independent School District #832 Capital
	Appreciation Series B 5.85% 2/1/14 (NATL-RE)		1,540,000		1,529,143
	Metropolitan Council Waste Water Treatment
	Series B 5.00% 12/1/21		1,200,000		1,306,284
	Series C 5.00% 3/1/28		5,000,000		5,577,650
	Minneapolis Library 5.00% 12/1/25		1,500,000		1,516,605
	Morris Independent School District #769
	(School Building) 5.00% 2/1/24 (NATL-RE)		4,875,000		4,960,605
	New Brighton Tax Increment
	Series A 5.00% 2/1/27 (NATL-RE)		1,000,000		1,149,580
	Prior Lake-Savage Independent School District #719
	(School Building) Series B 5.00% 2/1/19 (AGM)		3,145,000		3,453,493
	Ramsey County State Aid Series C 5.00% 2/1/28		1,060,000		1,077,925
^	Sartell-St. Stephen Independent School District #748
	Capital Appreciation Refunding Series B
	6.05% 2/1/15 (NATL-RE)		1,075,000		1,043,406
	6.10% 2/1/16 (NATL-RE)		1,750,000		1,669,675
	South Washington County Independent School District #833
	(School Building) Series A
	4.75% 2/1/25		2,500,000		2,806,425
	4.75% 2/1/26		3,600,000		4,026,096
	4.75% 2/1/27		2,300,000		2,563,557
	Staples United Hospital District (Todd Morrison ETC
	Hospital Health Care Facilities-Lakewood)
	5.00% 12/1/21		2,000,000		2,122,980
	5.125% 12/1/24		1,000,000		1,055,810

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Thief River Falls Independent School District #564
	(School Building) 4.00% 2/1/30	$	800,000	$	891,232
	Willmar City (Rice Memorial Hospital Project)
	Refunding Series A
	5.00% 2/1/25		2,210,000		2,662,696
	5.00% 2/1/27		1,000,000		1,192,360
					68,921,430
§Pre-Refunded / Escrowed to Maturity Bonds – 11.86%
	Dakota-Washington Counties Housing & Redevelopment
	Authority Single Family Residential Mortgage Revenue
	8.15% 9/1/16 (NATL-RE) (IBC) (GNMA) (AMT)		405,000		511,835
	(Anoka County) 8.45% 9/1/19 (GNMA) (AMT)		9,000,000		12,730,320
	(Bloomington Mortgage) Refunding
	Series B 8.375% 9/1/21 (GNMA) (FHA) (VA) (AMT)		14,115,000		20,820,189
	Minneapolis - St. Paul Metropolitan Airports Commission
	Revenue Subordinate Series A 5.00%
	1/1/22-13 (NATL-RE)		2,000,000		2,032,200
	Minnesota Colleges & Universities Revenue Fund
	Series A 5.00% 10/1/22-12 (AGM)		5,135,000		5,155,694
	Southern Minnesota Municipal Power Agency Power
	Supply Revenue Refunding
	5.75% 1/1/18-13 (AMBAC) (TCRS)		670,000		719,319
	5.75% 1/1/18-13 (NATL-RE) (IBC)		1,000,000		1,073,610
	Series A 5.75% 1/1/18-13		3,790,000		4,068,982
	Series B 5.50% 1/1/15 (AMBAC)		270,000		271,995
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B
	5.25% 7/1/30-14		7,000,000		7,622,860
	University of Minnesota Series A 5.50% 7/1/21		12,500,000		15,665,875
	Western Minnesota Municipal Power Agency Supply
	Revenue Series A 9.75% 1/1/16 (NATL-RE)		715,000		893,500
	Willmar (Rice Memorial Hospital Project)
	5.00% 2/1/22-13 (AGM)		1,000,000		1,020,130
	5.00% 2/1/25-13 (AGM)		1,000,000		1,020,130
					73,606,639

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 3.75%
	Hennepin County Sales Tax Revenue
	(Second Lien - Ballpark Project) Series B
	5.00% 12/15/19	$	2,100,000	$	2,477,958
	5.00% 12/15/20		1,000,000		1,179,980
	5.00% 12/15/24		1,150,000		1,336,220
	Minneapolis Development Revenue
	(Limited-Tax Supported Common Bond Fund)
	Series 2A 6.00% 12/1/40		3,000,000		3,492,330
	Minneapolis Tax Increment Revenue Refunding
	(St. Anthony Falls Project) 5.75% 2/1/27		1,000,000		1,005,880
	Minnesota 911 Revenue
	(Public Safety Radio Commission System Project)
	5.00% 6/1/24		2,925,000		3,441,643
	5.00% 6/1/25		2,000,000		2,340,260
	Puerto Rico Sales Tax Financing Corporation Sales Tax
	Revenue First Subordinated Series A
	5.50% 8/1/42		2,500,000		2,702,700
	5.75% 8/1/37		4,760,000		5,315,158
					23,292,129
State General Obligation Bonds – 5.91%
	Minnesota State
	Series A
	5.00% 10/1/24		8,750,000		10,926,037
	5.00% 10/1/27		5,280,000		6,495,034
	(State Trunk Highway) Series B 5.00% 10/1/29		5,000,000		6,098,550
	(Various Purposes) Series A 4.00% 8/1/27		3,250,000		3,681,568
	Puerto Rico Commonwealth Public Improvement Refunding
	Series C 6.00% 7/1/39		2,800,000		3,067,792
	Series D 5.75% 7/1/41		6,000,000		6,417,180
					36,686,161
Transportation Revenue Bonds – 1.60%
	Minneapolis - St. Paul Metropolitan Airports Commission
	Revenue Series A 5.00% 1/1/28		1,250,000		1,428,900
	St. Paul Housing & Redevelopment Authority Parking
	Revenue Refunding (Parking Facilities Project) Series A
	5.00% 8/1/30		1,870,000		2,084,844
	5.00% 8/1/35		1,145,000		1,214,696
	(Smith Avenue Project) Series B 5.00% 8/1/35		1,500,000		1,648,350

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	St. Paul Port Authority Revenue Refunding
	(Amherst H Wilder Foundation) Series 3
	5.00% 12/1/36	$	3,200,000	$	3,556,960
					9,933,750
Water & Sewer Revenue Bonds – 1.09%
	Metropolitan Council Waste Water Revenue Series B
	4.00% 9/1/27		2,400,000		2,682,552
	5.00% 9/1/25		3,245,000		4,108,235
					6,790,787
Total Municipal Bonds (cost $567,355,032)					619,070,442

Short-Term Investments – 0.32%
¤Variable Rate Demand Notes – 0.32%
	Brooklyn Center Revenue Refunding
	(Brookdale Corporation II Project)
	0.21% 12/1/14 (LOC-US Bank N.A.)		100,000		100,000
	Center City Health Care Facilities Revenue
	(Hazelden Foundation Project)
	0.21% 11/1/35 (LOC-US Bank N.A.)		400,000		400,000
	Minneapolis & St. Paul Housing & Redevelopment
	Authority (Allina Health System)
	Series B-1 0.18% 11/15/35
	(LOC–JPMorgan Chase Bank N.A.)		500,000		500,000
	St. Paul Housing & Redevelopment Authority Revenue
	(Minnesota Public Radio Project)
	0.20% 5/1/22 (LOC–JPMorgan Chase Bank N.A.)		700,000		700,000
	St. Paul Port Authority Revenue
	(Minnesota Public Radio Project)
	Series 7 0.20% 5/1/25
	(LOC–JPMorgan Chase Bank N.A.)		265,000		265,000
Total Short-Term Investments (cost $1,965,000)					1,965,000

Statements of net assets
Delaware Tax-Free Minnesota Fund


Total Value of Securities – 100.08%
(cost $569,320,032)	$	621,035,442
Liabilities Net of Receivables and
Other Assets – (0.08%)		(491,558		)
Net Assets Applicable to 47,626,266
Shares Outstanding – 100.00%	$	620,543,884

Net Asset Value – Delaware Tax-Free Minnesota Fund
Class A ($577,061,150 / 44,298,485 Shares)			$13.03
Net Asset Value – Delaware Tax-Free Minnesota Fund
Class B ($2,114,438 / 162,192 Shares)			$13.04
Net Asset Value – Delaware Tax-Free Minnesota Fund
Class C ($41,368,296 / 3,165,589 Shares)			$13.07

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	565,231,623
Distributions in excess of net investment income		(150,996		)
Accumulated net realized gain on investments		3,747,847
Net unrealized appreciation of investments		51,715,410
Total net assets	$	620,543,884

^	Zero coupon security. The rate shown is the yield at the time of purchase.
•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to financial statements.”
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.


Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Minnesota Fund
Net asset value Class A (A)	$	13.03
Sales charge (4.50% of offering price) (B)		0.61
Offering price	$	13.64

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
FHA — Federal Housing Administration
FHLMC — Federal Home Loan Mortgage Corporation Collateral
FNMA — Federal National Mortgage Association Collateral
GNMA — Government National Mortgage Association Collateral
HUD — Housing and Urban Development Section 8
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
TCRS — Temporary Custodial Receipts
VA — Veterans Administration Collateral

See accompanying notes, which are an integral part of the financial statements.

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

August 31, 2012

		Principal amount		Value
Municipal Bonds – 100.12%
Corporate-Backed Revenue Bonds – 6.72%
	Cloquet Pollution Control Revenue Refunding
	(Potlatch Project) 5.90% 10/1/26	$	1,695,000	$	1,699,712
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21		750,000		786,120
	Minneapolis Community Planning & Economic
	Development Agency (Limited Tax Common Bond Fund)
	Series 4 6.20% 6/1/17 (AMT)		610,000		615,527
	Minnesota Tobacco Securitization Authority
	(Tobacco Settlement Revenue) Refunding
	Series B 5.25% 3/1/31		4,000,000		4,521,920
					7,623,279
Education Revenue Bonds – 13.37%
	Minnesota Colleges & Universities Revenue Fund Series A
	4.00% 10/1/18		1,000,000		1,164,420
	5.00% 10/1/28		1,000,000		1,143,590
	Refunding 4.00% 10/1/18		1,190,000		1,385,660
	Minnesota Higher Education Facilities Authority Revenue
	(Carleton College) Series 6-T 4.75% 1/1/23		1,000,000		1,134,370
	(Hamline University) Series 7-E 5.00% 10/1/29		250,000		273,525
	(Macalester College) Series 6-P 4.25% 3/1/27		750,000		803,648
	(St. Catherine University) Series 7-Q 5.00% 10/1/22		425,000		497,590
	(St. Johns University) Series 6-U
	4.40% 10/1/21		325,000		367,673
	4.50% 10/1/23		265,000		296,686
	(State Scholastic College) Series H 5.125% 12/1/30		1,000,000		1,092,160
	(University of St. Thomas)
	Series 5-Y 5.25% 10/1/19		1,590,000		1,706,626
	Series 6-X 5.00% 4/1/24		1,000,000		1,110,120
	University of Minnesota Series A
	5.00% 12/1/23		1,000,000		1,229,730
	5.00% 12/1/26		1,000,000		1,237,500
	University of Minnesota Special Purpose Revenue
	(State Supported Stadium Debt)
	5.00% 8/1/18		1,500,000		1,716,749
					15,160,047

		Principal amount		Value
Municipal Bonds (continued)
Electric Revenue Bonds – 8.91%
	Central Minnesota Municipal Power Agency
	(Brookings Twin Cities Transmission Project) Series E
	5.00% 1/1/21	$	1,095,000	$	1,305,645
	5.00% 1/1/23		1,000,000		1,194,520
	5.00% 1/1/24		500,000		591,810
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.25% 10/1/25		1,000,000		1,079,090
	Hutchinson Public Utility Commission Revenue Series A
	5.00% 12/1/19		500,000		605,480
	Minnesota Municipal Power Agency Electric Revenue
	5.25% 10/1/21		1,000,000		1,094,750
	Northern Municipal Power Agency Electric
	System Revenue
	5.00% 1/1/17 (ASSURED GTY)		1,000,000		1,168,970
	Series A 5.00% 1/1/15 (ASSURED GTY)		1,000,000		1,099,950
	Series A 5.00% 1/1/16 (ASSURED GTY)		700,000		797,125
	Southern Minnesota Municipal Power Agency
	System Revenue Series A
	5.25% 1/1/16 (AMBAC)		500,000		574,555
	Western Minnesota Municipal Power Agency Refunding
	Series A 4.00% 1/1/29		540,000		591,430
					10,103,325
Healthcare Revenue Bonds – 28.70%
	Anoka Housing Facilities Revenue
	(Senior Homestead Anoka Project)
	Series B 6.875% 11/1/34		750,000		811,523
	Fergus Falls Health Care Facilities Revenue
	(Lake Region Health Care) 4.75% 8/1/25		500,000		522,360
	Minneapolis Health Care System Revenue
	(Fairview Health Services)
	Series A 6.625% 11/15/28		1,500,000		1,797,720
	Series B 6.50% 11/15/38 (ASSURED GTY)		1,000,000		1,195,840
	Minneapolis National Marrow Donor Program Revenue
	5.00% 8/1/17		1,205,000		1,334,586

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

			Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Minneapolis-St. Paul Housing & Redevelopment
		Authority Health Care Revenue
		(Children’s Hospital) Series A 5.25% 8/15/25	$	1,000,000	$	1,166,180
		(Health Partners Obligation Group Project)
		6.00% 12/1/17		850,000		890,860
	Minnesota Agricultural & Economic Development Board
		Health Care Revenue (Essentia Remarketing)
		Series A 4.75% 2/15/15		1,000,000		1,026,860
		Series C-1 5.50% 2/15/25 (ASSURED GTY)		2,500,000		2,953,350
	Moorhead Economic Development Authority
		Multifamily Housing Revenue Refunding
		(Eventide Lutheran Home Project) 4.70% 6/1/18		475,000		477,807
	Puerto Rico Industrial Tourist Educational Medical &
		Environmental Control Facilities Financing Authority
		(Auxilio Mutuo) Refunding Series A
		6.00% 7/1/33		890,000		1,014,556
	Rochester Health Care & Housing Revenue
		(Samaritan Bethany) Refunding
		Series A 6.875% 12/1/29		950,000		1,061,891
	Rochester Health Care Facilities Revenue
	•	(Mayo Clinic) Series A 4.00% 11/15/30		1,000,000		1,155,550
	•	(Mayo Clinic) Series C 4.50% 11/15/38		3,000,000		3,643,949
		(Olmsted Medical Center) 5.125% 7/1/20		1,000,000		1,094,660
	Sartell Health Care Revenue
		(Country Manor Campus Project) Series A
		5.00% 9/1/21		1,050,000		1,095,612
		6.125% 9/1/30		845,000		897,559
	St. Cloud Health Care Revenue
		(Centracare Health System Project)
		Series A 5.00% 5/1/16		500,000		566,505
	St. Louis Park Health Care Facilities Revenue Refunding
		(Park Nicollet Health Services)
		5.50% 7/1/29		1,000,000		1,115,100
		Series C 5.625% 7/1/26		2,500,000		2,789,850
	St. Paul Housing & Redevelopment Authority
		Health Care Revenue (Allina Health System)
		Series A-2 5.25% 11/15/28		2,000,000		2,236,620

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Paul Housing & Redevelopment Authority
	Housing & Health Care Facilities Revenue
	(Gillette Children’s Specialty Project)
	5.00% 2/1/20	$	500,000	$	515,985
	5.00% 2/1/27		1,000,000		1,074,450
	(Senior Carondelet Village Project)
	Series A 6.25% 8/1/30		1,000,000		1,081,180
	Wayzata Senior Housing Revenue
	(Folkestone Senior Living Community)
	Series B 4.875% 5/1/19		1,000,000		1,011,550
					32,532,103
Housing Revenue Bonds – 1.51%
	Minneapolis Multifamily Housing Revenue Refunding
	(Trinity Apartments) Series A
	6.75% 5/1/21 (HUD)		1,375,000		1,376,883
	Minnesota Housing Finance Agency Residential Housing
	Series I 5.10% 7/1/20 (AMT)		330,000		330,535
					1,707,418
Lease Revenue Bonds – 2.95%
	Puerto Rico Public Finance (Commonwealth Appropriate)
	Series B 6.00% 8/1/25		1,125,000		1,296,135
	St. Paul Housing & Redevelopment Authority Refunding
	(Minnesota Public Radio)
	5.00% 12/1/25		1,000,000		1,138,500
	Virginia Housing & Redevelopment Authority
	Health Care Facility Lease Revenue
	5.25% 10/1/25		880,000		913,343
					3,347,978
Local General Obligation Bonds – 18.58%
	Anoka County Capital Improvements
	Series C 5.00% 2/1/27		500,000		587,435
	Anoka-Hennepin Independent School District #11
	(School Building) Refunding 5.00% 2/1/17		1,000,000		1,181,560
	Brainerd Independent School District #181 Refunding
	(School Building) Series A 4.00% 2/1/22		2,500,000		2,780,400
	Duluth Independent School District #709
	Series A 4.25% 2/1/20 (AGM)		1,710,000		1,946,305

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Hennepin County Series B 4.00% 12/1/20	$	500,000	$	597,805
	Mankato Independent School District #77
	(School Building) Series A 4.125% 2/1/22		1,000,000		1,126,650
	Metropolitan Council Minneapolis-St. Paul Metropolitan
	Area Waste Water Treatment Series C
	5.00% 3/1/16		560,000		648,211
	5.00% 3/1/28		1,000,000		1,115,530
	Minneapolis Various Purposes 4.00% 12/1/23		1,500,000		1,626,135
	Olmsted County Refunding Series A 4.00% 2/1/24		2,000,000		2,319,600
	Robbinsdale Independent School District #281
	Series A 5.00% 2/1/20		1,850,000		2,351,332
	South Washington County Independent School District #833
	(School Building) Series A 4.00% 2/1/22		750,000		824,970
	St. Paul Independent School District #625
	(School Building) Series A 4.00% 2/1/15		1,020,000		1,105,853
	Thief River Falls Independent School District #564
	4.00% 2/1/30		500,000		557,020
	White Bear Lake Independent School District #624
	(Alternative Facilities) Series B
	4.75% 2/1/22		1,000,000		1,159,920
	Willmar City (Rice Memorial Hospital Project)
	Refunding Series A
	5.00% 2/1/23		500,000		610,845
	5.00% 2/1/27		440,000		524,638
					21,064,209
§Pre-Refunded/Escrowed to Maturity Bonds – 3.93%
	Minnesota Public Facilities Authority Water Pollution
	Control Revenue Refunding
	Series C 5.00% 3/1/18-15		1,000,000		1,116,310
	Puerto Rico Sales Tax Financing Corporation Sales Tax
	Revenue Series A 6.125% 8/1/29-14		5,000		5,418
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B 5.50% 7/1/25-14		1,500,000		1,640,310
	University of Minnesota Series A
	5.75% 7/1/16		1,000,000		1,187,530
	5.75% 7/1/18		400,000		502,104
					4,451,672

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 4.08%
@Minneapolis Tax Increment Revenue
	(Ivy Tower Project) 5.50% 2/1/22	$	415,000	$	396,765
	Minnesota 911 Revenue
	(Public Safety Radio Communication System Project)
	4.00% 6/1/14 (ASSURED GTY)		1,370,000		1,457,652
	4.25% 6/1/18 (ASSURED GTY)		1,170,000		1,376,002
	4.50% 6/1/25 (ASSURED GTY)		1,000,000		1,132,310
	Puerto Rico Sales Tax Financing Corporation
	Sales Tax Revenue First Subordinate
	Un-refunded Series A 6.125% 8/1/29		245,000		261,114
					4,623,843
State General Obligation Bonds – 5.20%
	Minnesota State
	Refunding 5.00% 8/1/15		2,000,000		2,267,560
	State Trunk Highway Series B 5.00% 10/1/22		400,000		507,004
	Minnesota State Refunding (Various Purposes)
	Series A 5.00% 12/1/21		1,000,000		1,246,180
	Series D 4.00% 8/1/17		645,000		748,677
	Puerto Rico Commonwealth Public Improvement
	Series A 5.50% 7/1/19 (NATL-RE) (IBC)		1,000,000		1,120,630
					5,890,051
Transportation Revenue Bonds – 3.70%
	Minneapolis - St. Paul Metropolitan Airports Commission
	Revenue Refunding Senior Series A
	5.00% 1/1/13 (AMT)		500,000		508,035
	5.00% 1/1/22 (AMBAC)		1,260,000		1,417,513
	Senior Series B 5.00% 1/1/22 (AMT)		1,000,000		1,133,970
	Subordinate Series D 5.00% 1/1/22 (AMT)		1,000,000		1,138,150
					4,197,668
Water & Sewer Revenue Bonds – 2.47%
	Minnesota Public Facilities Authority
	Series A 5.00% 3/1/22		1,000,000		1,286,540
	St. Paul Sewer Revenue Series D 5.00% 12/1/20		1,275,000		1,517,225
					2,803,765
Total Municipal Bonds (cost $105,255,114)					113,505,358

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund


Total Value of Securities – 100.12%
(cost $105,255,114)	$	113,505,358
Liabilities Net of Receivables
and Other Assets – (0.12%)		(136,255	)
Net Assets Applicable to 9,826,217
Shares Outstanding – 100.00%	$	113,369,103

Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
Class A ($97,032,239 / 8,412,750 Shares)	$	11.53
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
Class B ($126,636 / 10,947 Shares)	$	11.57
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
Class C ($16,210,228 / 1,402,520 Shares)	$	11.56

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	105,093,096
Undistributed net investment income		2,522
Accumulated net realized gain on investments		23,241
Net unrealized appreciation of investments		8,250,244
Total net assets	$	113,369,103

•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to financial statements.”
@	Illiquid security. At August 31, 2012, the aggregate value of illiquid securities was $396,765, which represented 0.35% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”


Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Minnesota Intermediate Fund
Net asset value Class A (A)	$	11.53
Sales charge (2.75% of offering price) (B)		0.33
Offering price	$	11.86

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)		See the current prospectus for purchases of $100,000 or more.

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
HUD — Housing and Urban Development Section 8
IBC — Insured Bond Certificate
NATL-RE — Insured by National Public Finance Guarantee Corporation

See accompanying notes, which are an integral part of the financial statements.

Statements of net assets

Delaware Minnesota High-Yield Municipal Bond Fund

August 31, 2012

		Principal amount		Value
Municipal Bonds – 99.47%
Corporate-Backed Revenue Bonds – 6.78%
	Cloquet Pollution Control Revenue Refunding
	(Potlatch Project) 5.90% 10/1/26	$	2,700,000	$	2,707,506
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21		1,750,000		1,834,280
	Minnesota Tobacco Securitization Authority
	(Tobacco Settlement Revenue) Refunding
	Series B 5.25% 3/1/31		4,000,000		4,521,920
	Sartell Environmental Improvement Revenue Refunding
	(International Paper) Series A
	5.20% 6/1/27		1,750,000		1,782,585
					10,846,291
Education Revenue Bonds – 10.00%
	Baytown Township Lease Revenue
	(St. Croix Preparatory Academy) Series A 7.00% 8/1/38		500,000		533,610
	Duluth Housing & Redevelopment Authority
	(Public School Academy)
	Series A 5.875% 11/1/40		1,000,000		1,034,950
	Minnesota Higher Education Facilities Authority Revenue
	(Augsburg College)
	Series 6-C 5.00% 5/1/23		700,000		717,220
	Series 6-J1 5.00% 5/1/36		1,000,000		1,017,780
	(Bethel University) Series 6-R 5.50% 5/1/37		1,500,000		1,567,545
	(Macalester College) Series 6-P 4.25% 3/1/32		1,000,000		1,042,190
	(St. Catherine University) Series 7-Q
	5.00% 10/1/25		325,000		373,497
	5.00% 10/1/26		280,000		320,410
	(St. John’s University) Series 6-U 4.75% 10/1/33		825,000		902,558
	(St. Olaf) Series 6-O
	4.50% 10/1/32		1,000,000		1,041,390
	5.00% 10/1/22		1,000,000		1,107,030
	(State Scholastic College) Series H 5.125% 12/1/40		750,000		807,248
	(University of St. Thomas)
	Series 6-I 5.00% 4/1/23		1,500,000		1,637,324
	Series 7-A 5.00% 10/1/39		1,000,000		1,118,290
	St. Paul Housing & Redevelopment Authority Charter
	School Lease Revenue (Nova Classical Academy)
	Series A 6.625% 9/1/42		1,500,000		1,632,075
	University of Minnesota Series A 5.125% 4/1/34		1,000,000		1,148,460
					16,001,577

		Principal amount		Value
Municipal Bonds (continued)
Electric Revenue Bonds – 6.48%
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.25% 10/1/25	$	1,000,000	$	1,079,090
	Hutchinson Utilities Commission Series A
	5.00% 12/1/22		490,000		602,235
	5.00% 12/1/26		360,000		431,446
	Minnesota Municipal Power Agency Electric Revenue
	Series A 5.00% 10/1/34		2,750,000		2,947,367
	Northern Municipal Power Agency Electric System Revenue
	Series A 5.00% 1/1/18 (ASSURED GTY)		1,000,000		1,193,160
	Puerto Rico Electric Power Authority Revenue
	Series XX 5.25% 7/1/40		1,665,000		1,732,616
	Southern Minnesota Municipal Power Agency Supply
	System Revenue Series A 5.25% 1/1/16 (AMBAC)		500,000		574,555
	Western Minnesota Municipal Power Agency Refunding
	Series A 5.00% 1/1/29		1,500,000		1,816,004
					10,376,473
Healthcare Revenue Bonds – 38.40%
	Aitkin Health Care Facilities Revenue Refunding
	(Riverwood Health Care Center) 5.50% 2/1/24		700,000		728,658
	Anoka Health Care Facility Revenue
	(Homestead Anoka Project) Series A 7.00% 11/1/46		1,650,000		1,760,946
	Anoka Housing & Redevelopment Authority Revenue
	(Fridley Medical Center Project)
	Series A 6.875% 5/1/40		1,000,000		1,098,080
	Apple Valley Economic Development Authority Health
	Care Revenue (Augustanna Home St. Paul Project)
	Series A 5.80% 1/1/30		1,000,000		1,031,320
	Breckenridge Catholic Health Initiatives
	Series A 5.00% 5/1/30		2,000,000		2,109,820
	Detroit Lakes Housing & Health Facilities Revenue
	Refunding (Mankato Lutheran Homes)
	Series D 5.50% 8/1/21		500,000		500,450
	Glencoe Health Care Facilities Revenue
	(Glencoe Regional Health Services Project)
	5.00% 4/1/20		1,100,000		1,121,989
	5.00% 4/1/31		1,965,000		1,992,667

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Mahtomedi Senior Housing Revenue Refunding
	(St. Andrews Village Project) 5.75% 12/1/40	$	1,000,000	$	1,019,450
	Maple Grove Health Care System Revenue
	(Maple Grove Hospital)
	5.25% 5/1/28		2,200,000		2,321,154
	5.25% 5/1/37		1,000,000		1,046,820
	Minneapolis Health Care System Revenue
	(Fairview Health Services)
	Series A 6.625% 11/15/28		1,900,000		2,277,112
	Series B 6.50% 11/15/38 (ASSURED GTY)		250,000		298,960
	Series D 5.00% 11/15/34 (AMBAC)		3,000,000		3,104,310
	Minneapolis-St. Paul Housing & Redevelopment Authority
	(Health Partners Obligation Group Project)
	6.00% 12/1/17		525,000		550,237
	Minnesota Agricultural & Economic Development
	Board Revenue (Benedictine Health Systems)
	5.75% 2/1/29		1,000,000		1,000,440
	Moorhead Economic Development Authority
	Multifamily Housing Revenue Refunding
	(Eventide Luthern Home Project) Series A 5.15% 6/1/29		550,000		550,127
	Northfield Hospital Skilled Nursing Revenue
	5.375% 11/1/31		1,000,000		1,046,180
	Oak Park Heights Housing Revenue
	(Oakgreen Commons Project) 7.00% 8/1/45		1,500,000		1,627,725
	Owatonna Senior Housing Revenue
	(Senior Living Project) Series A
	5.80% 10/1/29		400,000		413,032
	6.00% 4/1/41		1,250,000		1,283,063
	Rochester Health Care & Housing Revenue
	(Samaritan Bethany) Refunding Series A
	6.875% 12/1/29		1,000,000		1,117,780
	7.375% 12/1/41		375,000		423,413
	Rochester Health Care Facilities Revenue (Mayo Clinic)
	4.00% 11/15/41		3,750,000		3,926,625
	Sartell Health Care Facilities Revenue
	(Country Manor Campus Project) Series A
	5.25% 9/1/22		1,080,000		1,137,532
	6.25% 9/1/36		925,000		988,168

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Shakopee Health Care Facilities Revenue
	(St. Francis Regional Medical Center) 5.25% 9/1/34	$	1,000,000	$	1,020,620
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	5.50% 5/1/39 (ASSURED GTY)		1,500,000		1,666,755
	Series A 5.125% 5/1/30		2,125,000		2,347,063
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services)
	Refunding 5.75% 7/1/39		3,830,000		4,306,183
	Series C 5.50% 7/1/23		1,000,000		1,120,890
	St. Paul Housing & Redevelopment Authority
	Health Care Facilities Revenue
	(Health Partners Obligation Group Project)
	5.25% 5/15/36		1,000,000		1,041,010
	(Senior Carondelet Village Project)
	Series A 6.00% 8/1/42		770,000		817,440
	St. Paul Housing & Redevelopment Authority Health
	Care Revenue (Allina Health System)
	Series A 5.00% 11/15/18 (NATL-RE)		1,900,000		2,223,456
	St. Paul Housing & Redevelopment Authority
	Hospital Revenue (Health East Project)
	6.00% 11/15/25		1,000,000		1,061,400
	6.00% 11/15/30		1,000,000		1,056,770
	St. Paul Housing & Redevelopment Authority Multifamily
	Housing Revenue Refunding (Marion Center Project)
	Series A 5.375% 5/1/43		1,000,000		973,120
	Stillwater Health Care Revenue
	(Health System Obligation Group)
	5.00% 6/1/25		2,000,000		2,070,140
	5.00% 6/1/35		1,000,000		1,026,920
@	Twin Valley Congregate Housing Revenue
	(Living Options Project) 5.95% 11/1/28		1,825,000		1,825,018
	Washington County Housing & Redevelopment
	Authority Healthcare & Housing Revenue
	(Birchwood & Woodbury Projects)
	Series A 5.625% 6/1/37		1,000,000		1,018,650
	Wayzata Senior Housing Revenue
	(Folkestone Senior Living Community) Series A
	5.50% 11/1/32		260,000		268,294
	5.75% 11/1/39		590,000		615,287
	6.00% 5/1/47		920,000		968,778

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Winona Health Care Facilities Revenue Refunding
	(Winona Health Obligation Group) 5.15% 7/1/31	$	1,500,000	$	1,570,410
					61,474,262
Housing Revenue Bonds – 9.54%
	Chaska Multifamily Housing Revenue
	(West Suburban Housing Partners Project)
	5.875% 3/1/31 (AMT)		1,000,000		926,210
	Minneapolis Multifamily Housing Revenue
	(Grant Street Apartments Project) Refunding
	Series A 7.25% 11/1/29		2,025,000		2,027,896
	(Olson Townhomes Project) 6.00% 12/1/19 (AMT)		1,090,000		1,090,371
	(Trinity Apartments) Series A 6.75% 5/1/21 (HUD)		510,000		510,699
	Minneapolis-St. Paul Housing Finance Board Single
	Family Mortgage (City Living Project) Series A-2
	5.00% 12/1/38 (GNMA) (FNMA) (AMT)		461,533		475,577
	Minnesota Housing Finance Agency
	(Rental Housing)
	Series A 4.875% 8/1/24 (AMT)		585,000		591,885
	Series A-1 5.00% 8/1/40 (AMT)		2,265,000		2,316,370
	(Residential Housing)
	Series G 5.00% 7/1/36 (AMT)		855,000		875,913
	Series I 4.85% 7/1/38 (AMT)		1,030,000		1,055,441
	Series L 5.10% 7/1/38 (AMT)		1,365,000		1,415,601
	Series M 4.875% 7/1/37 (AMT)		2,455,000		2,511,660
	St. Paul Housing & Redevelopment Authority
	Multifamily Housing Revenue
	(Shelby Grotto Housing Project)
	5.50% 9/20/44 (GNMA) (FHA) (AMT)		750,000		760,268
	Stillwater Multifamily Housing Revenue
	(Orleans Homes Project) 5.50% 2/1/42 (AMT)		750,000		706,313
					15,264,204
Lease Revenue Bonds – 2.56%
	St. Paul Port Authority Lease Revenue
	(Robert Street Office Building Project) Series 3-11
	5.00% 12/1/27		1,000,000		1,042,930
	University of Minnesota Special Purpose Revenue
	(State Supported Stadium Debt)
	5.00% 8/1/29		2,660,000		3,054,611
					4,097,541

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds – 10.32%
	Chaska Independent School District #112
	(School Building) Series A 4.50% 2/1/28 (NATL-RE)	$	1,000,000	$	1,078,560
	Farmington Independent School District #192
	(School Building) Series B 5.00% 2/1/27 (AGM)		1,000,000		1,087,610
	Foley Independent School District #51 (School Building)
	Refunding Series A 5.00% 2/1/21		1,105,000		1,249,026
	Hopkins Independent School District #270
	(Alternative Facilities) 5.00% 2/1/26 (NATL-RE)		1,055,000		1,146,110
	Lakeville Independent School District #194
	(School Building ) Refunding
	Series A 4.75% 2/1/22 (AGM)		1,000,000		1,015,720
	Metropolitan Council Waste Water Treatment
	Series B 5.00% 12/1/21		500,000		544,285
	Series C 5.00% 3/1/28		1,000,000		1,115,530
	Minneapolis Various Purposes 4.00% 12/1/23		1,500,000		1,626,135
	Moorhead Improvement Series B 5.00% 2/1/33 (NATL-RE)		750,000		792,398
	South Washington County Independent School District #833
	(School Building) Series A 4.75% 2/1/27		1,500,000		1,671,884
	Thief River Falls Independent School District #564
	(School Building) Series A 4.00% 2/1/30		865,000		963,645
	Staples United Hospital District (Todd Morrison ETC
	Hospital-Health Care Facilities-Lakewood)
	5.00% 12/1/21		610,000		647,509
	5.125% 12/1/24		205,000		216,441
	5.25% 12/1/26		1,540,000		1,624,269
	White Bear Lake Independent School District #624
	(Alternative Facilities) Series B 4.75% 2/1/22		1,500,000		1,739,879
					16,519,001
§Pre-Refunded Bonds – 3.16%
	Andover Economic Development Authority Public
	Facilities Lease Revenue (Andover Community Center)
	5.20% 2/1/34-14		1,000,000		1,059,330
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services)
	Refunding 5.00% 9/1/20-16		1,150,000		1,343,131
	Minnesota State 5.00% 8/1/21-13 (AGM)		1,250,000		1,304,825
	Western Minnesota Municipal Power Agency Supply
	Revenue Series A 5.00% 1/1/30-13 (NATL-RE)		1,335,000		1,356,453
					5,063,739

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 8.26%
	Hennepin County Sales Tax Revenue
	(First Lien - Ball Park Project) Series B 5.00% 12/15/24	$	1,000,000	$	1,186,700
	(Second Lien - Ballpark Project) Series B
	5.00% 12/15/20		1,500,000		1,769,970
	5.00% 12/15/24		1,000,000		1,161,930
	Minneapolis Supported Development Revenue
	(Limited Tax-Common Bond Fund)
	Series 2A 5.00% 6/1/28 (AMT)		1,170,000		1,215,876
	Minneapolis Tax Increment Revenue
	@(Ivy Tower Project) 5.70% 2/1/29		785,000		713,306
	(St. Anthony Falls Project) 5.65% 2/1/27		500,000		502,265
	Minnesota 911 Revenue
	(Public Safety Radio Commission System Project)
	5.00% 6/1/24 (ASSURED GTY)		1,000,000		1,175,520
	Puerto Rico Sales Tax Financing Corporation Sales Tax
	Revenue First Subordinated
	Series A 5.00% 8/1/46		1,750,000		1,888,827
	Series C 5.75% 8/1/37		790,000		882,138
	St. Paul Port Authority (Brownsfields Redevelopment Tax)
	Series 2 5.00% 3/1/37		1,500,000		1,676,820
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan Note)
	Series A 5.25% 10/1/24		1,000,000		1,054,110
					13,227,462
State General Obligation Bonds – 2.08%
	Minnesota State Series A
	5.00% 10/1/24		1,000,000		1,248,690
	5.00% 10/1/27		1,000,000		1,230,120
	(Various Purposes) 4.00% 8/1/27		750,000		849,593
					3,328,403
Transportation Revenue Bonds – 1.48%
	Minneapolis - St. Paul Metropolitan Airports Commission
	Revenue Series A Refunding 5.00% 1/1/15 (AMT)		1,000,000		1,097,740
	Unrefunded Portion 5.00% 1/1/28 (NATL-RE)		1,260,000		1,268,996
					2,366,736

		Principal amount		Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 0.41%
	Puerto Rico Commonwealth Aqueduct & Sewer Authority
	Revenue (Senior Lien) Series A
	5.25% 7/1/42	$	260,000	$	261,669
	6.00% 7/1/47		365,000		399,734
					661,403
Total Municipal Bonds (cost $149,525,137)					159,227,092

		Number of shares
Short-Term Investments – 0.89%
Money Market Instrument – 0.27%
	Minnesota Municipal Cash Trust		429,529		429,529
					429,529

		Principal amount
¤Variable Rate Demand Notes – 0.62%
	Center City Health Care Facilities Revenue
	(Hazelden Foundation Project)
	0.21% 11/1/35 (LOC–US Bank N.A.)	$	500,000		500,000
	Minneapolis & St. Paul Housing & Redevelopment
	Authority Health Care (Allina Health System)
	Series B-1 0.18% 11/15/35
	(LOC-JPMorgan Chase Bank N.A.)		500,000		500,000
					1,000,000
Total Short-Term Investments (cost $1,429,529)					1,429,529

Total Value of Securities – 100.36%
	(cost $150,954,666)				160,656,621
Liabilities Net of Receivables
	and Other Assets – (0.36%)				(579,257	)
Net Assets Applicable to 14,443,082
	Shares Outstanding – 100.00%			$	160,077,364

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund


Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
Class A ($124,717,631 / 11,257,482 Shares)			$11.08
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
Class B ($1,927,850 / 173,763 Shares)			$11.09
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
Class C ($33,431,883 / 3,011,837 Shares)			$11.10

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	153,706,617
Accumulated net realized loss on investments		(3,331,208		)
Net unrealized appreciation of investments		9,701,955
Total net assets	$	160,077,364

@	Illiquid security. At August 31, 2012, the aggregate value of illiquid securities was $2,538,324, which represented 1.59% of the Fund’s net assets. See Note 9 “Notes to financial statements.”
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 “Notes to financial statements.”
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.

Net Asset Value and Offering Price Per Share –
Delaware Minnesota High-Yield Municipal Bond Fund
Net asset value Class A (A)	$	11.08
Sales charge (4.50% of offering price) (B)		0.52
Offering price	$	11.60

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
FHA — Federal Housing Administration
FNMA — Federal National Mortgage Association Collateral
GNMA — Government National Mortgage Association Collateral
HUD — Housing and Urban Development Section 8
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation

See accompanying notes, which are an integral part of the financial statements.

Statements of operations
			Year Ended August 31, 2012

				Delaware			Delaware
	Delaware			Tax-Free			Minnesota
	Tax-Free			Minnesota			High-Yield
	Minnesota			Intermediate			Municipal
	Fund			Fund			Bond Fund
Investment Income:
Interest	$	28,073,874		$	4,283,023		$	7,054,320

Expenses:
Management fees		3,232,727			541,102			812,205
Distribution expenses – Class A		1,391,877			233,441			289,777
Distribution expenses – Class B		26,867			1,304			22,745
Distribution expenses – Class C		369,395			146,455			293,434
Dividend disbursing and transfer agent fees
and expenses		298,134			85,867			117,334
Accounting and administration expenses		233,719			42,398			57,852
Legal fees		55,925			10,689			14,026
Reports and statements to shareholders		45,978			11,544			15,276
Registration fees		39,672			22,280			11,006
Trustees’ fees		28,770			5,219			7,102
Audit and tax		23,463			13,483			14,030
Pricing fees		15,094			8,962			11,086
Custodian fees		12,598			2,525			3,376
Insurance fees		10,712			2,431			2,598
Consulting fees		5,297			967			1,322
Trustees’ expenses		1,748			314			425
Dues and services		—			2,048			1,160
		5,791,976			1,131,029			1,674,754
Less fees waived		(125,525	)		(3,233	)		(123,726	)
Less waived distribution expenses – Class A		—			(93,377	)		—
Less expense paid indirectly		(240	)		(52	)		(79	)
Total operating expenses		5,666,211			1,034,367			1,550,949
Net Investment Income		22,407,663			3,248,656			5,503,371

			Delaware		Delaware
	Delaware		Tax-Free		Minnesota
	Tax-Free		Minnesota		High-Yield
	Minnesota		Intermediate		Municipal
	Fund		Fund		Bond Fund
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments	$	3,795,510	$	736,277	$	(37,455	)
Net change in unrealized appreciation
(depreciation) of investments		26,931,845		3,068,062		8,052,212
Net Realized and Unrealized Gain
on Investments		30,727,355		3,804,339		8,014,757

Net Increase in Net Assets Resulting
from Operations	$	53,135,018	$	7,052,995	$	13,518,128

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free Minnesota Fund

	Year Ended
	8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	22,407,663		$	23,219,831
Net realized gain		3,795,510			5,727,375
Net change in unrealized appreciation (depreciation)		26,931,845			(17,549,949	)
Net increase in net assets resulting from operations		53,135,018			11,397,257

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(21,261,629	)		(21,934,140	)
Class B		(83,053	)		(166,719	)
Class C		(1,131,487	)		(1,159,231	)

Net realized gain:
Class A		(4,685,181	)		(2,377,491	)
Class B		(27,936	)		(25,548	)
Class C		(298,043	)		(157,451	)
		(27,487,329	)		(25,820,580	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		39,518,270			33,925,958
Class B		550			114
Class C		8,153,603			4,786,945

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		19,125,817			16,441,608
Class B		84,436			130,489
Class C		1,250,679			1,079,596
		68,133,355			56,364,710

	Year Ended
	8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(43,720,146	)	$	(85,566,853	)
Class B		(1,780,758	)		(3,466,023	)
Class C		(4,028,713	)		(9,482,119	)
		(49,529,617	)		(98,514,995	)
Increase (decrease) in net assets derived from
capital share transactions		18,603,738			(42,150,285	)
Net Increase (Decrease) in Net Assets		44,251,427			(56,573,608	)

Net Assets:
Beginning of year		576,292,457			632,866,065
End of year	$	620,543,884		$	576,292,457

Distributions in excess of net investment income	$	(150,996	)	$	(150,996	)

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free Minnesota Intermediate Fund

	Year Ended
	8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	3,248,656		$	3,410,499
Net realized gain		736,277			27,316
Net change in unrealized appreciation (depreciation)		3,068,062			(1,912,414	)
Net increase in net assets resulting from operations		7,052,995			1,525,401

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(2,916,637	)		(3,042,351	)
Class B		(2,974	)		(3,741	)
Class C		(332,568	)		(366,017	)
		(3,252,179	)		(3,412,109	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		15,579,059			14,007,052
Class C		3,942,041			2,568,568

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		2,210,168			1,999,803
Class B		2,974			3,714
Class C		283,219			282,643
		22,017,461			18,861,780

	Year Ended
	8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(11,973,276	)	$	(23,024,565	)
Class B		(15,778	)		(36,216	)
Class C		(2,468,234	)		(3,293,158	)
		(14,457,288	)		(26,353,939	)
Increase (decrease) in net assets derived from
capital share transactions		7,560,173			(7,492,159	)
Net Increase (Decrease) in Net Assets		11,360,989			(9,378,867	)

Net Assets:
Beginning of year		102,008,114			111,386,981
End of year	$	113,369,103		$	102,008,114

Undistributed net investment income	$	2,522		$	2,522

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Minnesota High-Yield Municipal Bond Fund

	Year Ended
	8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	5,503,371		$	5,703,713
Net realized gain (loss)		(37,455	)		901,530
Net change in unrealized appreciation (depreciation)		8,052,212			(4,620,709	)
Net increase in net assets resulting from operations		13,518,128			1,984,534

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(4,569,906	)		(4,637,136	)
Class B		(72,794	)		(116,820	)
Class C		(935,918	)		(920,280	)
		(5,578,618	)		(5,674,236	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		20,963,432			13,547,458
Class B		190			717
Class C		7,092,669			3,701,679

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		3,294,287			2,968,440
Class B		66,747			98,527
Class C		784,031			738,115
		32,201,356			21,054,936

	Year Ended
	8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(14,616,517	)	$	(23,834,496	)
Class B		(1,154,495	)		(1,224,390	)
Class C		(2,732,207	)		(5,761,704	)
		(18,503,219	)		(30,820,590	)
Increase (decrease) in net assets derived from
capital share transactions		13,698,137			(9,765,654	)
Net Increase (Decrease) in Net Assets		21,637,647			(13,455,356	)

Net Assets:
Beginning of year		138,439,717			151,895,073
End of year	$	160,077,364		$	138,439,717

Distributions in excess of net investment income	$	—		$	(122	)

See accompanying notes, which are an integral part of the financial statements.

Financial highlights
Delaware Tax-Free Minnesota Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets excluding interest and fees on short-term floating

rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses²

Ratio of expenses to average net assets excluding interest and fees on short-term floating

rate notes issued prior to fees waived

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived²

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$12.480		$12.730		$12.180		$12.120		$12.170


	0.487		0.492		0.484		0.474		0.495
	0.660		(0.198	)	0.550		0.107		(0.041	)
	1.147		0.294		1.034		0.581		0.454


	(0.488	)	(0.492	)	(0.484	)	(0.473	)	(0.502	)
	(0.109	)	(0.052	)	—		(0.048	)	(0.002	)
	(0.597	)	(0.544	)	(0.484	)	(0.521	)	(0.504	)

	$13.030		$12.480		$12.730		$12.180		$12.120

	9.41%		2.50%		8.66%		5.04%		3.77%


	$577,061		$538,170		$586,651		$559,393		$574,914

	0.90%		0.91%		0.93%		0.92%		0.93%
	—		—		—		0.01%		0.18%
	0.90%		0.91%		0.93%		0.93%		1.11%


	0.92%		0.93%		0.93%		0.94%		0.93%
	—		—		—		0.01%		0.18%
	0.92%		0.93%		0.93%		0.95%		1.11%

	3.81%		4.02%		3.89%		4.03%		4.05%

	3.79%		4.00%		3.89%		4.01%		4.05%
	16%		12%		20%		20%		17%

²Total expenses and total expenses prior to fees waived and expense paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 8 in “Notes to financial statements.”

Financial highlights
Delaware Tax-Free Minnesota Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets excluding interest and fees on short-term floating

rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses²

Ratio of expenses to average net assets excluding interest and fees on short-term floating

rate notes issued prior to fees waived

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived²

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$12.490		$12.740		$12.190		$12.130		$12.180


	0.391		0.400		0.391		0.386		0.403
	0.660		(0.197	)	0.550		0.107		(0.041	)
	1.051		0.203		0.941		0.493		0.362


	(0.392	)	(0.401	)	(0.391	)	(0.385	)	(0.410	)
	(0.109	)	(0.052	)	—		(0.048	)	(0.002	)
	(0.501	)	(0.453	)	(0.391	)	(0.433	)	(0.412	)

	$13.040		$12.490		$12.740		$12.190		$12.130

	8.59%		1.74%		7.85%		4.26%		2.99%


	$2,115		$3,697		$7,234		$9,506		$11,593

	1.65%		1.66%		1.68%		1.67%		1.68%
	—		—		—		0.01%		0.18%
	1.65%		1.66%		1.68%		1.68%		1.86%


	1.67%		1.68%		1.68%		1.69%		1.68%
	—		—		—		0.01%		0.18%
	1.67%		1.68%		1.68%		1.70%		1.86%

	3.06%		3.27%		3.14%		3.28%		3.30%

	3.04%		3.25%		3.14%		3.26%		3.30%
	16%		12%		20%		20%		17%

Financial highlights
Delaware Tax-Free Minnesota Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets excluding interest and fees on short-term floating

rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses²

Ratio of expenses to average net assets excluding interest and fees on short-term floating

rate notes issued prior to fees waived

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived²

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$12.520		$12.780		$12.220		$12.160		$12.200


	0.392		0.401		0.392		0.386		0.403
	0.660		(0.207	)	0.560		0.107		(0.031	)
	1.052		0.194		0.952		0.493		0.372


	(0.393	)	(0.402	)	(0.392	)	(0.385	)	(0.410	)
	(0.109	)	(0.052	)	—		(0.048	)	(0.002	)
	(0.502	)	(0.454	)	(0.392	)	(0.433	)	(0.412	)

	$13.070		$12.520		$12.780		$12.220		$12.160

	8.58%		1.66%		7.91%		4.25%		3.06%


	$41,368		$34,425		$38,981		$34,174		$27,585

	1.65%		1.66%		1.68%		1.67%		1.68%
	—		—		—		0.01%		0.18%
	1.65%		1.66%		1.68%		1.68%		1.86%


	1.67%		1.68%		1.68%		1.69%		1.68%
	—		—		—		0.01%		0.18%
	1.67%		1.68%		1.68%		1.70%		1.86%

	3.06%		3.27%		3.14%		3.28%		3.30%

	3.04%		3.25%		3.14%		3.26%		3.30%
	16%		12%		20%		20%		17%

² Total expenses and total expenses prior to fees waived and expense paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 8 in “Notes to financial statements.”

Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$11.130		$11.290		$10.820		$10.720		$10.610


	0.355		0.375		0.376		0.384		0.414
	0.400		(0.160	)	0.469		0.100		0.110
	0.755		0.215		0.845		0.484		0.524


	(0.355	)	(0.375	)	(0.375	)	(0.384	)	(0.414	)
	(0.355	)	(0.375	)	(0.375	)	(0.384	)	(0.414	)

	$11.530		$11.130		$11.290		$10.820		$10.720

	6.88%		2.02%		7.96%		4.67%		5.00%


	$97,032		$87,924		$96,568		$78,021		$58,465
	0.84%		0.84%		0.82%		0.75%		0.75%

	0.94%		0.95%		0.96%		0.97%		0.95%
	3.12%		3.43%		3.42%		3.62%		3.83%

	3.02%		3.32%		3.28%		3.40%		3.63%
	21%		24%		22%		12%		27%

Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$11.170		$11.330		$10.850		$10.750		$10.640


	0.259		0.283		0.284		0.295		0.322
	0.400		(0.160	)	0.479		0.100		0.110
	0.659		0.123		0.763		0.395		0.432


	(0.259	)	(0.283	)	(0.283	)	(0.295	)	(0.322	)
	(0.259	)	(0.283	)	(0.283	)	(0.295	)	(0.322	)

	$11.570		$11.170		$11.330		$10.850		$10.750

	5.96%		1.16%		7.14%		3.79%		4.10%


	$127		$135		$170		$317		$908
	1.69%		1.69%		1.67%		1.60%		1.60%

	1.69%		1.70%		1.71%		1.72%		1.70%
	2.27%		2.58%		2.57%		2.77%		2.98%

	2.27%		2.57%		2.53%		2.65%		2.88%
	21%		24%		22%		12%		27%

Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.160		$11.320		$10.840		$10.740		$10.630


0.259		0.283		0.283		0.295		0.322
0.400		(0.160	)	0.479		0.100		0.110
0.659		0.123		0.762		0.395		0.432


(0.259	)	(0.283	)	(0.282	)	(0.295	)	(0.322	)
(0.259	)	(0.283	)	(0.282	)	(0.295	)	(0.322	)

$11.560		$11.160		$11.320		$10.840		$10.740

5.96%		1.16%		7.14%		3.78%		4.10%


$16,210		$13,949		$14,649		$11,276		$7,126
1.69%		1.69%		1.67%		1.60%		1.60%

1.69%		1.70%		1.71%		1.72%		1.70%
2.27%		2.58%		2.57%		2.77%		2.98%

2.27%		2.57%		2.53%		2.65%		2.88%
21%		24%		22%		12%		27%

Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.490		$10.710		$9.910		$10.000		$10.180


0.420		0.430		0.415		0.422		0.418
0.596		(0.222	)	0.798		(0.091	)	(0.180	)
1.016		0.208		1.213		0.331		0.238


(0.426	)	(0.428	)	(0.413	)	(0.421	)	(0.418	)
(0.426	)	(0.428	)	(0.413	)	(0.421	)	(0.418	)

$11.080		$10.490		$10.710		$9.910		$10.000

9.86%		2.12%		12.46%		3.63%		2.35%


$124,717		$108,830		$119,038		$107,951		$116,999
0.89%		0.91%		0.93%		0.89%		0.89%

0.97%		0.98%		0.98%		0.97%		0.97%
3.89%		4.20%		4.02%		4.49%		4.11%

3.81%		4.13%		3.97%		4.41%		4.03%
13%		5%		11%		12%		10%

Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.510		$10.720		$9.920		$10.010		$10.190


0.340		0.354		0.338		0.352		0.341
0.586		(0.212	)	0.798		(0.091	)	(0.179	)
0.926		0.142		1.136		0.261		0.162


(0.346	)	(0.352	)	(0.336	)	(0.351	)	(0.342	)
(0.346	)	(0.352	)	(0.336	)	(0.351	)	(0.342	)

$11.090		$10.510		$10.720		$9.920		$10.010

8.93%		1.46%		11.62%		2.86%		1.58%


$1,928		$2,892		$4,130		$4,995		$5,907
1.64%		1.66%		1.68%		1.64%		1.64%

1.72%		1.73%		1.73%		1.72%		1.72%
3.14%		3.45%		3.27%		3.74%		3.36%

3.06%		3.38%		3.22%		3.66%		3.28%
13%		5%		11%		12%		10%

Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.510		$10.730		$9.930		$10.020		$10.200


0.340		0.354		0.338		0.352		0.342
0.596		(0.222	)	0.798		(0.091	)	(0.181	)
0.936		0.132		1.136		0.261		0.161


(0.346	)	(0.352	)	(0.336	)	(0.351	)	(0.341	)
(0.346	)	(0.352	)	(0.336	)	(0.351	)	(0.341	)

$11.100		$10.510		$10.730		$9.930		$10.020

9.03%		1.36%		11.61%		2.85%		1.58%


$33,432		$26,718		$28,727		$24,740		$28,849
1.64%		1.66%		1.68%		1.64%		1.64%

1.72%		1.73%		1.73%		1.72%		1.72%
3.14%		3.45%		3.27%		3.74%		3.36%

3.06%		3.38%		3.22%		3.66%		3.28%
13%		5%		11%		12%		10%

Notes to financial statements
Delaware Investments^®Minnesota Municipal Bond Funds	August 31, 2012

Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund. Voyageur Tax-Free Funds is organized as a Delaware statutory trust and offers Delaware Tax-Free Minnesota Fund. Voyageur Intermediate Tax-Free Funds is organized as a Delaware statutory trust and offers Delaware Tax-Free Minnesota Intermediate Fund. Voyageur Mutual Funds, Voyageur Tax-Free Funds and Voyageur Intermediate Tax-Free Funds are individually referred to as a Trust and collectively as Trusts. These financial statements and the related notes pertain to Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund (each referred to as a Fund or collectively as the Funds). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, and Class C shares. Class A shares are sold with a maximum front-end sales charge of 4.50% for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund and 2.75% for Delaware Tax-Free Minnesota Intermediate Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and 0.75% for Delaware Tax-Free Minnesota Intermediate Fund if redeemed within the first year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and declined from 2% to zero for Delaware Tax-Free Minnesota Intermediate Fund depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund and approximately five years after purchase for Delaware Tax-Free Minnesota Intermediate Fund. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months.

The investment objective of Delaware Tax-Free Minnesota Fund is to seek as high a level of current income exempt from federal income tax and from the Minnesota state personal income tax as is consistent with preservation of capital.

The investment objective of Delaware Tax-Free Minnesota Intermediate Fund is to seek to provide investors with preservation of capital and, secondarily, current income exempt from federal income tax and the Minnesota state personal income tax, by maintaining a dollar-weighted average effective portfolio maturity of 10 years or less.

The investment objective of Delaware Minnesota High-Yield Municipal Bond Fund is to seek as high a level of current income exempt from federal income tax and from Minnesota state personal income taxes, primarily through investment in medium- and lower-grade municipal obligations.

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Funds.

Security Valuation — Open-end investment companies are valued at their published net asset value. Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.

Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (August 31, 2009–August 31, 2012), and has concluded that no provision for federal income tax is required in the Funds’ financial statements.

Class Accounting — Investment income and common expenses are allocated to the various classes of the Funds on the basis of “settled shares” of each class in relation to the net assets of the Funds. Realized and unrealized gain (loss) on investments are allocated to the various classes of the Funds on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.

Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.

Notes to financial statements
Delaware Investments^® Minnesota Municipal Bond Funds

1. Significant Accounting Policies (continued)

Interest and Related Expenses — Interest and related expenses include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees from a Fund’s participation in inverse floater programs where the Fund has transferred its own bonds to a trust that issues floating rate securities with an aggregate principal amount equal to the principal of the transferred bonds. In conveyance of the bond, a Fund receives the inverse floating rate securities and cash from the trust. As a result of certain rights retained by a Fund, the transfer of the bond is not considered a sale, but rather a form of financing for accounting purposes whereby the cash received is recorded as a liability and interest expense is recorded based on the interest rate of the floating rate securities. Remarketing fees, liquidity fees, and trustees’ expenses are recorded on the accrual basis. There were no interest and related expenses for the year ended August 31, 2012.

Other — Expenses directly attributable to the Funds are charged directly to the Funds. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays such dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. The Funds may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

The Funds may receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the year ended August 31, 2012.

The Funds receive earnings credits from their transfer agent when positive cash balances are maintained, which are used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statements of operations with the corresponding expense offset shown as “expense paid indirectly.” For the year ended August 31, 2012, the Funds earned the following under this agreement:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$240	$52	$79

2. Investment Management, Administration Agreements and Other Transactions with Affiliates

In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual fee, which is calculated based on each Fund’s average daily net assets as follows:

		Delaware Tax-Free	Delaware Minnesota
	Delaware Tax-Free	Minnesota	High-Yield Municipal
	Minnesota Fund	Intermediate Fund	Bond Fund
On the first $500 million	0.550%	0.500%	0.550%
On the next $500 million	0.500%	0.475%	0.500%
On the next $1.5 billion	0.450%	0.450%	0.450%
In excess of $2.5 billion	0.425%	0.425%	0.425%

DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse the Funds to the extent necessary to prevent total annual fund operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding the following percentages of each Fund’s average daily net assets through December 28, 2012. For purposes of these waivers and reimbursements, nonroutine expenses may also include such additional costs and expenses as may be agreed upon from time to time by the Funds’ Boards and DMC. These expense waivers and reimbursements apply only to expenses paid directly by the Funds and may only be terminated by agreement of DMC and the Funds.

		Delaware Tax-Free	Delaware Minnesota
	Delaware Tax-Free	Minnesota	High-Yield Municipal
	Minnesota Fund	Intermediate Fund	Bond Fund
Operating expense limitation as a
percentage of average daily net
assets (per annum)	0.65%	0.69%	0.64%

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, the Funds pay DSC fees based on the aggregate daily net assets of the Delaware Investments^® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Delaware Investments Family of Funds on a relative net asset value basis. For the year ended August 31, 2012, each Fund was charged for these services as follows:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$29,346	$5,323	$7,264

Notes to financial statements
Delaware Investments^® Minnesota Municipal Bond Funds

2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)

DSC also provides dividend disbursing and transfer agency services. The Funds pay DSC a monthly asset-based fee for these services.

Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee of 0.25% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class B and Class C shares. DDLP has contracted to limit Delaware Tax-Free Minnesota Intermediate Fund’s Class A shares 12b-1 fees through December 28, 2012 to 0.15% of average daily net assets.

At August 31, 2012, each Fund had liabilities payable to affiliates as follows:

				Delaware Tax-Free			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Investment management fees
payable to DMC		$	275,063		$	55,668		$	67,795
Dividend disbursing, transfer
agent and fund accounting
oversight fees and other
expenses payable to DSC			14,436			2,633			3,691
Distribution fees payable
to DDLP			158,042			25,911			55,636
Other expenses payable to
DMC and affiliates*			10,211			2,138			3,247

*DMC, as part of its administrative services, pays operating expenses on behalf of each Fund and is reimbursed on a periodic basis. Expenses include items such as printing of shareholder reports, fees for audit, legal and tax services, registration fees and trustees’ fees.

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the year ended August 31, 2012, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$16,515	$3,007	$4,077

For the year ended August 31, 2012, DDLP earned commissions on sales of Class A shares for each Fund as follows:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$77,384	$12,143	$40,721

For the year ended August 31, 2012, DDLP received gross CDSC commissions on redemption of each Fund’s Class A, Class B and Class C shares, and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:

			Delaware Tax-Free		Delaware Minnesota
	Delaware Tax-Free		Minnesota		High-Yield Municipal
	Minnesota Fund		Intermediate Fund		Bond Fund
Class A	$	0	$	0	$	3,125
Class B		358		0		652
Class C		592		284		1,295

Trustees’ fees include expenses accrued by the Funds for each Trustee’s retainer and meeting fees. Certain officers of DMC, DSC and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.

3. Investments

For the year ended August 31, 2012, the Funds made purchases and sales of investment securities other than short-term investments as follows:

			Delaware Tax-Free		Delaware Minnesota
	Delaware Tax-Free		Minnesota		High-Yield Municipal
	Minnesota Fund		Intermediate Fund		Bond Fund
Purchases	$	113,707,693	$	33,119,107	$	35,222,578
Sales		92,783,822		22,504,384		19,105,735

At August 31, 2012, the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes for each Fund were as follows:

				Delaware Tax-Free			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Cost of investments	$	569,187,915		$	105,255,165			$	150,862,894
Aggregate unrealized appreciation	$	51,867,627		$	8,280,897			$	10,016,382
Aggregate unrealized depreciation		(20,100	)		(30,704	)			(222,655	)
Net unrealized appreciation	$	51,847,527		$	8,250,193			$	9,793,727

U.S. GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market

Notes to financial statements
Delaware Investments^® Minnesota Municipal Bond Funds

3. Investments (continued)

participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1 –
inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, exchange-traded options contracts)

Level 2 –
other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

Level 3 –
inputs are significant unobservable inputs (including each Fund’s own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

Level 3 investments are valued using significant unobservable inputs, including related or comparable assets or liabilities, book values and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following tables summarize the valuation of the each Fund’s investments by fair value hierarchy levels as of August 31, 2012:

	Delaware Tax-Free Minnesota Fund
	Level 2
Municipal Bonds		$	619,070,442
Short-Term Investments			1,965,000
Total		$	621,035,442

	Delaware Tax-Free Minnesota Intermediate Fund
			Level 2
Municipal Bonds			$	113,505,358

	Delaware Minnesota High-Yield Municipal Bond Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	159,227,092	$	159,227,092
Short-Term Investments		429,529		1,000,000		1,429,529
Total	$	429,529	$	160,227,092	$	160,656,621

During the year ended August 31, 2012, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Funds. Each Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.

4. Dividend and Distribution Information

Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Additionally, distributions from net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the years ended August 31, 2012 and 2011 was as follows:

				Delaware Tax-Free			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Year Ended 8/31/12
Ordinary income		$	99,433		$	3,837		$	83,396
Tax-exempt income			22,376,736			3,248,342			5,495,222
Long-term capital gain			5,011,160			—			—
Total		$	27,487,329		$	3,252,179		$	5,578,618

Year Ended 8/31/11
Ordinary income		$	1,050,612		$	10,335		$	9,171
Tax-exempt income			23,194,282			3,401,774			5,665,065
Long-term capital gain			1,575,686			—			—
Total		$	25,820,580		$	3,412,109		$	5,674,236

Notes to financial statements
Delaware Investments^® Minnesota Municipal Bond Funds

5. Components of Net Assets on a Tax Basis

As of August 31, 2012, the components of net assets on a tax basis were as follows:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Shares of beneficial interest		$	565,231,623			$	105,093,096			$	153,706,617
Distributions payable			(537,798	)			(77,922	)			(138,127	)
Undistributed ordinary income			548,251				—				—
Undistributed long-term capital gains			3,067,479				23,292				—
Undistributed tax-exempt income			386,802				80,444				138,127
Capital loss carryforwards			—				—				(3,404,628	)
Qualified late year losses deferred			—				—				(18,352	)
Unrealized appreciation of investments			51,847,527				8,250,193				9,793,727
Net assets		$	620,543,884			$	113,369,103			$	160,077,364

The differences between book basis and tax basis components of net assets are primarily attributable to tax treatment of market discount and premium on debt instruments and distributions payable.

Qualified late year losses represent losses realized on investment transactions from November 1, 2011 through August 31, 2012 that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on certain debt instruments and capital loss carryforwards expired. Results of operations and net assets were not affected by these reclassifications. For the year ended August 31, 2012 the Funds recorded the following reclassifications:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Paid-in capital		$	—			$	—			$	(25,904	)
Undistributed (Distributions in excess of)
net investment income			68,506				3,523				75,369
Accumulated net realized gain (loss)			(68,506	)			(3,523	)			(49,465	)

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. $25,904 expired in 2012 for Delaware Minnesota High- Yield Municipal Bond Fund. In 2012, the Funds utilized capital loss carryforwards as follows:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$—	$517,048	$—

Capital loss carryforwards remaining at August 31, 2012 will expire as follows:

			Delaware Tax-Free		Delaware Minnesota
	Delaware Tax-Free		Minnesota		High-Yield Municipal
Year of Expiration	Minnesota Fund		Intermediate Fund		Bond Fund
2015		$—		$—		$ 96,079
2016		—		—		198,826
2017		—		—		129,724
2018		—		—		2,974,512
Total		$—		$—		$3,399,141

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (Act) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation. Losses incurred that will be carried forward under the Act are as follows:

		Delaware Minnesota
		High-Yield Municipal
		Bond Fund
Long-term		$5,487

Notes to financial statements
Delaware Investments^® Minnesota Municipal Bond Funds

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware				Delaware Tax-Free				Delaware Minnesota
	Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
	Year Ended				Year Ended				Year Ended
	8/31/12		8/31/11		8/31/12		8/31/11		8/31/12		8/31/11
Shares sold:
Class A	3,091,804		2,784,944		1,383,234		1,278,854		1,931,325		1,315,787
Class B	36		9		—		—		18		70
Class C	632,910		389,789		345,207		233,759		651,422		355,964

Shares issued upon reinvestment of dividends and distributions:
Class A	1,504,779		1,346,957		194,658		182,978		304,071		289,772
Class B	6,665		10,683		262		339		6,170		9,606
Class C	98,132		88,175		24,905		25,813		72,228		71,925
	5,334,326		4,620,557		1,948,266		1,721,743		2,965,234		2,043,124

Shares redeemed:
Class A	(3,426,551	)	(7,071,017	)	(1,061,511	)	(2,115,142	)	(1,349,135	)	(2,349,386	)
Class B	(140,567	)	(282,324	)	(1,396	)	(3,322	)	(107,644	)	(119,593	)
Class C	(315,576	)	(779,160	)	(217,764	)	(303,643	)	(253,002	)	(563,750	)
	(3,882,694	)	(8,132,501	)	(1,280,671	)	(2,422,107	)	(1,709,781	)	(3,032,729	)
Net increase (decrease)	1,451,632		(3,511,944	)	667,595		(700,364	)	1,255,453		(989,605	)

For the years ended August 31, 2012 and 2011, the following shares and values were converted from Class B shares to Class A shares. The amounts are included in Class B redemptions and Class A subscriptions in the tables on the previous page and the statements of changes in net assets.

	Year Ended				Year Ended
	8/31/12				8/31/11
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
Minnesota Fund	100,968	101,119	$	1,278,778	175,162	175,266	$	2,154,184
Delaware Tax-Free Minnesota
Intermediate Fund	132	133		1,499	1,576	1,580		17,494
Delaware Minnesota High-Yield
Municipal Bond Fund	30,819	30,882		330,849	46,556	46,619		480,052

7. Line of Credit

Each Fund, along with certain other funds in the Delaware Investments^® Family of Funds (Participants), was a participant in a $100,000,000 revolving line of credit to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Under the agreement, the Participants were charged an annual commitment fee, which was allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants were permitted to borrow up to a maximum of one third of their net assets under the agreement. The line of credit under the agreement expired on November 15, 2011.

On November 15, 2011, the Funds, along with the other Participants, entered into an amendment to the agreement for a $125,000,000 revolving line of credit. The agreement is to be used as described above and operates in substantially the same manner as the original agreement. The agreement expires on November 13, 2012. The Funds had no amounts outstanding as of August 31, 2012 or at any time during the year then ended.

8. Derivatives

U.S. GAAP requires disclosures that enable investors to understand: 1) how and why an entity uses derivatives; 2) how they are accounted for; and 3) how they affect an entity’s results of operations and financial position.

Inverse Floaters — Each Fund may participate in inverse floater programs where a Fund transfers its own bonds to a trust that issues floating rate securities and inverse floating rate securities (inverse floaters) with an aggregate principal amount equal to the principal of the transferred bonds. The inverse floaters received by the Funds are derivative tax-exempt obligations with floating or variable interest rates that move in the opposite direction of short-term interest rates, usually at an accelerated speed. Consequently, the market values of the inverse floaters will generally be more volatile than other tax-exempt investments. The Funds typically use inverse floaters to adjust the duration of their portfolio. Duration measures a portfolio’s sensitivity to changes in interest rates. By holding inverse floaters with a different duration than the underlying bonds that a Fund transferred to the trust, the Fund seeks to adjust its portfolio’s sensitivity to changes in interest rates. The Funds may also invest in inverse floaters to add additional income to the Funds or to adjust the Funds’ exposure to a specific segment of the yield curve. At August 31, 2012, the Funds held no investments in inverse floaters.

9. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities, mainly in Minnesota. The value of these investments may be adversely affected by new legislation within the state, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of

Notes to financial statements
Delaware Investments^® Minnesota Municipal Bond Funds

9. Credit and Market Risk (continued)

a bond insurer can have an adverse impact on the value of insured bonds held in each Fund. At August 31, 2012, the percentages of each Fund’s net assets insured by insurers are listed below and these securities have been identified in the statements of net assets.

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
14%	14%	10%

Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s (S&P) and Baa3 by Moody’s Investors Service, Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment-grade securities.

The Funds may invest in advance refunded bonds, escrow secured bonds or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” Advance refunded bonds are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest bearing debt securities, which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.

Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract and are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.

Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Fund’s Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. As of August 31, 2012, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

10. Contractual Obligations

The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.

11. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to August 31, 2012 that would require recognition or disclosure in the Funds’ financial statements.

Report of independent
registered public accounting firm

To the Board of Trustees of Voyageur Tax Free Funds, Voyageur Intermediate Tax Free Funds and Voyageur Mutual Funds and the Shareholders of Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund:

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Delaware Tax-Free Minnesota Fund (constituting Voyageur Tax Free Funds), Delaware Tax-Free Minnesota Intermediate Fund (constituting Voyageur Intermediate Tax Free Funds) and Delaware Minnesota High-Yield Municipal Bond Fund (one of the series constituting Voyageur Mutual Funds) (hereafter collectively referred to as the “Funds”) at August 31, 2012, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2012 by correspondence with the custodian and broker, provide a reasonable basis for our opinion. The financial highlights for each of the two years in the period ended August 31, 2009 were audited by other independent accountants whose report dated October 19, 2009 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 18, 2012

Other Fund information
(Unaudited)
Delaware Investments^® Minnesota Municipal Bond Funds

Board Consideration of Delaware Minnesota High-Yield Municipal Bond Fund, Delaware Tax-Free Minnesota Fund and Delaware Tax-Free Minnesota Intermediate Fund Investment Advisory Agreements

At a meeting held on August 21-23, 2012 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreement for each of the Delaware Minnesota High-Yield Municipal Bond Fund, Delaware Tax-Free Minnesota Fund and Delaware Tax-Free Minnesota Intermediate Fund (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Advisory Agreements with Delaware Management Company (“DMC”) included materials provided by DMC and its affiliates (“Delaware Investments”) concerning, among other things, the nature, extent and quality of services provided to the Funds, the costs of such services to the Funds, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided in May 2012 and included independent historical and comparative reports provided by Lipper, Inc., an independent statistical compilation organization (“Lipper”). The Lipper reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Lipper reports with independent legal counsel to the Independent Trustees. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; comparative client fee information; and any constraints or limitations on the availability of securities in certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, DMC’s ability to invest fully in accordance with Fund policies.

In considering information relating to the approval of each Fund’s advisory agreement, the Independent Trustees received assistance and advice from and met separately with independent legal counsel to the Independent Trustees. Although the Board gave attention to all information furnished, the following discussion identifies, under separate headings, the primary factors taken into account by the Board during its contract renewal considerations.

Nature, Extent and Quality of Service. The Board considered the services provided by Delaware Investments to the Funds and their shareholders. In reviewing the nature, extent and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of the Funds, compliance of portfolio managers with the investment policies, strategies and restrictions for the Funds, compliance by DMC and Delaware Distributors, L.P. (together, “Management”) personnel with the Code of Ethics adopted throughout the Delaware Investments Family of Funds complex and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of

Other Fund information
(Unaudited)
Delaware Investments^® Minnesota Municipal Bond Funds

Board Consideration of Delaware Minnesota High-Yield Municipal Bond Fund, Delaware Tax-Free Minnesota Fund and Delaware Tax-Free Minnesota Intermediate Fund Investment Advisory Agreements (continued)

the Funds’ investment advisor and the emphasis placed on research in the investment process. The Board recognized DMC’s receipt of several industry awards, including being named best fund family for 2011 by Barron’s and best mixed asset small company by Lipper for the second year in a row. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to fund matters. The Board noted that in July 2011 Management implemented measures to reduce overall costs and improve transfer agent and shareholder servicing functions through outsourcing. The Board noted the benefits provided to Fund shareholders through each shareholder’s ability to exchange an investment in one Delaware Investments fund for the same class of shares in another Delaware Investments fund without a sales charge, to reinvest Fund dividends into additional shares of the same Fund or into additional shares of other Delaware Investments funds and the privilege to combine holdings in other Delaware Investments funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

Investment Performance. The Board placed significant emphasis on the investment performance of the Funds in view of the importance of investment performance to shareholders. Although the Board gave appropriate consideration to performance reports and discussions with portfolio managers at Investment Committee meetings throughout the year, the Board gave particular weight to the Lipper reports furnished for the Annual Meeting. The Lipper reports prepared for each Fund showed the investment performance of its Class A shares in comparison to a group of similar funds as selected by Lipper (the “Performance Universe”). A fund with the best performance ranked first, and a fund with the poorest performance ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the poorest/ worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for each Fund was shown for the past one-, three-, five- and ten-year periods, as applicable, ended March 31, 2012. The Board’s objective is that each Fund’s performance for the periods considered be at or above the median of its Performance Universe. The following paragraphs summarize the performance results for the Funds and the Board’s view of such performance.

Delaware Minnesota High-Yield Municipal Bond Fund — Lipper currently classifies the Fund as a Minnesota municipal debt fund. However, Management believes that it would be more appropriate to include the Fund in the high yield municipal debt funds category, which would provide a comparison to a representative peer group based on credit quality instead of a peer group based on state of issuance. Accordingly, the Lipper report prepared for the Fund compares the Fund’s performance to two separate Performance Universes-one consisting of the Fund and all retail and institutional Minnesota municipal debt funds and the other consisting of the Fund and all retail and institutional high yield municipal debt funds. When compared to other Minnesota

municipal debt funds, the Lipper report comparison showed that the Fund’s total return for the one-, three- and ten-year periods was in the first quartile of its Performance Universe and the Fund’s total return for the five-year period was in the second quartile. When compared to other high yield municipal debt funds, the Lipper report comparison showed that the Fund’s total return for the one- and three-year periods was in the fourth quartile of the Performance Universe and the Fund’s total return for the five- and ten-year periods was in the first quartile. The Board observed that, when compared to other high yield municipal debt funds, the Fund’s shorter-term performance results were not in line with the Board’s objective. In evaluating the Fund’s performance, the Board considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking action to improve Fund performance and meet the Board’s performance objective.

Delaware Tax-Free Minnesota Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional Minnesota municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one- and three-year periods was in the second quartile of its Performance Universe. The report further showed that the Fund’s total return for the five- and ten-year periods was in the first quartile. The Board was satisfied with performance.

Delaware Tax-Free Minnesota Intermediate Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional other state intermediate municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one- and ten-year periods was in the first quartile of its Performance Universe. The report further showed that the Fund’s total return for the three- and five-year periods was in the second quartile. The Board was satisfied with performance.

Comparative Expenses. The Board considered expense comparison data for the Delaware Investments^® Family of Funds. Management provided the Board with information on pricing levels and fee structures for each Fund as of its most recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of each Fund versus effective management fees and expense ratios of a group of similar funds as selected by Lipper (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) within the Expense Group, taking into account any applicable breakpoints and fee waivers. Each Fund’s total expenses were also compared with those of its Expense Group. The Lipper total expenses, for comparative consistency, were shown by Lipper for Class A shares and comparative total expenses including 12b-1 and non 12b-1 service fees. The Board considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit each Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraphs summarize the expense results for the Funds and the Board’s view of such expenses.

Other Fund information
(Unaudited)
Delaware Investments^® Minnesota Municipal Bond Funds

Delaware Minnesota High-Yield Municipal Bond Fund — When compared to other Minnesota municipal debt funds, the expense comparisons for the Fund showed that its actual management fee was in the quartile with the second highest expenses of the Expense Group and its total expenses were in the quartile with the highest expenses of the Expense Group. When compared to other high yield municipal debt funds, the expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of the Expense. The Board noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2012 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in total expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

Delaware Tax-Free Minnesota Fund — The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second highest expenses of its Expense Group and its total expenses were in the quartile with the highest expenses of its Expense Group. The Board noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered waivers in place through December 2012 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

Delaware Tax-Free Minnesota Intermediate Fund - The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the second highest expenses of its Expense Group. The Board noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered waivers in place through December 2012 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

recent operational cost savings and efficiencies initiated by Delaware Investments. The Board considered Delaware Investments’ efforts to improve services provided to fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide Securities and Exchange Commission initiatives. The Board also considered the extent to which Delaware Investments might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Investments^® Family of Funds and the benefits from allocation of fund brokerage to improve trading efficiencies. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of Delaware Investments.

Economies of Scale. The Trustees considered whether economies of scale are realized by Delaware Investments as each Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed the standardized advisory fee pricing and structure, approved by the Board and shareholders, which includes breakpoints. Breakpoints in the advisory fee occur when the advisory fee rate is reduced on assets in excess of specified levels. Breakpoints result in a lower advisory fee than would otherwise be the case on all assets when the asset levels specified are exceeded. The Board noted that the fee under each Fund’s management contract fell within the standard structure. Although the Delaware Minnesota High-Yield Municipal Bond Fund and Delaware Tax-Free Minnesota Intermediate Fund have not reached a size at which they can take advantage of breakpoints, the Board recognized that each Fund’s fee was structured so that when the Fund grows, economies of scale may be shared. The Board also noted that the Delaware Tax-Free Minnesota Fund’s assets exceeded the first breakpoint level. The Board believed that, given the extent to which economics of scale might be realized by the advisor and its affiliates, the schedule of fees under the Investment Advisory Agreement provides a sharing of benefits with the Fund and its shareholders.

Tax Information

The information set forth below is for the Funds’ fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of a fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.

All designations are based on financial information available as of the date of this annual report and, accordingly are subject to change. For any and all items requiring designation, it is the intention of each Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

Other Fund information
(Unaudited)
Delaware Investments^® Minnesota Municipal Bond Funds

Tax Information (continued)

For the fiscal year ended August 31, 2012, each Fund designates distributions paid during the year as follows:

	(A)		(B)	(C)
	Long-Term		Ordinary	Tax-Exempt
	Capital Gain		Income	Income	Total
	Distributions		Distributions	Distributions	Distributions
	(Tax Basis)		(Tax Basis)	(Tax Basis)	(Tax Basis)
Delaware Tax-Free Minnesota Fund	18.23	%	0.36%	81.41%	100.00%
Delaware Tax-Free Minnesota
Intermediate Fund	—		0.12%	99.88%	100.00%
Delaware Minnesota High-Yield
Municipal Bond Fund	—		1.50%	98.50%	100.00%

(A), (B) and (C) are based on a percentage of each Fund’s total distributions.

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

A mutual fund is governed by a Board of Trustees/Directors (“Trustees”), which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor, and others who perform services for the fund. The independent fund trustees, in particular, are advocates

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Interested Trustees

Patrick P. Coyne1	Chairman, President,	Chairman and Trustee
2005 Market Street	Chief Executive Officer,	since August 16, 2006
Philadelphia, PA 19103	and Trustee
April 1963		President and
		Chief Executive Officer
		since August 1, 2006

¹ Patrick P. Coyne is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.

for shareholder interests. Each trustee has served in that capacity since he or she was elected to or appointed to the Board of Trustees, and will continue to serve until his or her retirement or the election of a new trustee in his or her place. The following is a list of the Trustees and Officers with certain background and related information.

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Patrick P. Coyne has served in	71	Director and Audit
various executive capacities		Committee Member
at different times at		Kaydon Corp.
Delaware Investments.²
		Board of Governors Member
		Investment Company
		Institute (ICI)

²Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor, principal underwriter, and its transfer agent.

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees

Thomas L. Bennett	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
October 1947

John A. Fry	Trustee	Since January 2001
2005 Market Street
Philadelphia, PA 19103
May 1960











Anthony D. Knerr	Trustee	Since April 1990
2005 Market Street
Philadelphia, PA 19103
December 1938

Lucinda S. Landreth	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
June 1947

100

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Private Investor	71	Director
(March 2004–Present)		Bryn Mawr Bank Corp. (BMTC)
		(2007–2011)


President	71	Board of Governors Member —
Drexel University		NASDAQ OMX PHLX LLC
(August 2010–Present)
		Director and Audit
President		Committee Member
Franklin & Marshall College		Community Health Systems
(July 2002–July 2010)
		Director — Ecore
		International
		(2009–2010)

		Director — Allied
		Barton Securities Holdings
		(2005–2008)

Managing Director	71	None
Anthony Knerr & Associates
(Strategic Consulting)
(1990–Present)

Private Investor	71	None
(2004–Present)

101

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)

Frances A. Sevilla-Sacasa	Trustee	Since September 2011
2005 Market Street
Philadelphia, PA 19103
January 1956

102

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Chief Executive Officer —	71	Trust Manager — Camden
Banco Itaú Europa		Property Trust
International		(since August 2011)
(since April 2012)

Executive Advisor to Dean
(August 2011–March 2012)
and Interim Dean
(January 2011–July 2011) —
University of Miami School of
Business Administration

President — U.S. Trust,
Bank of America Private
Wealth Management
(Private Banking)
(July 2007–December 2008)

103

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)

Janet L. Yeomans	Trustee	Since April 1999
2005 Market Street
Philadelphia, PA 19103
July 1948







J. Richard Zecher	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
July 1940

104

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Vice President and Treasurer	71	Director, Audit
(January 2006–July 2012)		Committee Member and
Vice President — Mergers & Acquisitions		Investment Committee
(January 2003–January 2006), and		Member
Vice President and Treasurer		Okabena Company
(July 1995–January 2003)
3M Corporation		Chair — 3M
		Investment Management
		Company
		(January 2005–July 2012)

Founder	71	Director and Compensation
Investor Analytics		Committee Member
(Risk Management)		Investor Analytics
(May 1999–Present)
		Director
Founder		Oxigene, Inc.
P/E Investments		(2003–2008)
(Hedge Fund)
(September 1996–Present)

105

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Officers

David F. Connor	Vice President,	Vice President since
2005 Market Street	Deputy General	September 2000
Philadelphia, PA 19103	Counsel, and Secretary	and Secretary since
December 1963		October 2005


Daniel V. Geatens	Vice President	Treasurer
2005 Market Street	and Treasurer	since October 2007
Philadelphia, PA 19103
October 1972

David P. O’Connor	Executive Vice President,	Executive Vice President
2005 Market Street	General Counsel	since February 2012;
Philadelphia, PA 19103	and Chief Legal Officer	Senior Vice President
February 1966		October 2005–
		February 2012;
		General Counsel and
		Chief Legal Officer
		since October 2005

Richard Salus	Senior Vice President	Chief Financial Officer
2005 Market Street	and Chief Financial Officer	since November 2006
Philadelphia, PA 19103
October 1963

The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 523-1918.

106

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


David F. Connor has served as	71	None³
Vice President and Deputy
General Counsel of
Delaware Investments
since 2000.

Daniel V. Geatens has served	71	None³
in various capacities at
different times at
Delaware Investments.

David P. O’Connor has served in	71	None³
various executive and legal
capacities at different times
at Delaware Investments.





Richard Salus has served in	71	None³
various executive capacities
at different times at
Delaware Investments.

³David F. Connor, Daniel V. Geatens, David P. O’Connor, and Richard Salus serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor, principal underwriter, and transfer agent as the registrant.

107

About the organization

Board of trustees
Patrick P. Coyne Chairman, President, and Chief Executive Officer Delaware Investments® Family of Funds Philadelphia, PA Thomas L. Bennett Private Investor Rosemont, PA	John A. Fry President Drexel University Philadelphia, PA Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY	Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA Frances A. Sevilla-Sacasa Chief Executive Officer Banco Itaú Europa International Miami, FL	Janet L. Yeomans Former Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ

Affiliated officers
David F. Connor Vice President, Deputy General Counsel, and Secretary Delaware Investments Family of Funds Philadelphia, PA	Daniel V. Geatens Vice President and Treasurer Delaware Investments Family of Funds Philadelphia, PA	David P. O’Connor Executive Vice President, General Counsel, and Chief Legal Officer Delaware Investments Family of Funds Philadelphia, PA	Richard Salus Senior Vice President and Chief Financial Officer Delaware Investments Family of Funds Philadelphia, PA

This annual report is for the information of Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawareinvestments.com.

Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.

Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. Each Fund’s Forms N-Q, as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities and each Fund’s Schedule of Investments are available without charge on the Funds’ website at delawareinvestments.com. Each Fund’s Forms N-Q 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 800 SEC-0330.

Information (if any) regarding how each Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at delawareinvestments.com; and (ii) on the SEC’s website at sec.gov.

108

Annual report

Delaware Tax-Free USA Fund
Delaware Tax-Free USA Intermediate Fund
Delaware National High-Yield Municipal Bond Fund

August 31, 2012

Fixed income mutual funds

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectuses and, if available, their summary prospectuses, which may be obtained by visiting delawareinvestments.com or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.

You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit delawareinvestments.com/edelivery.

Experience Delaware Investments

If you are interested in learning more about creating an investment plan, contact your financial advisor.

You can learn more about Delaware Investments or obtain a prospectus for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund at delawareinvestments.com.

Manage your investments online

24-hour access to your account information
Obtain share prices
Check your account balance and recent transactions
Request statements or literature
Make purchases and redemptions

Investments in Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

Table of contents
Portfolio management review	1
Performance summaries	5
Disclosure of Fund expenses	14
Security type/sector allocations	17
Statements of net assets	20
Statements of operations	67
Statements of changes in net assets	68
Financial highlights	74
Notes to financial statements	98
Report of independent registered
public accounting firm	111
Other Fund information	112
Board of trustees/directors and
officers addendum	118
About the organization	128

Unless otherwise noted, views expressed herein are current as of Aug. 31, 2012, and subject to change.

Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.

All third-party marks cited are the property of their respective owners.

Portfolio management review

Delaware Investments^®National Tax-Free Funds

September 11, 2012

Performance preview (for the year ended August 31, 2012)
Delaware Tax-Free USA Fund (Class A shares)	1-year return	+13.01%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78%
Lipper General & Insured Municipal Debt Funds Average	1-year return	+11.00%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free USA Fund, please see the table on page 5.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions. The Lipper General & Insured Municipal Debt Funds Average compares funds that either invest primarily in municipal debt issues in the top four credit ratings or invest primarily in municipal debt issues insured as to timely payment. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware Tax-Free USA Intermediate Fund (Class A shares)	1-year return	+7.89%
Barclays 3–15 Year Blend Municipal Bond Index (benchmark)	1-year return	+6.84%
Lipper Intermediate Municipal Debt Funds Average	1-year return	+6.57%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free USA Intermediate Fund, please see the table on page 8. The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions. The Lipper Intermediate Municipal Debt Funds Average compares funds that invest in municipal debt issues with dollar-weighted average maturities of 5 to 10 years.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware National High-Yield Municipal Bond Fund (Class A shares)	1-year return	+17.28%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78%
Lipper High-Yield Municipal Debt Funds Average	1-year return	+14.98%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware National High-Yield Municipal Bond Fund, please see the table on page 11.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions. The Lipper High-Yield Municipal Debt Funds Average compares funds that invest at least 50% of assets in lower-rated municipal debt issues.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Portfolio management review
Delaware Investments^® National Tax-Free Funds

Economic backdrop

By the second half of the Funds’ fiscal year, however, it became clear that the economy’s momentum was stalling:

U.S. gross domestic product (GDP) — a measure of the goods and services produced by the nation — grew at an annualized rate of just 2.0% in the first quarter of 2012, down from 4.1% in the previous three-month period. In the second quarter of 2012, the rate of GDP growth slowed further, to an estimated 1.7%.
Job creation remained persistently sluggish, as the unemployment rate fluctuated within a historically high range of 8.1% to 8.3% between January and August 2012.
(Data: U.S. Commerce Department, U.S. Labor Department)

Although individual localities around the country continued to experience fiscal struggles, we did not view this as an indication of deeply rooted risk in the municipal bond market as a whole. Instead, we saw isolated cases of municipalities dealing with specific challenges unique to their circumstances (such as underfunded pension plans or weak revenue streams). Outside the United States, elevated debt levels in several European countries — most notably Greece, Spain, and Italy — continued to foster the region’s economic volatility. European policy makers hoped to avoid the worst-case scenario of a breakup of the shared euro currency, which would likely result in a massive disruption to the global economy. As the Funds’ fiscal year progressed, it appeared that a tentative framework for resolution was in place, but financial markets remained highly sensitive to the uncertainty of a successful ending to this fiscal crisis.

Municipal bond market conditions

The Funds’ fiscal year coincided with a beneficial environment for many municipal bond investors. Amid the sluggish U.S. economic backdrop and potential fallout from the European debt situation, yields on U.S. Treasury debt stayed dramatically low. Investors therefore looked elsewhere for sources of competitive yield, and municipal bonds benefited from this attention.

Another factor underlying the demand for municipal securities was investors’ search for a higher yield amid a low interest rate environment. Accordingly, bonds that exhibited higher yields, including those with longer maturities and lower credit ratings, generally outperformed their counterparts. In fact, the best-performing maturity range of the municipal bond market (as measured by the Barclays Municipal Bond Index) was 22 years and longer, which gained 14.52%, compared with an advance of just 0.89% for bonds with maturities of less than two years. Similarly, BBB-rated bonds were up 15.40% for the same time period, compared with a gain of just 6.07% for the AAA segment within that index.

Maintaining a consistent strategy

Our comfort level with the Funds’ elevated weighting in relatively credit-sensitive securities stems from the thoroughness of our credit research process and our confidence in our ability to identify tax-exempt securities that offer a positive risk-versus-reward tradeoff.

One noteworthy source of bond supply during the Funds’ fiscal year was Puerto Rico, and in late 2011 we added a number of Puerto Rican bonds that we believed were priced attractively. With a large amount of Puerto Rican issuance coming to market in a relatively short time period, we followed our rigorous research process in identifying what we believed to be meaningful additions to each Fund’s portfolio.

Notable sectors and securities

The outperformance of lower-rated bonds proved favorable for our style of investing. Looking at the strongest individual contributors to each of the Funds’ results, we note that they are representative of the trend in which long-dated, lower-credit-quality issues enjoyed a performance advantage.

Portfolio management review
Delaware Investments^® National Tax-Free Funds

Among the strongest-performing securities within Delaware Tax-Free USA Fund were Florida revenue bonds issued for Fort Lauderdale cargo acquisition projects. These bonds had a 2032 maturity date and a Moody’s Investors Service (Moody’s) credit rating of Ba2. Another notable contributor was an Ohio nonrated bond issued for senior-housing facilities, with a 2038 maturity date. Both of these bonds experienced significant price increases in tandem with what we saw as investors’ increased tolerance for credit risk.

On the other hand, the Fund’s relatively weaker holdings included Greene County, Mo., single-family mortgage bonds, which were rated Aaa by Moody’s and were set to mature in 2016. Other relative laggards included Ohio general obligation bonds with a December 2012 maturity.

Within Delaware Tax-Free USA Intermediate Fund, strong performers included the same Florida cargo acquisition bonds mentioned earlier. Another outperforming issue was a Modesto, Calif., special taxing district bond maturing in 2036.

In contrast, bonds with relatively weaker performance included Duluth, Minn., healthcare bonds that had a maturity date of 2014, and Pennsylvania general obligation bonds maturing in May 2013. Both of these securities turned in positive performance, but they trailed the stronger advance posted by longer-dated bonds.

The story was similar for Delaware National High-Yield Municipal Bond Fund, as its two top contributing securities were the same as those mentioned above for Delaware Tax-Free USA Fund. In contrast, New York State Dormitory Authority personal income tax revenue bonds (maturing in 2024) and Massachusetts State Development Finance Agency revenue bonds for Harvard University (maturing in 2020) were among those that posted relatively weaker gains within the Fund’s portfolio holdings.

Performance summaries

Delaware Tax-Free USA Fund

August 31, 2012

Fund performance^1,2	Average annual total returns through August 31, 2012
		1 year	5 years	10 years	Lifetime
Class A (Est. Jan. 11, 1984)
Excluding sales charge		+13.01%	+6.33%	+5.35%	n/a
Including sales charge		+7.95%	+5.35%	+4.87%	n/a
Class B (Est. May 2, 1994)
Excluding sales charge		+12.27%	+5.53%	+4.70%	n/a
Including sales charge		+8.27%	+5.29%	+4.70%	n/a
Class C (Est. Nov. 29, 1995)
Excluding sales charge		+12.26%	+5.53%	+4.56%	n/a
Including sales charge		+11.26%	+5.53%	+4.56%	n/a
Institutional Class (Est. Dec. 31, 2008)
Excluding sales charge		+13.41%	n/a	n/a	+10.89%
Including sales charge		+13.41%	n/a	n/a	+10.89%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Class A shares are sold with a maximum front-end sales charge of 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets. The Board of Trustees (Board) has adopted a formula for calculating 12b-1 plan fees for the Fund’s Class A shares that went into effect on June 1, 1992. The Fund’s Class A shares are currently subject to a blended 12b-1 fee equal to the sum of: (i) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (ii) 0.25% of average daily net assets representing shares acquired on or after June 1, 1992. All Class A shares currently bear 12b-1 fees at the same rate, the blended rate, currently 0.24% of average daily net assets, based on the formula described above. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board. Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.

Performance summaries
Delaware Tax-Free USA Fund

and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Ten-year and lifetime performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Institutional Class shares are available without sales or asset-based distribution charges only to certain eligible institutional accounts.

Bond ratings are determined by a nationally recognized statistical rating organization.

²The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.56% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C	Institutional Class
Total annual operating expenses	0.94%	1.70%	1.70%	0.70%
(without fee waivers)
Net expenses	0.80%	1.56%	1.56%	0.56%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual	Contractual

Performance of a $10,000 investment¹

Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012 Starting value Ending value

Barclays Municipal Bond Index $10,000 $16,596

Delaware Tax-Free USA Fund — Class A shares $9,550 $16,075

¹ The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 6. Please note additional details on pages 5 through 7.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		DMTFX	245909106
Class B		DTFCX	245909403
Class C		DUSCX	245909700
Institutional Class		DTFIX	24610H104

Performance summaries
Delaware Tax-Free USA Intermediate Fund	August 31, 2012

Fund performance^1,2	Average annual total returns through August 31, 2012
	1 year	5 years	10 years	Lifetime
Class A (Est. Jan. 7, 1993)
Excluding sales charge	+7.89%	+5.52%	+4.81%	n/a
Including sales charge	+4.88%	+4.93%	+4.52%	n/a
Class B (Est. May 2, 1994)
Excluding sales charge	+6.90%	+4.63%	+4.35%	n/a
Including sales charge	+4.90%	+4.63%	+4.35%	n/a
Class C (Est. Nov. 29, 1995)
Excluding sales charge	+6.89%	+4.64%	+3.92%	n/a
Including sales charge	+5.89%	+4.64%	+3.92%	n/a
Institutional Class (Est. Dec. 31, 2008)
Excluding sales charge	+8.00%	n/a	n/a	+7.75%
Including sales charge	+8.00%	n/a	n/a	+7.75%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 9. Performance would have been lower had expense limitations not been in effect.

Class A shares are sold with a maximum front-end sales charge of 2.75%, and have an annual distribution and service fee of 0.30% of average daily net assets. This fee has been contractually limited to 0.15% of average daily net assets from Dec. 29, 2011, through Dec. 28, 2012.

Performance for Class A shares, excluding sales charges, assumes that no front-end sales charge applied.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B shares. Class B shares have a contingent deferred sales charge that declines from 2.00% to zero depending on the period of time the shares are held. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately five years after purchase. Ten-year and lifetime performance figures for Class B shares reflect conversion to Class A shares after approximately five years.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Institutional Class shares are available without sales or asset-based distribution charges only to certain eligible institutional accounts.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.60% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C	Institutional Class
Total annual operating expenses	0.98%	1.68%	1.68%	0.68%
(without fee waivers)
Net expenses	0.75%	1.60%	1.60%	0.60%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual	Contractual

Performance summaries
Delaware Tax-Free USA Intermediate Fund

Performance of a $10,000 investment¹
Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value		Ending value
	Barclays 3–15 Year Blend Municipal Bond Index		$10,000	$16,321
	Delaware Tax-Free USA
	Intermediate Fund — Class A shares		$9,725	$15,544

¹ The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 2.75% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 9. Please note additional details on pages 8 through 10.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		DMUSX	245909304
Class B		DUIBX	245909601
Class C		DUICX	245909882
Institutional Class		DUSIX	24610H203

Delaware National High-Yield Municipal Bond Fund

August 31, 2012

Fund performance^1,2	Average annual total returns through August 31, 2012
	1 year	5 years	10 years	Lifetime
Class A (Est. Sept. 22, 1986)
Excluding sales charge	+17.28%	+6.83%	+6.01%	n/a
Including sales charge	+12.04%	+5.86%	+5.52%	n/a
Class B (Est. Dec. 18, 1996)
Excluding sales charge	+16.39%	+6.03%	+5.35%	n/a
Including sales charge	+12.39%	+5.79%	+5.35%	n/a
Class C (Est. May 26, 1997)
Excluding sales charge	+16.47%	+6.04%	+5.21%	n/a
Including sales charge	+15.47%	+6.04%	+5.21%	n/a
Institutional Class (Est. Dec. 31, 2008)
Excluding sales charge	+17.57%	n/a	n/a	+16.37	%
Including sales charge	+17.57%	n/a	n/a	+16.37	%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 12. Performance would have been lower had expense limitations not been in effect.

Performance summaries
Delaware National High-Yield Municipal Bond Fund

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Institutional Class shares are available without sales or asset-based distribution charges only to certain eligible institutional accounts.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.60% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C	Institutional Class
Total annual operating expenses	1.01%	1.76%	1.76%	0.76%
(without fee waivers)
Net expenses	0.85%	1.60%	1.60%	0.60%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual	Contractual

Performance of a $10,000 investment¹
Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value		Ending value
	Delaware National High-Yield
	Municipal Bond Fund — Class A shares		$9,550	$17,101
	Barclays Municipal Bond Index		$10,000	$16,596

¹ The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 12. Please note additional details on pages 11 through 13.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		CXHYX	928928241
Class B		DVNYX	928928233
Class C		DVHCX	928928225
Institutional Class		DVHIX	24610H302

Disclosure of Fund expenses
For the six-month period from March 1, 2012 to August 31, 2012 (Unaudited)

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from March 1, 2012 to August 31, 2012.

Actual expenses

Hypothetical example for comparison purposes

Delaware Tax-Free USA Fund
Expense analysis of an investment of $1,000

	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	3/1/12	8/31/12	Expense Ratio	3/1/12 to 8/31/12*
Actual Fund return
Class A	$1,000.00	$1,049.70	0.80%	$4.12
Class B	1,000.00	1,045.70	1.56%	8.02
Class C	1,000.00	1,045.70	1.56%	8.02
Institutional Class	1,000.00	1,051.60	0.56%	2.89
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,021.11	0.80%	$4.06
Class B	1,000.00	1,017.29	1.56%	7.91
Class C	1,000.00	1,017.29	1.56%	7.91
Institutional Class	1,000.00	1,022.32	0.56%	2.85

Delaware Tax-Free USA Intermediate Fund
Expense analysis of an investment of $1,000

	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	3/1/12	8/31/12	Expense Ratio	3/1/12 to 8/31/12*
Actual Fund return
Class A	$1,000.00	$1,024.90	0.75%	$3.82
Class B	1,000.00	1,019.80	1.60%	8.12
Class C	1,000.00	1,019.70	1.60%	8.12
Institutional Class	1,000.00	1,025.50	0.60%	3.05
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,021.37	0.75%	$3.81
Class B	1,000.00	1,017.09	1.60%	8.11
Class C	1,000.00	1,017.09	1.60%	8.11
Institutional Class	1,000.00	1,022.12	0.60%	3.05

Disclosure of Fund expenses

Delaware National High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000

	Beginning		Ending			Expenses
	Account Value		Account Value		Annualized	Paid During Period
	3/1/12		8/31/12		Expense Ratio	3/1/12 to 8/31/12*
Actual Fund return
Class A		$1,000.00		$1,075.50	0.85%		$4.43
Class B		1,000.00		1,071.40	1.60%		8.33
Class C		1,000.00		1,072.30	1.60%		8.33
Institutional Class		1,000.00		1,076.40	0.60%		3.13
Hypothetical 5% return (5% return before expenses)
Class A		$1,000.00		$1,020.86	0.85%		$4.32
Class B		1,000.00		1,017.09	1.60%		8.11
Class C		1,000.00		1,017.09	1.60%		8.11
Institutional Class		1,000.00		1,022.12	0.60%		3.05

*“Expenses Paid During Period” are equal to Funds’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

Security type/sector allocations
Delaware Tax-Free USA Fund	As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	99.16	%
Corporate Revenue Bonds	14.41	%
Education Revenue Bonds	11.86	%
Electric Revenue Bonds	3.62	%
Healthcare Revenue Bonds	11.15	%
Housing Revenue Bonds	0.88	%
Lease Revenue Bonds	10.72	%
Local General Obligation Bonds	3.07	%
Pre-Refunded/Escrowed to Maturity Bonds	6.09	%
Special Tax Revenue Bonds	17.14	%
State General Obligation Bonds	7.32	%
Transportation Revenue Bonds	9.31	%
Water & Sewer Revenue Bonds	3.59	%
Short-Term Investments	0.19	%
Total Value of Securities	99.35	%
Receivables and Other Assets Net of Liabilities	0.65	%
Total Net Assets	100.00	%

Security type/sector allocations

Delaware Tax-Free USA Intermediate Fund

As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	99.02	%
Corporate Revenue Bonds	11.52	%
Education Revenue Bonds	7.16	%
Electric Revenue Bonds	2.83	%
Healthcare Revenue Bonds	8.71	%
Housing Revenue Bonds	0.54	%
Lease Revenue Bonds	4.80	%
Local General Obligation Bonds	7.73	%
Pre-Refunded/Escrowed to Maturity Bonds	4.85	%
Resource Recovery Revenue Bond	0.09	%
Special Tax Revenue Bonds	13.93	%
State General Obligation Bonds	16.78	%
Transportation Revenue Bonds	14.75	%
Water & Sewer Revenue Bonds	5.33	%
Short-Term Investments	0.34	%
Total Value of Securities	99.36	%
Receivables and Other Assets Net of Liabilities	0.64	%
Total Net Assets	100.00	%

Delaware National High-Yield Municipal Bond Fund

As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	97.06	%
Corporate Revenue Bonds	21.62	%
Education Revenue Bonds	17.61	%
Electric Revenue Bonds	1.63	%
Healthcare Revenue Bonds	23.62	%
Housing Revenue Bonds	1.14	%
Lease Revenue Bonds	9.95	%
Pre-Refunded Bond	0.25	%
Resource Recovery Revenue Bond	0.25	%
Special Tax Revenue Bonds	8.65	%
State General Obligation Bonds	5.28	%
Transportation Revenue Bonds	6.61	%
Water & Sewer Revenue Bond	0.45	%
Short-Term Investments	2.12	%
Total Value of Securities	99.18	%
Receivables and Other Assets Net of Liabilities	0.82	%
Total Net Assets	100.00	%

Statements of net assets

Delaware Tax-Free USA Fund

August 31, 2012

		Principal amount			Value
Municipal Bonds – 99.16%
Corporate Revenue Bonds – 14.41%
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2
	5.875% 6/1/47		$	11,000,000	$	8,933,759
	6.50% 6/1/47			6,000,000		5,340,660
	Chautauqua County, New York Industrial Development
	Agency (NRG Dunkirk Power Project) 5.875% 4/1/42			2,000,000		2,252,060
	Golden State, California Tobacco Securitization Corporate
	Settlement Revenue Asset-Backed Senior Notes Series A-1
	5.125% 6/1/47			1,000,000		771,240
	5.75% 6/1/47			12,180,000		10,372,852
	Harris County, Texas Industrial Development Corporation
	Solid Waste Disposal Revenue
	(Deer Park Refining Project) 5.00% 2/1/23			2,955,000		3,290,718
	Illinois Railsplitter Tobacco Settlement Authority
	6.00% 6/1/28			6,000,000		7,045,200
	6.25% 6/1/24			6,810,000		7,668,401
	Indiana State Finance Authority Environmental Revenue
	(U.S. Steel Corp. Project) 6.00% 12/1/26			2,500,000		2,608,025
	Indianapolis, Indiana Airport Authority Revenue Special
	Facilities (Federal Express Corp. Project)
	5.10% 1/15/17 (AMT)			2,750,000		3,122,790
	Series 1998 5.50% 5/1/29 (AMT)			2,000,000		2,001,520
	Maryland Economic Development Corporation Revenue
	(CNX Marine Terminals Inc.) 5.75% 9/1/25			3,375,000		3,665,250
	M-S-R Energy Authority, California Gas Revenue Series A
	6.125% 11/1/29			1,915,000		2,279,482
	6.50% 11/1/39			3,915,000		5,031,323
	New Jersey Economic Development Authority Special
	Facilities Revenue (Continental Airlines, Inc. Project)
	4.875% 9/15/19 (AMT)			2,000,000		2,035,360
•	New York City, New York Industrial Development Agency
	Special Facilities Revenue (American Airlines - JFK
	International Airport) 7.75% 8/1/31 (AMT)			2,000,000		2,103,320
	New York State Liberty Development Corporation Revenue
	(Second Priority - Bank of America Tower)
	Class 3 6.375% 7/15/49			1,000,000		1,149,250
	Ohio State Air Quality Development Authority Revenue
	Environmental Improvement
	(AK Steel Holding) Series A 6.75% 6/1/24 (AMT)			1,500,000		1,553,745
	(First Energy Generation) Series A 5.70% 8/1/20			4,750,000		5,538,405

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Allegheny Energy Supply Co.)
	7.00% 7/15/39		$	6,340,000	$	7,591,770
	Rockport, Indiana Revenue (AK Steel Holding)
	7.00% 6/1/28 (AMT)			1,790,000		1,872,680
	Tobacco Settlement Financing Corporation, New Jersey
	Series 1A 5.00% 6/1/41			3,205,000		2,672,938
	Valdez, Alaska Marine (BP Pipelines Project)
	Series B 5.00% 1/1/21			3,455,000		4,131,144
	Series C 5.00% 1/1/21			1,880,000		2,247,916
						95,279,808
Education Revenue Bonds – 11.86%
	Bowling Green, Ohio Student Housing Revenue CFP I
	(State University Project) 6.00% 6/1/45			5,390,000		5,796,783
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools)
	6.125% 7/1/46			5,160,000		5,338,381
	Connecticut State Health & Educational Facilities Authority
	Revenue (Yale University) Series A-1 5.00% 7/1/25			3,000,000		3,643,170
	Delaware County, Pennsylvania Industrial Development
	Authority Charter School Revenue (Chester Community
	Charter School) Series A 6.125% 8/15/40			1,910,000		1,695,431
	Gainesville, Georgia Redevelopment Authority Educational
	Facilities Revenue (Riverside Military Academy Project)
	5.125% 3/1/37			2,850,000		2,606,981
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 7.00% 6/15/39			4,200,000		4,402,356
	Massachusetts Development Finance Agency
	(Harvard University) Series B-2 5.25% 2/1/34			5,000,000		6,065,200
	Massachusetts State Health & Educational Facilities
	Authority Revenue (Harvard University) Series A
	5.00% 12/15/29			5,295,000		6,366,866
	5.50% 11/15/36			4,515,000		5,485,364
	Missouri State Health & Educational Facilities Authority
	Revenue (Washington University)
	Series A 5.375% 3/15/39			5,000,000		5,820,400
	New Jersey Economic Development Authority Revenue
	(Provident Group - Montclair) 5.875% 6/1/42			4,285,000		4,755,279

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	New Jersey State Educational Facilities Authority Revenue
	(University of Medicine & Dentistry)
	Series B 7.50% 12/1/32		$	1,435,000	$	1,801,370
	New York City Trust for Cultural Resources (Whitney
	Museum of American Art) 5.00% 7/1/31			1,500,000		1,693,140
	North Texas Education Finance Corporation
	(Uplift Education) Series A 5.125% 12/1/42			3,000,000		3,180,510
	Pennsylvania State Higher Educational Facilities Authority
	Student Housing Revenue (University Properties Inc. -
	East Stroudsburg University of Pennsylvania)
	5.00% 7/1/31			6,000,000		6,337,740
	Private Colleges & Universities Authority, Georgia Revenue
	(Mercer University) Series A 5.00% 10/1/32			1,360,000		1,460,545
	Provo, Utah Charter School Revenue (Freedom Academy
	Foundation Project) 5.50% 6/15/37			1,665,000		1,597,484
	San Juan, Texas Higher Education Finance Authority
	Education Revenue (Idea Public Schools)
	Series A 6.70% 8/15/40			1,500,000		1,740,345
	St. Louis, Missouri Industrial Development Authority
	Revenue (Confluence Academy Project) Series A
	5.25% 6/15/25			1,150,000		1,102,344
	5.35% 6/15/32			2,300,000		2,155,767
	University of California Revenue Limited Project
	Series G 5.00% 5/15/42			4,655,000		5,359,581
						78,405,037
Electric Revenue Bonds – 3.62%
	California State Department of Water Resources
	Series L 5.00% 5/1/20			5,000,000		6,245,600
	Long Island, New York Power Authority Series A
	5.00% 9/1/37			2,440,000		2,741,096
	5.00% 9/1/42			3,000,000		3,343,440
	Puerto Rico Electric Power Authority Revenue
	Series A 5.00% 7/1/42			4,620,000		4,729,679
	Series PP 5.00% 7/1/25 (NATL-RE) (FGIC)			1,000,000		1,049,740
	Series WW 5.50% 7/1/38			2,100,000		2,245,971
	Series XX 5.75% 7/1/36			3,245,000		3,558,305
						23,913,831

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds – 11.15%
	Alachua County, Florida Health Facilities Authority
	Refunding (Oak Hammock University)
	Series A 8.00% 10/1/42		$	1,000,000	$	1,187,540
	Brevard County, Florida Health Facilities Authority Health
	Care Facilities Revenue (Heath First Inc. Project)
	7.00% 4/1/39			1,610,000		1,995,885
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29			2,500,000		2,993,475
	California Statewide Communities Development Authority
	Revenue (Kaiser Permanente) Series A 5.00% 4/1/42			5,375,000		5,873,047
	Cape Girardeau County, Missouri Industrial Development
	Authority Health Care Facilities Revenue Unrefunded
	Balance (St. Francis Medical Center) Series A
	5.50% 6/1/32			1,000,000		1,015,920
	Cleveland - Cuyahoga County, Ohio Port Authority
	Revenue Senior Housing (St. Clarence - Geac)
	Series A 6.25% 5/1/38			1,500,000		1,501,710
	Colorado Health Facilities Authority Revenue
	(Evangelical Lutheran) Series A 5.25% 6/1/34			4,275,000		4,373,282
	Fairfax County, Virginia Industrial Development
	Authority Revenue (Inova Health Services)
	Series A 5.50% 5/15/35			2,500,000		2,856,575
	Illinois Finance Authority Revenue (Silver Cross &
	Medical Centers) 7.00% 8/15/44			3,000,000		3,593,040
	Illinois Health Facilities Authority Revenue (Elmhurst
	Memorial Healthcare Project) 5.625% 1/1/28			2,000,000		2,025,680
	Koyukuk, Alaska Revenue (Tanana Chiefs Conference
	Health Care Facility Project) 7.75% 10/1/41			3,000,000		3,291,870
	Louisiana Public Facilities Authority Revenue
	(Ochsner Clinic Foundation Project) 6.50% 5/15/37			2,190,000		2,621,956
	Maricopa County, Arizona Industrial Development Authority
	Health Facilities Revenue (Catholic Healthcare West)
	Series A 6.00% 7/1/39			3,690,000		4,237,707
	Martin County, Florida Health Facilities Authority Revenue
	(Martin Memorial Medical Center) 5.50% 11/15/42			2,500,000		2,728,900
	Michigan State Hospital Finance Authority Revenue
	(Ascension Health Credit Group)
	Series B 5.25% 11/15/26			3,500,000		3,583,545

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Montgomery County, Pennsylvania Industrial Development
	Authority Revenue (Whitemarsh Continuing Care)
	6.00% 2/1/21		$	3,075,000	$	3,148,247
	New York State Dormitory Authority Revenue
	Non State Supported Debt
	(North Shore LI Jewish Health System)
	Series A 5.50% 5/1/37			3,000,000		3,415,980
	(Orange Regional Medical Center)
	6.25% 12/1/37			2,250,000		2,449,485
	6.50% 12/1/21			2,745,000		3,153,676
	North Carolina Medical Care Commission
	Health Care Facilities Revenue
	(First Mortgage - Galloway Ridge Project)
	Series A 5.875% 1/1/31			1,555,000		1,679,633
	(First Mortgage - Presbyterian Homes) 5.40% 10/1/27			3,260,000		3,346,194
	Ohio State Higher Educational Facility Community Revenue
	(Cleveland Clinic Health System Obligation Group)
	Series A 5.25% 1/1/33			2,000,000		2,211,360
^	Oregon Health & Science University Revenue (Capital
	Appreciation Insured) Series A 5.75% 7/1/21 (NATL-RE)			2,000,000		1,507,640
	Philadelphia, Pennsylvania Hospitals & Higher Education
	Facilities Authority Hospital Revenue (Temple University
	Health System) Series A 5.50% 7/1/30			2,700,000		2,815,938
	Rochester, Minnesota Health Care Facilities Revenue
	(Mayo Clinic) 4.00% 11/15/41			1,310,000		1,371,701
	Tempe, Arizona Industrial Development Authority Revenue
	(Friendship Village) Series A 6.25% 12/1/46			1,000,000		1,081,190
	West Virginia Hospital Finance Authority Revenue
	(Highland Hospital Obligation Group) 9.125% 10/1/41			3,000,000		3,701,520
						73,762,696
Housing Revenue Bonds – 0.88%
	California Municipal Finance Authority Mobile Home Park
	Revenue (Caritas Projects) Series A 6.40% 8/15/45			4,735,000		5,184,446
	Oregon Health, Housing, Educational, & Cultural Facilities
	Authority Revenue (Pier Park Project) Series A
	6.05% 4/1/18 (GNMA) (AMT)			650,000		651,723
						5,836,169

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds – 10.72%
	California Statewide Communities Development Authority
	Revenue (Inland Regional Center Project) 5.25% 12/1/27		$	1,000,000	$	1,030,880
	Capital Area, Texas Cultural Education Facilities Finance
	Corporation Revenue (Roman Catholic Diocese)
	Series B 6.125% 4/1/45			2,045,000		2,246,780
	Capital Trust Agency Florida Revenue
	(Fort Lauderdale/Cargo Acquisition Project)
	5.75% 1/1/32 (AMT)			4,750,000		4,789,710
	(Orlando/Cargo Acquisition Project) 6.75% 1/1/32 (AMT)			2,395,000		2,459,378
	Grapevine, Texas Industrial Development Corporate Revenue
	(Air Cargo) 6.50% 1/1/24 (AMT)			850,000		861,475
	Houston, Texas Industrial Development Corporate Revenue
	(Air Cargo) 6.375% 1/1/23 (AMT)			1,855,000		1,879,894
	Hudson, New York Yards Infrastructure Corporation
	Revenue Series A 5.75% 2/15/47			10,250,000		12,044,058
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue
	(Branson Landing Project) Series A
	5.25% 12/1/19			1,435,000		1,500,092
	5.625% 12/1/28			2,365,000		2,446,805
	New Jersey Economic Development Authority
	(School Facilities Construction)
	Series EE 5.00% 9/1/18			3,500,000		4,205,285
	Series GG 5.75% 9/1/23			1,000,000		1,244,710
	New York City, New York Industrial Development Agency
	Revenue (Queens Baseball Stadium)
	5.00% 1/1/46 (AMBAC)			1,000,000		1,015,100
	New York City, New York Industrial Development Agency
	Trips Series A 5.00% 7/1/28 (AMT)			1,685,000		1,784,921
	New York State Liberty Development Corporation Revenue
	(World Trade Center Project) 5.75% 11/15/51			16,490,000		19,551,531
	Class 1 5.00% 9/15/40			2,140,000		2,438,423
	Class 2 5.00% 9/15/43			3,860,000		4,229,286
	Puerto Rico Public Buildings Authority Revenue
	(Government Facilities)
	Series F 5.25% 7/1/25			930,000		1,013,988
	Series U 5.25% 7/1/42			4,100,000		4,170,602

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
^	St. Louis, Missouri Industrial Development Authority
	Leasehold Revenue (Convention Center Hotel)
	5.80% 7/15/20 (AMBAC)		$	3,035,000	$	1,976,787
						70,889,705
Local General Obligation Bonds – 3.07%
	Georgetown, Texas Independent School District
	(School Building)
	5.00% 8/15/24 (PSF)			1,430,000		1,738,208
	5.00% 8/15/26 (PSF)			1,000,000		1,201,380
	New York City, New York
	Series A 5.00% 8/1/19			2,690,000		3,307,732
	Series I-1 5.375% 4/1/36			5,000,000		5,786,950
	Subseries D-1 5.00% 10/1/36			6,500,000		7,424,040
	Wake County, North Carolina Refunding
	Series C 5.00% 3/1/22			635,000		819,531
						20,277,841
§Pre-Refunded/Escrowed to Maturity Bonds – 6.09%
	Boerne, Texas Independent School District Building
	5.25% 2/1/27-13 (PSF)			4,000,000		4,084,520
	Cape Girardeau County, Missouri Industrial Development
	Authority Health Care Facilities Revenue (Southeast
	Missouri Hospital) 5.25% 6/1/16 (NATL-RE)			310,000		341,961
	Delaware Transportation Authority Revenue 5.00% 7/1/22-15			4,345,000		4,920,060
^	Greene County, Missouri Single Family Mortgage Revenue
	Municipal Multiplier (Private Mortgage Insurance)
	11.75% 3/1/16			1,225,000		1,188,422
	Michigan State Hospital Finance Authority Revenue
	(Trinity Health Credit) Series C 5.375% 12/1/30-12			4,120,000		4,173,395
	New Jersey State Economic Development Authority
	Revenue (Cigarette Tax) 5.75% 6/15/34-14			1,935,000		2,123,334
	Oklahoma State Turnpike Authority Revenue (First Senior)
	6.00% 1/1/22			13,535,000		18,559,056
	Powell, Ohio 5.50% 12/1/32-12 (NATL-RE) (FGIC)			2,000,000		2,026,620
	Virgin Islands Public Finance Authority Revenue
	Series A 7.30% 10/1/18			1,825,000		2,210,075
	Wisconsin Housing & Economic Developing Authority
	Revenue 6.10% 6/1/21-17 (FHA)			550,000		647,895
						40,275,338

		Principal amount				Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 17.14%
	Brooklyn Arena Local Development Corporation, New York
	Pilot Revenue (Barclays Center Project)
	6.25% 7/15/40		$	1,500,000	$	1,744,755
	6.50% 7/15/30			8,230,000		9,863,079
	California State Economic Recovery Series A 5.25% 7/1/21			3,130,000		3,811,213
	California Statewide Communities Development Authority
	Revenue (Inland Regional Center Project)
	5.375% 12/1/37			3,220,000		3,280,826
	Denver, Colorado Convention Center Hotel Authority
	Revenue Senior 5.00% 12/1/35 (SGI)			1,305,000		1,338,434
	Florida Enterprise Community Development District
	Special Assessment 6.10% 5/1/16 (NATL-RE)			490,000		492,127
	Guam Government Business Privilege Tax Revenue
	Series B-1 5.00% 1/1/42			2,500,000		2,757,525
	Henderson, Nevada Local Improvement Districts #T-18
	5.30% 9/1/35			2,305,000		1,279,529
	Hollywood, Florida Community Redevelopment Agency
	Revenue (Beach CRA) 5.625% 3/1/24			1,200,000		1,243,224
	Jacksonville, Florida Excise Taxes Revenue Series B
	5.00% 10/1/26 (AMBAC)			1,000,000		1,003,310
	Lammersville School District Community Facilities
	District #2002 (Mountain House) 5.125% 9/1/35			4,125,000		4,133,126
	Missouri State Environmental Improvement & Energy Water
	Pollution Control Revenue (State Revolving Fund Project)
	Series A 6.05% 7/1/16 (AGM)			670,000		673,062
	Missouri State Highways & Transportation Commission
	State Road Revenue Series B 5.00% 5/1/24			9,000,000		10,301,939
	Mosaic, Virginia District Community Development Authority
	Revenue Series A 6.875% 3/1/36			3,980,000		4,450,715
	New Jersey Economic Development Authority Revenue
	5.00% 6/15/25			3,000,000		3,382,560
	5.00% 6/15/26			2,000,000		2,244,440
	New Jersey Transportation Trust Fund Authority Revenue
	Series B 5.50% 6/15/31			10,000,000		11,905,599
	New York City, New York Industrial Development Agency
	(Yankee Stadium) 7.00% 3/1/49 (ASSURED GTY)			1,000,000		1,227,800
	New York City, New York Transitional Finance Authority
	Future Tax Secured
	Fiscal 2011 Series D 5.00% 2/1/26			3,000,000		3,597,240

Statements of net assets
Delaware Tax-Free USA Fund

			Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	New York City, New York Transitional Finance Authority
		Future Tax Secured (continued)
		Series C 5.25% 11/1/25	$	6,000,000	$	7,312,320
		Series D 5.00% 2/1/31		4,875,000		4,953,731
	New York Sales Tax Asset Receivables
		Series A 5.25% 10/15/27 (AMBAC)		1,000,000		1,093,250
	New York State Dormitory Authority State Personal Income
		Tax Revenue Series B 5.25% 3/15/38		6,000,000		7,022,340
	Puerto Rico Sales Tax Financing Corporation Tax Revenue
	^	(Convertible Capital Appreciation Bonds)
		Series A 5.75% 8/1/37		5,000,000		5,583,150
		Series A 6.75% 8/1/32		3,890,000		4,028,484
		Series C 5.00% 8/1/40		6,000,000		6,504,600
		Series C 6.00% 8/1/39		2,250,000		2,566,620
	San Mateo, California Special Tax Revenue (Community
		Facilities District #2008-1-Bay Meadows) 6.00% 9/1/42		1,000,000		1,088,620
	Tampa, Florida Sports Authority Revenue Sales Tax
		(Tampa Bay Arena Project) 5.75% 10/1/20 (NATL-RE)		1,000,000		1,111,350
^	Wyandotte County, Kansas City, Kansas Unified
		Government Special Obligation Revenue (Capital
		Appreciation - Sales Tax Subordinate Lien) 6.07% 6/1/21		4,970,000		3,372,543
						113,367,511
State General Obligation Bonds – 7.32%
	California State 5.25% 11/1/40			3,795,000		4,299,014
	California State Various Purposes
		5.00% 9/1/41		6,250,000		6,864,625
		6.00% 4/1/38		4,060,000		4,789,257
		6.50% 4/1/33		2,570,000		3,207,180
	New Jersey Economic Development Authority Revenue
		5.00% 6/15/28		2,695,000		3,007,351
		5.00% 6/15/29		2,050,000		2,273,307
	North Carolina State Public Improvement
		Series A 5.00% 5/1/20		10,585,000		13,394,152
	North Carolina State Refunding Series C 5.00% 5/1/22			2,950,000		3,817,094
	Puerto Rico Commonwealth Public Improvement
		Refunding Series A 5.00% 7/1/41		1,800,000		1,793,070
		Series A 5.25% 7/1/23		500,000		524,610
		(Un-Refunded Balance) Series A 5.125% 7/1/31		4,415,000		4,415,088
						48,384,748

			Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 9.31%
	Central Texas Regional Mobility Authority Revenue
		Senior Lien 6.00% 1/1/41	$	5,160,000	$	6,016,199
	Maryland Economic Development Corporation Revenue
		(Transportation Facilities Project) Series A 5.75% 6/1/35		5,075,000		5,550,020
	New York State Thruway Authority General Revenue
		Series H 5.00% 1/1/19 (NATL-RE)		6,240,000		7,399,268
	North Texas Tollway Authority Revenue (First Tier)
		Series A 6.00% 1/1/24		3,345,000		3,998,914
	•	Series E-3 5.75% 1/1/38		2,000,000		2,303,880
	Phoenix, Arizona Civic Improvement Corporation Airport
		Revenue Junior Lien Series A 5.00% 7/1/26		1,800,000		2,076,732
	Port Authority of New York & New Jersey Special Project
		(JFK International Air Terminal)
		6.00% 12/1/42		4,735,000		5,502,922
		6.50% 12/1/28		5,500,000		6,028,935
	St. Louis, Missouri Airport Revenue (Lambert-St. Louis
		International) Series A-1 6.625% 7/1/34		5,995,000		7,094,483
	Texas Private Activity Bond Surface Transportation
		Corporate Senior Lien
		(LBJ Infrastructure)
		7.00% 6/30/40		5,715,000		6,991,331
		7.50% 6/30/33		1,560,000		1,984,195
		(Mobility Partners) 6.875% 12/31/39		5,500,000		6,616,170
						61,563,049
Water & Sewer Revenue Bonds – 3.59%
	Atlanta, Georgia Water & Wastewater Revenue
		Series A 6.25% 11/1/39		5,500,000		6,617,215
	New York City, New York Municipal Water Finance
		Authority Water & Sewer System Revenue
		Fiscal 2009 Series A 5.75% 6/15/40		4,000,000		4,825,920
		Fiscal 2012 Series BB 5.25% 6/15/44		5,395,000		6,317,599
	San Francisco, California City & County Public Utilities
		Commission Water Revenue Series F 5.00% 11/1/27		5,000,000		5,973,900
						23,734,634
Total Municipal Bonds (cost $586,656,802)						655,690,367

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount		Value
Short-Term Investments – 0.19%
¤Variable Rate Demand Notes – 0.19%
	California State (Kindergarten) Series B1
	0.17% 5/1/34 (LOC – Citibank)	$	550,000	$	550,000
	Colorado State Educational & Cultural Facilities Authority
	Revenue (National Jewish Federation Bond Program)
	Series D-7 0.19% 2/1/35 (LOC – Wells Fargo Bank)		200,000		200,000
	Idaho State University Foundation Income Revenue
	(L.E. & Thelma Stephens Project)
	0.17% 5/1/21 (LOC – Wells Fargo Bank)		500,000		500,000
Total Short-Term Investments (cost $1,250,000)					1,250,000

Total Value of Securities – 99.35%
(cost $587,906,802)					656,940,367
Receivables and Other Assets
Net of Liabilities – 0.65%					4,328,903
Net Assets Applicable to 53,909,244
Shares Outstanding – 100.00%				$	661,269,270

Net Asset Value – Delaware Tax-Free USA Fund
Class A ($604,414,902 / 49,284,812 Shares)						$12.26
Net Asset Value – Delaware Tax-Free USA Fund
Class B ($1,827,534 / 149,101 Shares)						$12.26
Net Asset Value – Delaware Tax-Free USA Fund
Class C ($36,840,177 / 3,003,328 Shares)						$12.27
Net Asset Value – Delaware Tax-Free USA Fund
Institutional Class ($18,186,657 / 1,472,003 Shares)						$12.36

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)				$	589,080,107
Undistributed net investment income					128,895
Accumulated net realized gain on investments					3,026,703
Net unrealized appreciation of investments					69,033,565
Total net assets				$	661,269,270


§	Pre-refunded bonds. Municipals bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
^	Zero coupon security. The rate shown is the yield at the time of purchase.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
FGIC — Insured by Financial Guaranty Insurance Company
FHA — Federal Housing Administration
GNMA — Government National Mortgage Association collateral
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
PSF — Insured by the Permanent School Fund
SGI — Insured by Syncora Guarantee Inc.

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free USA Fund
Net asset value Class A (A)	$	12.26
Sales charge (4.50% of offering price) (B)		0.58
Offering price	$	12.84

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

See accompanying notes, which are an integral part of the financial statements.

Statements of net assets
Delaware Tax Free USA Intermediate Fund	August 31, 2012

		Principal amount		Value
Municipal Bonds – 99.02%
Corporate Revenue Bonds – 11.52%
	Alabama 21st Century Authority Revenue Series A
	5.00% 6/1/19	$	365,000	$	435,357
	5.00% 6/1/20		1,905,000		2,289,258
	5.00% 6/1/21		2,735,000		3,307,764
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Environmental Improvement -
	U.S. Steel Corp. Project) 6.50% 5/1/17		2,305,000		2,564,520
•	Chesapeake, Virginia Economic Development Authority
	Pollution Control Revenue (Electric & Power Co. Project)
	Series A 3.60% 2/1/32		1,150,000		1,163,593
	Chesterfield County, Virginia Economic Development
	Authority Pollution Control Revenue (Virginia Electric &
	Power) Series A 5.00% 5/1/23		1,460,000		1,708,404
	Harris County, Texas Industrial Development
	Corporation Solid Waste Disposal Revenue
	(Deer Park Refining Project) 5.00% 2/1/23		2,750,000		3,062,428
	Illinois Railsplitter Tobacco Settlement Authority
	5.25% 6/1/20		7,160,000		8,397,605
	6.25% 6/1/24		7,500,000		8,445,374
	Indianapolis, Indiana Airport Authority Revenue
	Special Facilities (Federal Express Corp. Project)
	5.10% 1/15/17 (AMT)		750,000		851,670
	Iowa Finance Authority Pollution Control Facilities Revenue
	(Interstate Power) 5.00% 7/1/14 (FGIC)		2,000,000		2,144,180
•	Maricopa County, Arizona Corporation Pollution Control
	Revenue (Public Service - Palo Verde Project) Series B
	5.20% 6/1/43		6,000,000		6,769,260
	Maryland Economic Development Corporation Pollution
	Control Revenue
	(CNX Marine Terminals Inc.) 5.75% 9/1/25		2,050,000		2,226,300
	(Potomac Electric Project) 6.20% 9/1/22		1,780,000		2,165,477
	Michigan State Strategic Fund Limited Obligation Revenue
	(Dow Chemical Project) Series B-2 6.25% 6/1/14		4,500,000		4,909,995
•	Mobile, Alabama Industrial Development Board Pollution
	Control Revenue (Alabama Power Co.) Series B
	4.875% 6/1/34		1,625,000		1,662,424
	New Jersey Economic Development Authority Special
	Facilities Revenue (Continental Airlines, Inc. Project)
	4.875% 9/15/19 (AMT)		4,000,000		4,070,720

		Principal amount		Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Ohio State Air Quality Development Authority Revenue
	Environmental Improvement (First Energy)
	Series A 5.70% 2/1/14	$	2,225,000	$	2,353,783
	Series A 5.70% 8/1/20		4,320,000		5,037,034
	Series C 5.625% 6/1/18		2,370,000		2,754,485
•	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Shipping Port) Series A
	3.375% 12/1/40		5,000,000		5,168,100
	Salt Verde, Arizona Financial Corporation Senior Gas
	Revenue 5.25% 12/1/24		3,050,000		3,358,599
	Tobacco Securitization Authority, Minnesota Tobacco
	Settlement Revenue Series B
	5.00% 3/1/21		3,415,000		4,028,471
	5.00% 3/1/22		2,935,000		3,448,919
	5.25% 3/1/31		2,480,000		2,803,590
	Tobacco Settlement Financing Corporation, New Jersey
	Series 1A 5.00% 6/1/41		9,050,000		7,547,610
	Valdez, Alaska Marine (BP Pipelines Project) Series B
	5.00% 1/1/21		6,675,000		7,981,297
					100,656,217
Education Revenue Bonds – 7.16%
	Boise, Idaho State University Revenue (General Project)
	Series A 4.00% 4/1/19		1,000,000		1,157,710
	California Municipal Finance Authority Educational Revenue
	(American Heritage Education Foundation Project)
	Series A 5.25% 6/1/26		1,000,000		975,070
	California Statewide Communities Development Authority
	Student Housing Revenue (Irvine, LLC - UCI East
	Campus) 6.00% 5/15/23		3,150,000		3,514,235
	Chattanooga, Tennessee Health Educational & Housing
	Facilities Board Revenue (CDFI Phase I, LLC Project)
	Series B 5.50% 10/1/20		885,000		926,515
	Clifton, Texas Higher Education Finance Corporation
	Revenue (Uplift Education) Series A 6.00% 12/1/30		1,100,000		1,264,054
	Connecticut State Health & Educational Facilities Authority
	Revenue (Yale University) Series A-1 5.00% 7/1/25		5,000,000		6,071,950

Statements of net assets
Delaware Tax Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Delaware County, Pennsylvania Industrial Development
	Authority Revenue (Chester Community Charter School)
	Series A 5.25% 8/15/30	$	1,335,000	$	1,116,167
	Grand Traverse, Michigan Public School Academy Revenue
	5.00% 11/1/36		1,000,000		869,750
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 6.25% 6/15/20		990,000		1,028,768
	Massachusetts State Development Finance
	Agency Revenue (Harvard University) Series B-1
	5.25% 10/15/29		1,670,000		2,067,226
	Massachusetts State Health & Educational Facilities
	Authority Revenue (Massachusetts Institution Technology)
	Series M 5.25% 7/1/20		3,000,000		3,877,200
	Metropolitan Government Nashville & Davidson County,
	Tennessee Health & Educational Facilities Revenue
	(Belmont University Project)
	5.00% 11/1/27		660,000		721,750
	5.00% 11/1/28		550,000		600,435
	5.00% 11/1/30		600,000		652,116
	Nassau County, New York Industrial Development Agency
	Civic Facility Revenue (New York Institute of Technology
	Project) Series A 4.75% 3/1/26		1,760,000		1,930,667
	New York City Trust for Cultural Resources
	(Whitney Museum of American Art)
	5.00% 7/1/21		3,025,000		3,661,490
	5.00% 7/1/31		1,000,000		1,128,760
	New York State Dormitory Authority
	(Non State Supported Debt - Rockefeller University)
	Series A 5.00% 7/1/27		1,055,000		1,279,747
	(Non State Supported Debt - St. Joseph’s College)
	5.25% 7/1/25		1,000,000		1,081,540
	North Carolina Capital Facilities Finance Agency
	(High Point University) 5.00% 5/1/32		1,830,000		1,962,126
	Ohio State Higher Educational Facility Revenue
	(John Carroll University) 5.50% 11/15/18		335,000		349,050
	Pennsylvania State Higher Educational Facilities Authority
	Revenue (Drexel University) Series A 5.25% 5/1/25		5,290,000		6,237,333

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Private Colleges & Universities Authority, Georgia Revenue
	(Mercer University Project)
	Series A 5.25% 10/1/27	$	2,020,000	$	2,239,877
	Series C 5.25% 10/1/23		600,000		677,118
	Series C 5.25% 10/1/27		2,100,000		2,349,291
	Troy, New York Capital Resource Corporation Revenue
	(Rensselaer Polytechnic) Series B 5.00% 9/1/18		2,500,000		2,997,425
	University of California Series A 5.125% 5/15/20 (AMBAC)		175,000		180,854
	University of Minnesota Series A 5.00% 12/1/17		5,040,000		6,124,961
	University of North Carolina at Chapel Hill 5.00% 12/1/31		3,490,000		4,031,648
	University of Oklahoma Research Facilities Revenue
	5.00% 3/1/23 (AMBAC)		1,065,000		1,078,227
	University of Virginia General Revenue Series B
	5.00% 6/1/20		205,000		211,681
	5.00% 6/1/21		205,000		211,681
					62,576,422
Electric Revenue Bonds – 2.83%
	California State Department Water Resources Power
	Supply Revenue
	Series L 5.00% 5/1/19		6,000,000		7,401,120
	Series N 5.00% 5/1/21		3,580,000		4,532,173
	Metropolitan Government Nashville & Davidson County,
	Tennessee Electric Revenue Series B 5.50% 5/15/14		1,000,000		1,088,090
	Rochester, Minnesota Electric Utilities Revenue Series C
	5.00% 12/1/18 (NATL-RE)		2,000,000		2,309,000
	Salt River, Arizona Project Agricultural Improvement &
	Power District Series A 5.00% 12/1/28		7,735,000		9,412,025
					24,742,408
Healthcare Revenue Bonds – 8.71%
	Allegheny County, Pennsylvania Municipal Development
	Authority Revenue (University of Pittsburgh Medical
	Center) Series A 5.00% 9/1/14		4,000,000		4,341,080
	Berks County, Pennsylvania Hospital Authority Revenue
	(Reading Hospital & Medical Center Project)
	Series A-3 5.25% 11/1/24		4,405,000		5,068,789
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29		2,250,000		2,694,128

Statements of net assets
Delaware Tax Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	California Health Facilities Financing Authority Revenue
	(Scripps Health) Series A 5.00% 11/15/32	$	4,250,000	$	4,785,203
	California Statewide Communities Development Authority
	Revenue (Kaiser Permanente) Series A 5.00% 4/1/19		5,325,000		6,323,809
	Cleveland-Cuyahoga County, Ohio Port Authority Revenue
	(Saint Clarence - Geac) Series A 6.125% 5/1/26		715,000		715,822
	Dauphin County, Pennsylvania General Authority Health
	System Revenue (Pinnacle Health System Project)
	Series A 6.00% 6/1/29		3,400,000		3,870,730
	Laramie County, Wyoming Hospital Revenue
	(Cheyenne Regional Medical Center Project)
	5.00% 5/1/23		1,000,000		1,146,260
	5.00% 5/1/25		1,175,000		1,337,644
•	Maryland State Health & Higher Education Facilities
	Authority Revenue (John Hopkins Health Systems)
	5.00% 5/15/46		790,000		815,778
	Minneapolis, Minnesota Health Care System Revenue
	(Fairview Health) Series A 6.375% 11/15/23		3,710,000		4,463,093
	Minneapolis, Minnesota Revenue (National Marrow Donor
	Program Project)
	5.00% 8/1/16		4,720,000		5,154,429
	5.00% 8/1/18		2,500,000		2,771,725
	New York State Dormitory Authority Revenue
	Non State Supported Debt
	(Memorial Sloan-Kettering Cancer Center) Series 1
	4.00% 7/1/21		1,600,000		1,846,688
	5.00% 7/1/21		570,000		708,339
	5.00% 7/1/24		2,595,000		3,157,311
	(North Shore LI Jewish) Series A 5.00% 5/1/23		4,000,000		4,655,800
	(Orange Regional Medical Center) 6.50% 12/1/21		2,000,000		2,297,760
	North Carolina Medical Care Commission Health Care
	Facilities Revenue (First Mortgage - Presbyterian
	Homes) 5.40% 10/1/27		780,000		800,623
	Ohio State Higher Educational Facilities Commission
	Revenue (Cleveland Clinic Health System Obligation
	Group) Series A
	5.00% 1/1/17		2,000,000		2,336,100
	5.00% 1/1/18		1,000,000		1,186,910

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Pennsylvania Economic Development Financing Authority
	Health System Revenue (Albert Einstein Healthcare)
	Series A 6.25% 10/15/23	$	670,000	$	785,046
•	Rochester, Minnesota Health Care Facilities Revenue
	(Mayo Clinic)
	Series A 4.00% 11/15/30		3,800,000		4,391,090
	Series C 4.50% 11/15/38		2,540,000		3,085,211
	St. Louis Park, Minnesota Health Care Facilities Revenue
	(Nicollet Health Services) Series C 5.50% 7/1/18		4,240,000		4,990,522
	St. Mary Hospital Authority, Pennsylvania Health
	System Revenue (Catholic Health East) Series A
	5.25% 11/15/16		1,200,000		1,294,332
	St. Paul, Minnesota Housing & Redevelopment Authority
	Hospital Revenue (Health East Project) 6.00% 11/15/25		1,000,000		1,061,400
					76,085,622
Housing Revenue Bonds – 0.54%
	Puerto Rico Housing Finance Authority Subordinate
	(Capital Fund Modernization) 5.50% 12/1/16		4,120,000		4,715,999
					4,715,999
Lease Revenue Bonds – 4.80%
	California Statewide Communities Development
	Authority Revenue (Inland Regional Center Project)
	5.25% 12/1/27		3,645,000		3,757,558
	Capital Trust Agency Florida Revenue (Fort Lauderdale/
	Cargo Acquisition Project) 5.75% 1/1/32 (AMT)		1,750,000		1,764,630
	Golden State, California Tobacco Securitization Corporation
	Settlement Revenue Refunding Asset-Backed Series A
	5.00% 6/1/18		1,170,000		1,170,807
	5.00% 6/1/21 (AMBAC)		1,000,000		1,001,270
	Idaho Building Authority Revenue (Health & Welfare
	Project) Series A 5.00% 9/1/24		2,800,000		3,455,704
	Los Angeles County, California (Disney Concert Hall Parking)
	5.00% 3/1/22		375,000		447,506
	5.00% 9/1/22		1,100,000		1,317,019
	5.00% 3/1/23		2,395,000		2,848,421
	New Jersey Economic Development Authority (School
	Facilities Construction) Series EE 5.00% 9/1/18		6,875,000		8,260,382

Statements of net assets
Delaware Tax Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	New York City, New York Industrial Development Agency
	Trips Series A 5.00% 7/1/22 (AMT)	$	735,000	$	794,234
	New York State Dormitory Authority Revenue (Third
	General Resolution - State University Educational
	Facilities) Series A 5.00% 5/15/23		2,170,000		2,689,541
	New York State Municipal Bond Bank Agency Special
	School Purpose Revenue Series C 5.25% 6/1/22		1,000,000		1,035,540
	Public Finance Authority, Wisconsin Airport Facilities Revenue
	(Senior Obligation Group) 5.00% 7/1/22 (AMT)		3,925,000		4,205,010
	Tobacco Settlement Financing New York Revenue
	(Asset-Backed) Series B 5.00% 6/1/18		1,000,000		1,203,530
	Virginia Commonwealth Transportation Board
	Transportation Revenue (U.S. Route 58 Corridor
	Development) Series B 4.75% 5/15/21		7,460,000		7,952,285
					41,903,437
Local General Obligation Bonds – 7.73%
	Chicago, Illinois Board of Education Refunding Dedicated
	Revenue Series B 5.00% 12/1/23 (AMBAC)		3,500,000		3,924,025
	Chicago, Illinois Modern Schools Across Chicago Series J
	5.00% 12/1/23 (AMBAC)		2,865,000		3,210,318
	Conroe, Texas Independent School District
	5.00% 2/15/25 (PSF)		3,865,000		4,626,212
	Dallas, Texas 5.125% 2/15/15		3,000,000		3,345,630
	Fairfax County, Virginia Refunding & Public
	Improvement Series A
	5.00% 4/1/17		4,000,000		4,795,080
	5.00% 4/1/20		10,000,000		11,965,500
	5.25% 4/1/14		3,500,000		3,777,235
	Henrico County, Virginia Refunding Public Improvement
	5.00% 7/15/19		4,000,000		5,014,720
	Houston, Texas Refunding & Public Improvement Series A
	5.00% 3/1/15		3,480,000		3,872,440
	5.25% 3/1/28		5,000,000		5,906,650
	Los Angeles, California Unified School District
	(Election 2004) Series G 5.00% 7/1/13 (AMBAC)		2,000,000		2,079,800

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	New York City, New York
	Series A-1 5.00% 8/1/19	$	3,500,000	$	4,134,410
	Series G 5.25% 8/1/15		1,000,000		1,070,440
	Series I 5.00% 8/1/21		1,000,000		1,086,490
	Series J 5.50% 6/1/23		15,000		15,544
	Subseries D-1 5.00% 10/1/30		4,000,000		4,717,200
	Wake County, North Carolina Refunding Series C
	5.00% 3/1/22		3,085,000		3,981,501
					67,523,195
§Pre-Refunded/Escrowed to Maturity Bonds – 4.85%
	Benton & Linn Counties, Oregon School District #509J
	5.00% 6/1/21-13 (AGM)		1,000,000		1,035,760
	California State 5.25% 11/1/17-13		785,000		830,671
	California State Economic Recovery Series A 5.25% 7/1/14		225,000		245,630
	Casa Grande, Arizona Tax Revenue 5.00% 4/1/22-14 (AMBAC)		1,600,000		1,716,976
	Cuyahoga County, Ohio Revenue (Cleveland Clinic Health)
	Series A
	Pre-Refunded 6.00% 1/1/21-13		510,000		534,592
	Unrefunded 6.00% 1/1/21-13		490,000		513,628
	Duluth, Minnesota Economic Development Authority
	Health Care Facilities Revenue (Benedictine Health
	System - St. Mary’s Hospital)
	5.25% 2/15/28-14		1,000,000		1,071,270
	5.50% 2/15/23-14		1,000,000		1,074,900
	Hampton, Virginia Convention Center Revenue
	5.25% 1/15/23-13 (AMBAC)		1,000,000		1,018,990
	Lancaster County, Pennsylvania Hospital Authority Revenue
	(Lancaster General Hospital Project) 5.75% 3/15/21-13		1,000,000		1,054,410
	Lansing, Michigan Community College (College Building &
	Site) 5.00% 5/1/21-13 (NATLE-RE)		1,325,000		1,367,480
	Los Angeles, California Unified School District (Election
	1997) Series F 5.00% 7/1/21-13 (FGIC)		2,880,000		2,995,401
	Lunenburg County, Virginia Series B
	5.25% 2/1/29-13 (NATL-RE)		715,000		737,344
	Miami-Dade County, Florida Educational Facilities Authority
	Revenue (University of Miami)
	Series A 5.00% 4/1/34-14 (AMBAC)		2,500,000		2,683,374

Statements of net assets
Delaware Tax Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds (continued)
	Michigan State Higher Education Facilities Authority
	Revenue Limited Obligation (Kalamazoo College
	Project) 5.50% 12/1/19-12	$	500,000	$	506,665
	Michigan State Hospital Finance Authority Revenue
	(Oakwood Obligation Group) 5.50% 11/1/14-13		2,230,000		2,364,893
	Middlesex County, New Jersey Improvement Authority
	Revenue (County-Guaranteed Open Space Trust
	Foundation) 5.25% 9/15/20-13		1,000,000		1,052,460
	Minneapolis, Minnesota Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12		750,000		758,573
	Minnesota State 5.00% 6/1/14		755,000		817,069
	New Jersey Economic Development Authority Revenue
	(Continental Airlines, Inc. Project) 6.625% 9/15/12 (AMT)		4,000,000		4,006,600
	New Jersey State Educational Facilities Authority
	Revenue (Georgian Court College Project) Series C
	6.50% 7/1/33-13		500,000		525,845
	New York City, New York Municipal Water Finance
	Authority Series B 5.00% 6/15/21-14 (AMBAC)		905,000		1,002,125
	New York City, New York Series J 5.50% 6/1/23-13		985,000		1,024,420
	New York State Dormitory Authority (Brooklyn Law School)
	Series A 5.50% 7/1/18-13 (RADIAN)		1,000,000		1,043,110
	North Texas Health Facilities Development Corporation
	Hospital Revenue (United Regional Health Care System,
	Inc. Project) 6.00% 9/1/23-13		1,000,000		1,056,440
•	Ohio State Higher Educational Facility Revenue Adjustable
	Medium Term (Kenyon College Project) 4.70% 7/1/37-13		1,000,000		1,035,860
	Ohio State University General Receipts (Ohio State
	University) Series B
	(Pre-refunded) 5.25% 6/1/21-13		820,000		851,152
	(Refunded) 5.25% 6/1/21-13		180,000		186,815
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series J 5.50% 7/1/21-14		1,000,000		1,093,160
	Puerto Rico Commonwealth Public Improvement Series A
	5.25% 7/1/22-13		3,470,000		3,616,572
	Puerto Rico Public Buildings Authority Revenue (Guaranteed
	Government Facilities) Series I 5.50% 7/1/23-14		2,000,000		2,186,320
	Puerto Rico Sales Tax Financing Corporation Sales Tax
	Revenue Series A 6.125% 8/1/29-14		70,000		75,852

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds (continued)
	University of California Revenue
	General 2012 Series A 5.125% 5/15/20-13 (AMBAC)	$	35,000	$	36,217
	Series A 5.125% 5/15/20-13 (AMBAC)		40,000		41,368
	University of Virginia Revenue Series B
	5.00% 6/1/20-13		1,045,000		1,082,181
	5.00% 6/1/21-13		1,045,000		1,082,181
					42,326,304
Resource Recovery Revenue Bond – 0.09%
	Pennsylvania Economic Development Financing Authority
	Resource Recovery Revenue (Subordinate Colver
	Project) Series G 5.125% 12/1/15 (AMT)		800,000		814,496
					814,496
Special Tax Revenue Bonds – 13.93%
	Baltimore, Maryland Convention Center Hotel Revenue
	Subordinated Series B 5.00% 9/1/16		1,000,000		1,010,820
	Brooklyn Arena Local Development Corporation New York
	Pilot Revenue (Barclays Center Project) 6.50% 7/15/30		5,500,000		6,591,365
	California State Economic Recovery Series A
	5.25% 7/1/14		775,000		844,556
	5.25% 7/1/21		2,740,000		3,336,334
	Columbia County, Georgia Sales Tax 5.00% 4/1/16		1,265,000		1,465,680
	Dallas, Texas Convention Center Hotel Development
	Revenue Series A
	5.00% 1/1/24		3,420,000		3,840,044
	5.25% 1/1/23		5,375,000		6,145,936
	Guam Government Limited Obligation Revenue
	(Section 30) Series A
	5.375% 12/1/24		1,750,000		1,943,620
	5.625% 12/1/29		1,125,000		1,264,961
	Louisiana State Citizens Property Insurance
	Corporation Assessment Revenue
	Series C-2 6.75% 6/1/26 (ASSURED GTY)		6,350,000		7,644,448
	Massachusetts State School Building Authority Senior
	Series B 5.00% 10/15/27		4,705,000		5,717,657
@	Modesto, California Special Tax Community Facilities
	District #04-1 (Village 2) 5.15% 9/1/36		1,500,000		1,501,605

Statements of net assets
Delaware Tax Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	New Jersey State Economic Development Authority Revenue
	5.00% 6/15/20	$	210,000	$	243,012
	5.00% 6/15/21		5,425,000		6,287,521
	5.00% 6/15/22		1,750,000		2,032,660
	5.00% 6/15/23		1,250,000		1,437,975
	5.00% 6/15/26		4,100,000		4,601,102
	New Jersey State Transportation Trust Fund Authority
	Series B 5.50% 6/15/31		10,910,000		12,989,009
	New York City, New York Transitional Finance Authority
	Future Tax Secured Subseries A-1 5.00% 11/1/20		2,860,000		3,587,412
	New York State Local Government Assistance Corporation
	Refunding Subordinate Lien Series A
	5.00% 4/1/17		8,615,000		10,293,718
	5.00% 4/1/20		3,360,000		4,208,131
	New York State Urban Development Corporation
	(Service Contract) Series A-1 5.00% 1/1/18		5,785,000		6,935,521
	Puerto Rico Sales Tax Financing Corporation Sales Tax Revenue
	Series A 6.125% 8/1/29		2,430,000		2,589,821
	Series C 5.00% 8/1/22		2,090,000		2,537,469
	Series C 6.50% 8/1/35		6,500,000		7,850,440
	Richmond Heights, Missouri Tax Increment & Transaction
	Sales Tax Revenue Refunding & Improvement (Francis
	Place Redevelopment Project) 5.625% 11/1/25		1,000,000		1,000,310
@	St. Joseph, Missouri Industrial Development Authority Tax
	Increment Revenue (Shoppes at North Village Project)
	Series A 5.10% 11/1/19		250,000		251,428
	Series B 5.375% 11/1/23		1,000,000		1,005,910
	Virgin Islands Public Finance Authority Revenue (Senior
	Lien Matching Fund Loan) Series A 5.25% 10/1/22		1,785,000		1,885,692
	Washington State Motor Vehicle Fuel Tax Series B
	5.00% 7/1/16		4,250,000		4,967,273
	Wyandotte County, Kansas City, Kansas Unified
	Government Special Obligation Revenue
	^(Capital Appreciation - Sales Tax Subordinate Lien)
	6.70% 6/1/21		4,970,000		3,372,543
	(Sales Tax-2nd Lien-Area B) 5.00% 12/1/20		555,000		588,572
	Wyoming State Loan & Investment Board Facilities
	Revenue 5.00% 10/1/24		1,550,000		1,684,060
					121,656,605

		Principal amount		Value
Municipal Bonds (continued)
State General Obligation Bonds – 16.78%
	California State 5.25% 11/1/17	$	215,000	$	226,872
	California State Refunding
	5.00% 2/1/20		4,250,000		5,146,878
	5.00% 2/1/31		1,390,000		1,576,886
	California State Various Purpose
	5.00% 10/1/18		5,000,000		6,041,900
	5.25% 9/1/28		7,750,000		9,073,080
	Connecticut State Economic Recovery Series A 5.00% 1/1/16		7,700,000		8,817,732
	Connecticut State Series C 5.00% 11/1/24		2,000,000		2,393,200
	Georgia State
	Series A 5.00% 7/1/22		7,380,000		9,572,745
	Series B 5.00% 7/1/17		4,810,000		5,806,488
	Illinois State Refunding Series B 5.00% 1/1/13		2,000,000		2,030,780
	Maryland State & Local Facilities
	Loan Capital Improvement
	First Series 5.00% 3/15/19		3,675,000		4,399,600
	Second Series 5.00% 8/1/17		1,500,000		1,755,675
	Series B 5.00% 3/1/18		1,930,000		2,362,281
	Massachusetts State Consolidated Loan Series C
	5.50% 11/1/15		4,090,000		4,736,997
	Minnesota State 5.00% 6/1/14		145,000		156,934
	Minnesota State Various Purpose Series A
	5.00% 8/1/19		7,020,000		8,797,604
	5.00% 8/1/20		3,495,000		4,433,827
	Mississippi State Series A 5.00% 10/1/17		4,860,000		5,869,373
	New Jersey Economic Development Authority Revenue
	5.00% 6/15/28		2,050,000		2,287,595
	5.00% 6/15/29		1,200,000		1,330,716
	New York State Series A 5.00% 2/15/28		5,000,000		6,017,050
	North Carolina State Public Improvement Series A
	5.00% 3/1/15		1,200,000		1,339,020
	North Carolina State Refunding
	Series A 5.00% 3/1/16		3,000,000		3,473,700
	Series A 5.00% 3/1/17		3,000,000		3,585,780
	Series B 5.00% 4/1/15		4,000,000		4,478,440
	Ohio State Series D 5.00% 9/15/14		3,500,000		3,829,140
	Oregon State Series L 5.00% 5/1/26		8,000,000		9,802,319
	Pennsylvania State Second Series 5.00% 7/1/20		2,300,000		2,877,369

Statements of net assets
Delaware Tax Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
State General Obligation Bonds (continued)
	Puerto Rico Commonwealth Government Development
	Bank 4.75% 12/1/15 (NATL-RE)	$	4,765,000	$	4,856,202
	Puerto Rico Commonwealth Public Improvement Series A
	5.00% 7/1/16 (ASSURED GTY)		2,110,000		2,357,714
	5.25% 7/1/23		1,125,000		1,180,373
	5.50% 7/1/39		5,000,000		5,209,700
	Virginia State
	Series B 5.00% 6/1/23		2,000,000		2,381,160
	Series D 5.00% 6/1/19		5,715,000		7,147,122
	Washington State Various Purpose Series A 5.00% 7/1/16		1,000,000		1,168,770
					146,521,022
Transportation Revenue Bonds – 14.75%
	Broward County, Florida Airport System Revenue Series O
	5.375% 10/1/29		2,000,000		2,301,720
	Charlotte, North Carolina Airport Revenue
	(Charlotte Douglas) Series A 5.00% 7/1/15		750,000		838,740
	Chicago, Illinois O’Hare International Airport Revenue
	General-Airport-Third Lien
	Series A 5.00% 1/1/25 (AGM)		3,725,000		4,123,389
	Series A-2 5.75% 1/1/20 (AGM) (AMT)		1,000,000		1,048,860
	Series C 5.25% 1/1/28		2,150,000		2,451,796
	Cleveland, Ohio Airport System Revenue Series A
	5.00% 1/1/28		1,750,000		1,964,060
	Dallas-Fort Worth, Texas International Airport
	Revenue Series A
	5.00% 11/1/22		680,000		772,874
	5.00% 11/1/23		750,000		852,435
	5.00% 11/1/24		400,000		454,632
	Delaware Transportation Authority Series A 5.00% 7/1/17		5,475,000		6,578,870
	Harris County, Texas Metropolitan Transit Authority Sales &
	Use Tax Revenue Series A 5.00% 11/1/31		3,250,000		3,831,620
	Houston, Texas Airports Commission Revenue Series B
	5.00% 7/1/25		1,000,000		1,176,640
	5.00% 7/1/26		3,000,000		3,510,660
	Idaho Housing & Finance Association Grant Revenue
	(Antic Federal Highway Transportation) Series A
	5.25% 7/15/21 (ASSURED GTY)		2,760,000		3,263,810
	Maryland State Economic Development Revenue
	(Transportation Facilities Project) Series A 5.375% 6/1/25		2,535,000		2,726,494

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Memphis-Shelby County, Tennessee Airport Authority
	Revenue Series D 5.00% 7/1/24	$	4,110,000	$	4,804,343
	Metropolitan, New York Transportation Authority Revenue
	Series 2008C 6.50% 11/15/28		2,860,000		3,670,038
	Series A 5.00% 11/15/18		2,500,000		3,008,850
	Series C 5.00% 11/15/32		4,500,000		5,198,175
	Metropolitan, Washington D.C. Airport Authority Systems
	Revenue Series A 5.50% 10/1/19 (FGIC) (NATL-RE) (AMT)		1,000,000		1,036,180
	Minneapolis - St. Paul, Minnesota Metropolitan Airports
	Commission Series A 5.00% 1/1/22 (AMBAC)		5,000,000		5,625,050
	Missouri State Highways & Transportation Commission
	State Road Revenue Second Lien 5.25% 5/1/23		1,940,000		2,297,736
	North Texas Tollway Authority Revenue (First Tier)
	Series A 6.00% 1/1/20		3,925,000		4,705,447
	•Series E-3 5.75% 1/1/38		3,750,000		4,319,775
	(Special Projects System) Series A 5.00% 9/1/17		1,000,000		1,192,720
	Pennsylvania State Turnpike Commission Revenue Series A
	5.25% 12/1/20 (AMBAC)		1,230,000		1,341,733
	Phoenix, Arizona Civic Improvement Revenue (Junior Lien)
	Series A 5.00% 7/1/26		7,500,000		8,653,050
	Port Authority of New York & New Jersey Special Project
	(JFK International Air Terminal) 6.50% 12/1/28		8,300,000		9,098,210
	Sacramento County, California Airport System Revenue
	5.00% 7/1/24		1,425,000		1,663,175
	(PFC/Grant) Series D 5.50% 7/1/28		2,020,000		2,291,205
	San Francisco, California City & County Airports Commission
	Series B 5.00% 5/1/15		4,000,000		4,473,040
	Series D 5.00% 5/1/25		2,000,000		2,374,000
	St. Louis, Missouri Airport Revenue (Lambert-St. Louis
	International) Series A-1 6.125% 7/1/24		3,780,000		4,426,531
	Texas Private Activity Bond Surface Transportation
	Corporate Senior Lien Revenue
	(LBJ Infrastructure) 7.50% 6/30/33		3,625,000		4,610,710
	(Mobility Partners) 7.50% 12/31/31		3,765,000		4,720,293
	Texas State Transportation Commission Highway Fund
	Revenue (First Tier) 5.00% 4/1/18		1,700,000		2,000,458

Statements of net assets
Delaware Tax Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Triborough, New York Bridge & Tunnel Authority Revenue
	Series A 5.00% 11/15/17	$	1,720,000	$	2,074,905
	Series A 5.00% 1/1/23		4,000,000		4,984,160
	•Series B-3 5.00% 11/15/38		1,800,000		2,043,864
	Virginia Commonwealth Transportation Board
	(Capital Projects) Series A-1 5.00% 5/15/16		2,000,000		2,322,400
					128,832,648
Water & Sewer Revenue Bonds – 5.33%
	Arizona Water Infrastructure Finance Authority Revenue
	(Water Quality) Series A
	5.00% 10/1/20		1,500,000		1,893,285
	5.00% 10/1/21		2,430,000		2,901,639
	Atlanta, Georgia Water & Wastewater Revenue
	Series A 6.00% 11/1/25		2,925,000		3,649,786
	Series B 5.50% 11/1/23 (AGM)		3,000,000		3,545,400
	King County, Washington Sewer Revenue Refunding
	Series B 5.00% 1/1/14 (NATL-RE)		3,500,000		3,718,470
	Massachusetts State Water Pollution Abatement Trust
	5.00% 8/1/16		2,170,000		2,544,108
	New York City, New York Municipal Water Finance
	Authority Water & Sewer System
	Series B 5.00% 6/15/21 (AMBAC)		1,180,000		1,301,800
	New York State Environmental Facilities Corporation
	Revenue (State Clean Water & Drinking Water
	Revolving Foundation)
	Series A 5.00% 6/15/22		1,405,000		1,673,299
	Series D 5.00% 9/15/23		3,360,000		3,975,082
	Series K 5.50% 6/15/15		3,500,000		4,004,945
	Portland, Oregon Sewer System Revenue (First Lien)
	Series A 5.00% 6/15/18		4,000,000		4,885,600
	San Francisco, California City & County Public
	Utilities Commission
	Series A 5.00% 11/1/27		7,430,000		8,907,380
	Series D 5.00% 11/1/16		3,000,000		3,542,070
					46,542,864
Total Municipal Bonds (cost $795,409,262)					864,897,239

	Principal amount		Value
Short-Term Investments – 0.34%
¤Variable Rate Demand Notes – 0.34%
California State Infrastructure & Economic Development
Bank Revenue (Los Angeles Museum) Series A
0.15% 9/1/37 (LOC – Wells Fargo Bank)	$	495,000	$	495,000
Montgomery County, Pennsylvania Series A
0.18% 8/15/24 (SPA – PNC Bank)		2,500,000		2,500,000
Total Short-Term Investments (cost $2,995,000)				2,995,000

Total Value of Securities – 99.36%
(cost $798,404,262)				867,892,239
Receivables and Other Assets
Net of Liabilities – 0.64%				5,633,072
Net Assets Applicable to 70,148,586
Shares Outstanding – 100.00%			$	873,525,311

Net Asset Value – Delaware Tax-Free USA Intermediate Fund
Class A ($464,539,829 / 37,440,595 Shares)					$ 12.41
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
Class B ($65,316 / 5,270 Shares)					$ 12.39
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
Class C ($75,886,724 / 6,119,523 Shares)					$ 12.40
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
Institutional Class ($333,033,442 / 26,583,198 Shares)					$ 12.53

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)			$	811,637,025
Undistributed net investment income				16,235
Accumulated net realized loss on investments				(7,615,926		)
Net unrealized appreciation of investments				69,487,977
Total net assets			$	873,525,311

Statements of net assets
Delaware Tax Free USA Intermediate Fund


•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
§	Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
@	Illiquid security. At August 31, 2012, the aggregate value of illiquid securities was $2,758,943, which represented 0.32% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
^	Zero coupon security. The rate shown is the yield at the time of purchase.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
CDFI — Community Development Financial Institutions
FGIC — Insured by Financial Guaranty Insurance Company
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
PSF — Guaranteed by Permanent School Fund
RADIAN — Insured by Radian Asset Assurance
SPA — Stand-by Purchase Agreement

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free USA Intermediate Fund
Net asset value Class A (A)	$	12.41
Sales charge (2.75% of offering price) (B)		0.35
Offering price	$	12.76

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

See accompanying notes, which are an integral part of the financial statements.

Delaware National High-Yield Municipal Bond Fund

August 31, 2012

		Principal amount		Value
Municipal Bonds – 97.06%
Corporate Revenue Bonds – 21.62%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Environmental Improvement -
	U.S. Steel Corp. Project)
	5.75% 8/1/42 (AMT)	$	2,000,000	$	1,983,240
	6.875% 5/1/30		300,000		327,915
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2
	5.875% 6/1/47		3,500,000		2,842,560
	6.50% 6/1/47		8,405,000		7,481,375
	Butler County, Pennsylvania Industrial Development
	Authority Refunding Revenue (AK Steel Holding)
	Series A 6.25% 6/1/20 (AMT)		1,275,000		1,315,086
	California State Enterprise Development Authority Revenue
	(Sunpower Corp. - Recovery Zone Facility) 8.50% 4/1/31		1,000,000		1,159,900
	Capital Trust Agency, Florida Revenue (Million Air One)
	7.75% 1/1/41 (AMT)		1,700,000		1,898,560
	Cass County, Texas Industrial Development Corporation
	Environmental Improvement Revenue (International
	Paper Co. Project) Series A 6.00% 9/1/25 (AMT)		1,000,000		1,003,400
	Cloquet, Minnesota Pollution Control Revenue (Potlatch
	Corp. Project) 5.90% 10/1/26		1,605,000		1,609,462
	Columbus County, North Carolina Industrial Facilities &
	Pollution Control Financing (International Paper Co.
	Project) Series A 5.70% 5/1/34		1,000,000		1,110,540
	De Soto Parish, Louisiana Environmental Improvement
	Revenue (International Paper Co. Project)
	Series A 6.35% 2/1/25 (AMT)		1,650,000		1,664,322
	Delaware State Economic Development Authority Revenue
	Exempt Facilities (Indian River Power) 5.375% 10/1/45		1,600,000		1,747,152
	Golden State, California Tobacco Securitization Corporate
	Settlement Revenue Refunding
	5.00% 6/1/45 (AMBAC)		1,000,000		1,020,900
	Asset-Backed Senior Notes Series A-1 5.75% 6/1/47		10,510,000		8,950,630
	Houston, Texas Airport System Revenue
	(Continental Airlines) Series A 6.625% 7/15/38 (AMT)		2,000,000		2,233,480
	Illinois Railsplitter Tobacco Settlement Authority
	6.00% 6/1/28		1,455,000		1,708,461
	Indiana State Finance Authority Environmental Revenue
	(U.S. Steel Corp. Project) 6.00% 12/1/26		935,000		975,401

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Iowa State Finance Authority Midwestern Disaster Area
	Revenue (Alcoa Inc. Project) 4.75% 8/1/42	$	3,000,000	$	3,017,820
	Louisiana Local Government Environmental Facilities &
	Community Development Authority Revenue
	(Westlake Chemical Corp.) Series A-1 6.50% 11/1/35		3,000,000		3,495,210
	Love Field Airport Modernization Corporation, Texas Special
	Facilities Revenue (Southwest Airlines Co. Project)
	5.25% 11/1/40		2,000,000		2,156,700
	Maryland Economic Development Corporation Facilities
	Revenue (CNX Marine Terminals Inc.) 5.75% 9/1/25		1,530,000		1,661,580
	Michigan Tobacco Settlement Financing Authority Revenue
	Asset-Backed Series A 6.00% 6/1/48		555,000		461,544
	Mississippi Business Finance Corporation Pollution Control
	Revenue (System Energy Resources, Inc. Project)
	5.90% 5/1/22		1,900,000		1,905,472
	M-S-R Energy Authority, California Gas Revenue
	Series B 6.125% 11/1/29		1,500,000		1,785,495
	Series C 6.50% 11/1/39		2,185,000		2,808,031
	New Jersey Economic Development Authority Special Facility
	Revenue (Continental Airlines Inc. Project)
	5.25% 9/15/29 (AMT)		4,000,000		4,086,280
	5.75% 9/15/27 (AMT)		2,000,000		2,006,000
	New York City, New York Industrial Development Agency
	Special Facilities Revenue
	(American Airlines - JFK International Airport)
	7.50% 8/1/16 (AMT)		200,000		210,320
	•7.75% 8/1/31 (AMT)		1,000,000		1,051,660
	(JetBlue Airways Corp. Project) 5.125% 5/15/30 (AMT)		1,000,000		971,040
	New York Liberty Development Corporation Revenue
	(Goldman Sachs Headquarters) 5.25% 10/1/35		2,000,000		2,332,840
	(Second Priority - Bank of America Tower)
	Class 2 5.625% 7/15/47		1,000,000		1,122,830
	Class 3 6.375% 7/15/49		2,500,000		2,873,125
	Ohio County, Kentucky Pollution Control Revenue
	(Big Rivers Electric Corp. Project)
	Series A 6.00% 7/15/31		1,250,000		1,443,350
	Ohio State Air Quality Development Authority Revenue
	(AK Steel Holding) 6.75% 6/1/24 (AMT)		1,000,000		1,035,830

		Principal amount		Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Allegheny Energy Supply Co.)
	7.00% 7/15/39	$	1,175,000	$	1,406,992
	Phenix City, Alabama Industrial Development Board
	Environmental Improvement Revenue (Mead Westvaco
	Corp. Project) Series A 6.35% 5/15/35 (AMT)		500,000		504,750
	Rockport, Indiana Revenue (AK Steel Holding)
	7.00% 6/1/28 (AMT)		1,210,000		1,265,890
•	St. Charles Parish, Louisiana Revenue
	(Valero Energy Corp. Project) 4.00% 12/1/40		1,635,000		1,760,078
	St. John Baptist Parish, Louisiana Revenue
	(Marathon Oil Corp.) Series A 5.125% 6/1/37		1,900,000		2,015,729
	Sweetwater County, Wyoming Solid Waste Disposal
	Revenue (FMC Corp. Project) 5.60% 12/1/35 (AMT)		1,000,000		1,063,610
	Tobacco Securitization Authority, Minnesota Tobacco
	Settlement Revenue Series B 5.25% 3/1/31		4,000,000		4,521,920
	Tobacco Settlement Financing Corporation, New Jersey
	Series 1A 5.00% 6/1/41		5,500,000		4,586,945
	Toledo, Lucas County, Ohio Port Authority Development
	Revenue (Toledo Express Airport Project)
	Series C 6.375% 11/15/32 (AMT)		1,000,000		1,018,810
	TSASC, New York Revenue (Asset-Backed)
	Series 1 5.125% 6/1/42		340,000		250,498
					91,852,733
Education Revenue Bonds – 17.61%
	Allegheny County, Pennsylvania Higher Education Building
	Authority Revenue (Carnegie Mellon University)
	Series A 5.00% 3/1/24		1,000,000		1,233,850
	Arlington, Texas Higher Education Finance
	(Arlington Classic Academy) 7.65% 8/15/40		1,000,000		1,121,600
	Bowling Green, Ohio Student Housing Revenue CFP I
	(State University Project) 6.00% 6/1/45		1,250,000		1,344,338
	California Municipal Finance Authority Revenue
	(Azusa Pacific University Project) Series B 7.75% 4/1/31		1,000,000		1,177,340
	(Santa Rosa Academy Project) Series A 6.00% 7/1/42		1,250,000		1,266,550
	(Southwestern Law School) 6.50% 11/1/41		1,500,000		1,758,525

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	California Statewide Communities Development Authority
	Charter School Revenue (Green Dot Public Schools)
	Series A 7.25% 8/1/41	$	915,000	$	1,009,977
	California Statewide Communities Development Authority
	Revenue (California Baptist University Project)
	7.50% 11/1/41		1,000,000		1,207,330
	Series A 5.50% 11/1/38		1,000,000		1,039,500
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools Project)
	6.00% 7/1/40		1,000,000		1,030,660
	Chattanooga, Tennessee Health Educational & Housing
	Facilities Board Revenue (CDFI Phase I, LLC Project)
	Series A 5.125% 10/1/35		1,000,000		1,014,610
	Subordinate Series B 6.00% 10/1/35		1,500,000		1,547,475
	Clifton, Texas Higher Education Finance
	Corporation Revenue
	(Idea Public Schools) 5.75% 8/15/41		1,000,000		1,099,010
	(Uplift Education) Series A 6.25% 12/1/45		1,000,000		1,169,730
	Delaware County, Pennsylvania Industrial Development
	Authority Revenue Charter School Revenue
	(Chester Community Charter School)
	Series A 6.125% 8/15/40		805,000		714,566
	Gainesville, Georgia Redevelopment Authority Educational
	Facilities Revenue (Riverside Military Academy Project)
	5.125% 3/1/37		2,000,000		1,829,460
	Idaho Housing & Financing Association Nonprofit Facilities
	Revenue (North Star Charter School Project)
	Series A 9.50% 7/1/39		1,000,000		1,111,440
	Illinois Finance Authority Charter School Revenue
	(Uno Charter School) Series A 7.125% 10/1/41		1,000,000		1,126,560
	Illinois Finance Authority Revenue (Lake Forest College)
	Series A 6.00% 10/1/48		1,000,000		1,035,900
	Illinois Finance Authority Student Housing Revenue
	(Dekalb II - Northern Illinois University Project)
	6.875% 10/1/43		1,000,000		1,183,630
	Indiana State Finance Authority Revenue Educational
	Facilities (Drexel Foundation - Thea Bowman Academy
	Charter School) Series A 7.00% 10/1/39		1,000,000		1,093,700

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Iowa Higher Education Loan Authority Revenue
	(Private College Facilities)
	5.00% 10/1/38	$	2,000,000	$	2,057,280
	6.00% 9/1/39		2,145,000		2,377,860
	Louisiana Public Facilities Authority Revenue
	(Lake Charles Charter Academy Foundation)
	8.00% 12/15/41		1,500,000		1,591,485
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 7.00% 6/15/39		1,345,000		1,409,802
	Maryland State Economic Development Corporation
	Student Housing Revenue (University of Maryland
	College Park Projects) 5.75% 6/1/33		1,130,000		1,239,418
	Maryland State Health & Higher Educational
	Facilities Authority Revenue
	(Patterson Park Public Charter School)
	Series A 6.125% 7/1/45		1,000,000		1,057,840
	@(Washington Christian Academy Project)
	Series A 5.50% 7/1/38		1,170,000		467,977
	Massachusetts Health & Educational Facilities Authority
	Revenue (Springfield College) 5.625% 10/15/40		1,000,000		1,082,090
	Massachusetts State Development Finance Agency
	Revenue (Harvard University) Series B-1 5.00% 10/15/20		1,510,000		1,924,223
	Michigan Finance Authority Limited Obligation Revenue
	(Public School Academy)
	(Old Redford) Series A 6.50% 12/1/40		900,000		934,767
	(University Learning) 7.50% 11/1/40		1,000,000		1,153,010
	(Voyageur) 8.00% 7/15/41		1,250,000		1,314,575
	Michigan Public Educational Facilities Authority Revenue
	(Limited-Obligation-Landmark Academy) 7.00% 12/1/39		950,000		1,022,077
	Minnesota Higher Education Facilities Authority Revenue
	(Bethel University) Series 6-R 5.50% 5/1/37		1,000,000		1,045,030
	New Castle County, Delaware Revenue
	(Newark Charter School Inc. Project) 5.00% 9/1/36		500,000		495,860
	New Jersey Economic Development Authority Revenue
	(Provident Group - Montclair) 5.875% 6/1/42		1,500,000		1,664,625

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	New Jersey State Educational Facilities Authority Revenue
	(Rider University) Series A 5.00% 7/1/37	$	800,000	$	869,232
	(University of Medicine & Dentistry) Series B
	7.50% 12/1/32		1,000,000		1,255,310
	New Jersey State Higher Education Student Assistance
	Authority Student Loan Revenue Series 1B
	5.75% 12/1/39 (AMT)		1,250,000		1,288,050
	North Carolina Capital Facilities Finance Agency
	(High Point University) 5.00% 5/1/32		1,500,000		1,608,300
	North Texas Education Finance Revenue (Uplift Education)
	Series A 5.25% 12/1/47		2,100,000		2,229,864
	Oregon State Facilities Authority Revenue
	(College Housing Northwest Project) Series A
	5.45% 10/1/32		1,000,000		1,003,280
	#(Concordia University Project) Series A 144A
	6.125% 9/1/30		1,000,000		1,085,780
	6.375% 9/1/40		500,000		547,635
	Pennsylvania State Higher Educational Facilities
	Authority Revenue
	(Edinboro University Foundation) 5.80% 7/1/30		1,300,000		1,454,102
	(Edinboro University Student Housing) 6.00% 7/1/42		1,000,000		1,098,710
	•(Foundation Indiana University) Series A
	0.959% 7/1/39 (SGI)		2,400,000		1,495,776
	Philadelphia, Pennsylvania Authority for Industrial
	Development Revenue
	(Discovery Charter School Project)
	5.875% 4/1/32		450,000		486,072
	6.25% 4/1/37		500,000		549,900
	(First Philadelphia Charter Project) Series A
	5.75% 8/15/32		745,000		755,214
	(Global Leadership Academy Project) 6.375% 11/15/40		1,000,000		1,079,310
	(New Foundation Charter School Project)
	6.625% 12/15/41		1,000,000		1,090,020
	Philadelphia, Pennsylvania Redevelopment Authority
	Revenue (Beech Student Housing Complex Project)
	Series A 5.50% 7/1/35 (ACA)		1,500,000		1,434,180
	Phoenix, Arizona Industrial Development Authority Revenue
	(Rowan University Project) 5.00% 6/1/42		2,000,000		2,157,520

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Private Colleges & Universities Authority, Georgia Revenue
	(Mercer University) Series A 5.00% 10/1/32	$	1,005,000	$	1,079,300
	Provo, Utah Charter School Revenue (Freedom Academy
	Foundation Project) 5.50% 6/15/37		910,000		873,100
	San Juan, Texas Higher Education Finance Authority
	Education Revenue (Idea Public Schools)
	Series A 6.70% 8/15/40		2,000,000		2,320,459
	Utah State Charter School Finance Authority Revenue
	(North Davis Preparatory) 6.375% 7/15/40		1,290,000		1,393,290
	Wyoming Community Development Authority Student
	Housing Revenue (CHF-Wyoming LLC)
	6.50% 7/1/43		1,000,000		1,104,470
	Yonkers, New York Economic Development Corporation
	Education Revenue (Charter School Educational
	Excellence) 6.25% 10/15/40		595,000		622,287
					74,834,831
Electric Revenue Bonds – 1.63%
	Indiana Finance Authority Revenue (Ohio Valley Electric
	Corp. Project) Series A 5.00% 6/1/39		4,000,000		4,169,000
	Long Island, New York Power Authority Series A
	5.00% 9/1/42		2,000,000		2,228,960
	Puerto Rico Electric Power Authority Revenue
	Series A 5.00% 7/1/42		500,000		511,870
					6,909,830
Healthcare Revenue Bonds – 23.62%
	Abag, California Finance Authority for Nonprofit
	Corporations Refunding (Episcopal Senior Communities)
	6.125% 7/1/41		1,650,000		1,872,503
	Alachua County, Florida Health Facilities Authority
	(Oak Hammock University)
	Series A 8.00% 10/1/42		1,000,000		1,187,540
	Series A 8.00% 10/1/46		1,500,000		1,768,560
	Apple Valley, Minnesota Economic Development Authority
	Health Care Revenue (Augustana Home St. Paul Project)
	Series A 6.00% 1/1/40		1,000,000		1,030,580
	Bexar County, Texas Health Facilities Development
	Corporation Revenue (Army Retirement
	Residence Project) 5.875% 7/1/30		1,000,000		1,113,940

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Brevard County, Florida Health Facilities Authority
	Health Care Facilities Revenue (Health First Inc. Project)
	7.00% 4/1/39	$	1,000,000	$	1,239,680
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29		900,000		1,077,651
	California Municipal Finance Authority Revenue
	(Eisenhower Medical Center) Series A 5.75% 7/1/40		1,000,000		1,076,560
	California Statewide Communities Development
	Authority Revenue
	(BE Group) 7.25% 11/15/41		500,000		570,400
	(Kaiser Permanente) Series A 5.00% 4/1/42		1,625,000		1,775,573
	Cleveland - Cuyahoga County, Ohio Port Authority
	Revenue Senior Housing (St. Clarence - Geac)
	Series A 6.25% 5/1/38		1,000,000		1,001,140
	Colorado Health Facilities Authority Revenue
	(Christian Living Community Project)
	Series A 5.75% 1/1/37		1,990,000		2,051,252
	Cumberland County, Pennsylvania Municipal Authority
	Revenue (Diakon Lutheran Ministries Project)
	5.00% 1/1/36		1,000,000		1,026,160
	6.375% 1/1/39		1,000,000		1,109,810
	Dauphin County, Pennsylvania General Authority Health
	System Revenue (Pinnacle Health System Project)
	5.00% 6/1/42		2,305,000		2,463,515
	East Rochester, New York Housing Authority Revenue
	Refunding (Senior Living - Woodland Village Project)
	5.50% 8/1/33		1,200,000		1,195,512
	Hawaii Pacific Health Special Purpose Revenue
	Series A 5.50% 7/1/40		1,250,000		1,362,225
	Hawaii State Department of Budget & Finance Special
	Purpose Senior Living Revenue
	(15 Craigside Project) Series A 9.00% 11/15/44		1,000,000		1,206,430
	(Kahala Nui) 5.25% 11/15/37		1,000,000		1,051,150
	Illinois Finance Authority Revenue
	(Admiral at Lake Project) 8.00% 5/15/46		1,500,000		1,765,770
	(Provena Health) Series A 7.75% 8/15/34		1,000,000		1,305,330
	(Silver Cross & Medical Centers) 7.00% 8/15/44		1,000,000		1,197,680

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Illinois Health Facilities Authority Revenue (Elmhurst
	Memorial Healthcare Project) 5.625% 1/1/28	$	1,000,000	$	1,012,840
	Indiana Finance Authority Hospital Revenue
	(King’s Daughters Hospital & Health) 5.50% 8/15/45		1,000,000		1,044,470
	Indiana Finance Authority Revenue (Marquette Project)
	5.00% 3/1/39		1,400,000		1,430,268
	Kentucky Economic Development Finance Authority Hospital
	Revenue (Owensboro Medical Health System)
	Series A 6.50% 3/1/45		1,000,000		1,191,920
	Kentwood, Michigan Economic Development Corporation
	Revenue (Limited Obligation - Holland Home)
	5.625% 11/15/41		1,250,000		1,290,463
	Koyukuk, Alaska Revenue (Tanana Chiefs Conference
	Health Care Facility Project) 7.75% 10/1/41		1,750,000		1,920,258
	Lancaster County, Pennsylvania Hospital Authority Revenue
	(Brethren Village Project) Series A 6.375% 7/1/30		725,000		780,861
	Lebanon County, Pennsylvania Health Facilities Authority
	Center Revenue (Pleasant View Retirement)
	Series A 5.30% 12/15/26		1,000,000		1,014,880
	Louisiana Public Facilities Authority Revenue
	(Ochsner Clinic Foundation Project) 6.50% 5/15/37		1,705,000		2,041,294
	Lucas County, Ohio Health Care Facilities Revenue
	(Sunset Retirement Communities) 5.50% 8/15/30		1,000,000		1,091,110
	Lucas County, Ohio Refunding & Improvement
	(Luthern Homes) Series A 7.00% 11/1/45		3,000,000		3,376,559
	Maine Health & Higher Educational Facilities Authority
	Revenue (Maine General Medical Center) 6.75% 7/1/41		1,700,000		1,990,343
	Martin County, Florida Health Facilities Authority Revenue
	(Martin Memorial Medical Center) 5.50% 11/15/42		1,000,000		1,091,560
	Maryland State Health & Higher Educational Facilities
	Authority Revenue (Doctors Community Hospital)
	5.75% 7/1/38		1,500,000		1,626,135
	Missouri State Health & Educational Facilities Authority
	(Lutheran Senior Services) 6.00% 2/1/41		1,000,000		1,122,330
	Montgomery County, Pennsylvania Industrial Development
	Authority Revenue (Meeting - Whitemarsh Continuing
	Care) 6.25% 2/1/35		2,500,000		2,542,300

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	New Hampshire Health & Education Facilities Authority
	(Rivermeade) Series A 6.875% 7/1/41	$	1,380,000	$	1,556,516
	New Jersey Health Care Facilities Financing
	Authority Revenue
	(St. Josephs Healthcare System) 6.625% 7/1/38		860,000		995,484
	(St. Peters University Hospital) 6.25% 7/1/35		2,700,000		3,088,719
	(Trinitas Hospital Obligation Group) Series A
	5.25% 7/1/30		1,240,000		1,302,161
	New York State Dormitory Authority Revenue Non State
	Supported Debt (Orange Regional Medical Center)
	6.25% 12/1/37		2,500,000		2,721,650
	North Carolina Medical Care Commission Health Care
	Facilities Revenue
	(First Mortgage - Galloway Ridge Project) 6.00% 1/1/39		1,520,000		1,639,305
	(First Mortgage - Presbyterian Homes) 5.60% 10/1/36		1,000,000		1,022,980
	Pennsylvania Economic Development Financing Authority
	Health System Revenue (Albert Einstein Healthcare)
	Series A 6.25% 10/15/23		1,100,000		1,288,881
	Philadelphia, Pennsylvania Hospitals & Higher Education
	Facilities Authority Hospital Revenue
	(Temple University Health System) Series A
	5.50% 7/1/30		2,000,000		2,085,880
	5.625% 7/1/42		1,000,000		1,051,980
	Salem, Oregon Hospital Facility Authority Revenue
	(Capital Manor Inc.)
	6.00% 5/15/42		1,250,000		1,343,100
	6.00% 5/15/47		1,500,000		1,611,720
	San Buenaventura, California Revenue (Community
	Memorial Health Systems) 7.50% 12/1/41		2,475,000		3,006,383
	South Carolina Jobs - Economic Development Authority
	Hospital Revenue (Palmetto Health) 5.75% 8/1/39		915,000		1,020,536
	Southeastern Ohio Port Authority Revenue
	(Memorial Health System) 6.00% 12/1/42		3,000,000		3,181,200
	St. Johns County, Florida Industrial Development Authority
	Revenue (Presbyterian Retirement)
	Series A 5.875% 8/1/40		1,000,000		1,099,420
	St. Louis Park, Minnesota Health Care Facilities Revenue
	(Park Nicollet Health Services) 5.75% 7/1/39		500,000		562,165

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Paul, Minnesota Housing & Redevelopment Authority
	Hospital Revenue (Health East Project) 6.00% 11/15/30	$	2,000,000	$	2,113,540
	Suffolk County, New York Economic Development
	Corporation Revenue (Peconic Landing Southland)
	6.00% 12/1/40		575,000		638,239
	Tempe, Arizona Industrial Development Authority
	Revenue Refunding (Friendship Village)
	Series A 6.25% 12/1/46		500,000		540,595
	Travis County, Texas Health Facilities Development
	Corporation Revenue (Westminister Manor Project)
	7.125% 11/1/40		1,000,000		1,175,420
	Vermont Economic Development Authority Revenue
	(Wake Robin Corp. Project) 5.40% 5/1/33		1,100,000		1,150,842
	Washington State Health Care Facilities Authority Revenue
	(Kadlec Regional Medical Center) 5.00% 12/1/42		3,000,000		3,058,770
	(Multicare Health System)
	Series B 6.00% 8/15/39 (ASSURED GTY)		1,250,000		1,463,200
	Wayzata, Minnesota Senior Housing Revenue
	(Folkestone Senior Living Community) Series A
	5.50% 11/1/32		270,000		278,613
	5.75% 11/1/39		600,000		625,716
	6.00% 5/1/47		920,000		968,778
	West Virginia Hospital Finance Authority Revenue
	(Highland Hospital Obligation Group) 9.125% 10/1/41		3,000,000		3,701,519
	Winchester, Virginia Industrial Development Authority
	Residential Care Facility Revenue (Westminster-
	Canterbury Project) Series A 5.30% 1/1/35		1,000,000		1,021,130
	Yavapai County, Arizona Industrial Development Authority
	Hospital Revenue (Yavapai Medical Center)
	Series A 6.00% 8/1/33		1,000,000		1,041,440
					100,372,434
Housing Revenue Bonds – 1.14%
	California Municipal Finance Authority Mobile Home Park
	Revenue (Senior - Caritas Projects) Series A
	5.50% 8/15/47		1,500,000		1,578,660
	6.40% 8/15/45		1,820,000		1,992,754
	Independent Cities, California Finance Authority Revenue
	(Sahar Mobile Home Park) Series A 5.00% 6/15/47		1,250,000		1,265,838
					4,837,252

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds – 9.95%
	California Municipal Finance Authority Revenue
	(Goodwill Industry Sacramento Valley and Northern
	Nevada Project) Series A
	6.625% 1/1/32	$	500,000	$	515,405
	6.875% 1/1/42		1,500,000		1,545,705
	Capital Area Cultural Education Facilities Finance
	Corporation Texas Revenue (Roman Catholic Diocese)
	Series B 6.125% 4/1/45		1,000,000		1,098,670
	Capital Trust Agency Florida Revenue
	(Air Cargo - Aero Miami) Series A 5.35% 7/1/29		980,000		997,483
	(Fort Lauderdale/Cargo Acquisition Project)
	5.75% 1/1/32 (AMT)		550,000		554,598
	District of Columbia Revenue (Center of Strategic &
	International Studies) 6.625% 3/1/41		2,235,000		2,440,352
	Houston, Texas Industrial Development Corporate Revenue
	(Air Cargo) 6.375% 1/1/23 (AMT)		1,500,000		1,520,130
	Hudson, New York Yards Infrastructure Corporation Revenue
	Series A 5.75% 2/15/47		2,500,000		2,937,575
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue (Branson Landing Project)
	Series A 5.50% 12/1/24		720,000		747,367
	New Jersey Economic Development Authority Revenue
	(UMM Energy Partners) Series A
	4.75% 6/15/32 (AMT)		1,000,000		999,930
	5.00% 6/15/37 (AMT)		560,000		565,835
	5.125% 6/15/43 (AMT)		500,000		508,625
	New York City, New York Industrial Development
	Agency Revenue (Airis JFK I, LLC Project)
	Series A 5.50% 7/1/28 (AMT)		905,000		907,615
	(Pilot - Queens Baseball Stadium) 5.00% 1/1/46 (AMBAC)		1,000,000		1,015,100
	New York State Liberty Development Corporation Liberty
	Revenue (World Trade Center Project)
	5.75% 11/15/51		7,485,000		8,874,666
	Class 1 5.00% 9/15/40		1,120,000		1,276,184
	Class 2 5.00% 9/15/43		2,015,000		2,207,775
	Class 3 5.00% 3/15/44		1,400,000		1,508,360
	Oklahoma City, Oklahoma Industrial & Cultural Facilities
	Subordinated (Air Cargo - Obligated Group)
	6.75% 1/1/23 (AMT)		1,160,000		1,161,334

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Onondaga County, New York Industrial Development
	Authority Revenue Subordinated (Air Cargo Project)
	7.25% 1/1/32 (AMT)	$	650,000	$	659,087
	Public Finance Authority, Wisconsin Airport Facilities
	Revenue (Senior Obligation Group)
	5.00% 7/1/42 (AMT)		2,000,000		2,010,680
	Puerto Rico Public Buildings Authority Revenue
	(Government Facilities) Series U 5.25% 7/1/42		5,000,000		5,086,100
	Puerto Rico Public Finance Corporation Revenue
	(Commonwealth Appropriation) Series B
	5.50% 8/1/31		1,880,000		1,994,774
	Wise County, Texas (Parker County Junior College District)
	8.00% 8/15/34		1,000,000		1,125,900
					42,259,250
§Pre-Refunded Bond – 0.25%
	New Jersey State Economic Development Authority Revenue
	(Cigarette Tax) 5.75% 6/15/34-14		965,000		1,058,923
					1,058,923
Resource Recovery Revenue Bond – 0.25%
	Mission Economic Development, Dallas, Texas Clean Energy
	Revenue (McCommas) 6.875% 12/1/24 (AMT)		1,000,000		1,074,050
					1,074,050
Special Tax Revenue Bonds – 8.65%
	Anne Arundel County, Maryland Special Obligation
	Revenue (National Business Park - North Project)
	6.10% 7/1/40		1,725,000		1,869,469
	Baltimore, Maryland Convention Center Hotel Revenue
	Subordinated Series B 5.875% 9/1/39		1,000,000		1,024,100
	Bonita Canyon, California Public Facilities Financing
	Authority (Community Facilities District #98-1)
	5.00% 9/1/28		700,000		723,702
	Brooklyn Arena Local Development Corporation,
	New York Pilot Revenue (Barclays Center Project)
	6.25% 7/15/40		4,000,000		4,652,680
	6.50% 7/15/30		1,175,000		1,408,155
	California Statewide Communities Development Authority
	Revenue (Inland Regional Center Project)
	5.375% 12/1/37		3,000,000		3,056,670

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Dutchess County, New York Local Development Corporation
	Revenue (Anderson Center Services Inc. Project)
	6.00% 10/1/30	$	2,000,000	$	2,114,540
@	Farms New Kent, Virginia Community Development
	Authority Special Assessment Series C 5.80% 3/1/36		1,000,000		600,490
	Henderson, Nevada Local Improvement Districts #T-18
	5.30% 9/1/35		650,000		360,822
	Lancaster, California Redevelopment Agency Tax Allocation
	Revenue (Combined Redevelopment Project Areas)
	6.875% 8/1/39		500,000		569,380
	Mosaic, Virginia District Community Development Authority
	Revenue Series A 6.875% 3/1/36		1,500,000		1,677,405
	Nampa Development Corporation, Idaho Revenue
	5.90% 3/1/30		2,000,000		2,158,740
	New York City, New York Industrial Development Agency
	(Pilot - Queens Baseball Stadium) 5.00% 1/1/22 (AMBAC)		1,000,000		1,032,140
	(Yankee Stadium) 7.00% 3/1/49 (ASSURED GTY)		1,000,000		1,227,800
	(YMCA of Greater New York Project) 5.00% 8/1/36		3,000,000		3,144,810
	Norco, California Redevelopment Agency Tax Allocation
	(Area #1 Project) 6.00% 3/1/36		1,000,000		1,100,270
	Puerto Rico Sales Tax Financing Corporation Tax Revenue
	Ω(Capital Appreciation) Series A 6.75% 8/1/32		730,000		755,988
	Series A 5.75% 8/1/37		800,000		893,304
	Series C 5.00% 8/1/40		1,250,000		1,355,125
	Richmond Heights, Missouri Tax Increment & Transaction
	Sales Tax Revenue Refunding & Improvement
	(Francis Place Redevelopment Project) 5.625% 11/1/25		1,200,000		1,200,372
	Roseville Westpark, California Community Facilities
	District #1 (Special Tax Public Facilities) 5.25% 9/1/37		600,000		601,284
	San Mateo, California Special Tax Revenue (Community
	Facilities District #2008-1-Bay Meadows) 6.00% 9/1/42		705,000		767,477
@	St. Joseph, Missouri Industrial Development
	Authority Tax Increment Revenue
	(Shoppes at North Village Project) Series A
	5.375% 11/1/24		1,000,000		1,004,280
	5.50% 11/1/27		500,000		501,375
	St. Louis, Missouri Industrial Development Authority Tax
	Increment Revenue Improvement (Grand Center
	Redevelopment Project) 6.375% 12/1/25		1,200,000		1,285,644

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Winter Garden Village at Fowler Groves Community
	Development District, Florida Special Assessment
	Revenue 5.65% 5/1/37	$	925,000	$	962,740
^	Wyandotte County, Kansas City, Kansas Unified Government
	Special Obligation Revenue (Capital Appreciation - Sales
	Tax Subordinate Lien) 6.07% 6/1/21		1,040,000		705,723
					36,754,485
State General Obligation Bonds – 5.28%
	Pennsylvania Commonwealth First Series 5.00% 6/1/22		3,000,000		3,813,660
	Puerto Rico Commonwealth Public Improvement Series A
	5.00% 7/1/41		5,900,000		5,877,285
	5.50% 7/1/39		2,000,000		2,083,880
	5.75% 7/1/41		2,000,000		2,139,060
	State of Connecticut Series C 5.00% 6/1/22		3,000,000		3,810,000
	State of Georgia Series A 5.00% 7/1/26		1,750,000		2,211,143
	State of New York Series A 5.25% 2/15/24		2,000,000		2,522,660
					22,457,688
Transportation Revenue Bonds – 6.61%
	Central Texas Regional Mobility Authority Revenue
	Senior Lien 6.00% 1/1/41		1,890,000		2,203,608
	Subordinate Lien 6.75% 1/1/41		1,000,000		1,152,590
	Delaware Transportation Authority Revenue Senior
	5.00% 7/1/22		2,000,000		2,559,860
	Houston, Texas Airport System Revenue Refunding
	Subordinate Lien Series A 5.00% 7/1/25 (AMT)		1,000,000		1,135,450
	Maryland Economic Development Corporation Revenue
	(Transportation Facilities Project)
	Series A 5.75% 6/1/35		1,000,000		1,093,600
	Port Authority of New York & New Jersey Special Project
	(JFK International Air Terminal) 6.00% 12/1/42		1,970,000		2,289,495
	Regional Transportation District, Colorado Private Activity
	Revenue (Denver Transit Partners) 6.00% 1/15/41		1,000,000		1,157,630
	Sacramento County, California Airport System Revenue
	(PFC/Grant) Series C 6.00% 7/1/41		1,000,000		1,149,880
	St. Louis, Missouri Airport Revenue (Lambert-St. Louis
	International) Series A-1 6.625% 7/1/34		1,090,000		1,289,906

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Texas Private Activity Bond Surface Transportation
	Corporate Senior Lien
	(LBJ Infrastructure)
	7.00% 6/30/40	$	7,000,000	$	8,563,309
	7.50% 6/30/33		500,000		635,960
	(Mobility Partners) 6.875% 12/31/39		4,055,000		4,877,922
					28,109,210
Water & Sewer Revenue Bond – 0.45%
	Puerto Rico Commonwealth Aqueduct & Sewer Authority
	Revenue Senior Lien Series A 6.00% 7/1/47		1,730,000		1,894,627
					1,894,627
Total Municipal Bonds (cost $380,281,213)					412,415,313

Short-Term Investments – 2.12%
¤Variable Rate Demand Notes – 2.12%
	Colorado State Educational & Cultural Facilities Authority
	Revenue (National Jewish Federation Bond Program)
	Series D-5 0.19% 10/1/38
	(LOC – JPMorgan Chase Bank)		2,000,000		2,000,000
	Minneapolis & St. Paul, Minnesota Housing &
	Redevelopment Authority Health Care Revenue
	(Allina Health System) Series B-1 0.18% 11/15/35
	(LOC – JPMorgan Chase Bank)		2,500,000		2,500,000
	Mississippi State Business Commission Gulf Opportunity
	Revenue (Chevron USA) Series D 0.17% 11/1/35		1,500,000		1,500,000
	Montgomery County, Pennsylvania
	Series A 0.18% 8/15/24 (SPA – PNC Bank)		2,000,000		2,000,000
	St. Paul, Minnesota Port Authority Revenue
	(Minnesota Public Radio Project)
	Series 7 0.20% 5/1/25 (LOC – JPMorgan Chase Bank)		1,000,000		1,000,000
Total Short-Term Investments (cost $9,000,000)					9,000,000

Total Value of Securities – 99.18%
	(cost $389,281,213)				421,415,313
Receivables and Other Assets
	Net of Liabilities – 0.82%				3,483,583
Net Assets Applicable to 39,389,182
	Shares Outstanding – 100.00%			$	424,898,896


Net Asset Value – Delaware National High-Yield Municipal Bond Fund
Class A ($228,828,847 / 21,285,500 Shares)			$10.75
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
Class B ($775,574 / 72,012 Shares)			$10.77
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
Class C ($69,633,683 / 6,450,421 Shares)			$10.80
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
Institutional Class ($125,660,792 / 11,581,249 Shares)			$10.85

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization - no par)	$	396,208,945
Undistributed net investment income		26,897
Accumulated net realized loss on investments		(3,471,046		)
Net unrealized appreciation of investments		32,134,100
Total net assets	$	424,898,896

•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
@	Illiquid security. At August 31, 2012, the aggregate value of illiquid securities was $2,574,122, which represented 0.61% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2012, the aggregate value of Rule 144A securities was $1,633,415, which represented 0.38% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
^	Zero coupon security. The rate shown is the yield at the time of purchase.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

Summary of abbreviations:

ACA — Insured by American Capital Access
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
CDFI — Community Development Financial Institutions
LOC — Letter of Credit
SGI — Insured by Syncora Guarantee Inc.
SPA — Stand-by Purchase Agreement

Net Asset Value and Offering Price Per Share –
Delaware National High Yield Municipal Bond Fund
Net asset value Class A (A)	$	10.75
Sales charge (4.50% of offering price) (B)		0.51
Offering price	$	11.26

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

See accompanying notes, which are an integral part of the financial statements.

Statements of operations
			Year Ended August 31, 2012

	Delaware			Delaware			Delaware
	Tax-Free			Tax-Free USA			National High-Yield
	USA Fund			Intermediate Fund			Municipal Bond Fund
Investment Income:
Interest	$	31,509,256		$	31,303,026		$	16,974,225

Expenses:
Management fees		3,456,436			4,114,753			1,644,908
Distribution expenses – Class A		1,449,286			1,374,991			418,943
Distribution expenses – Class B		21,360			1,435			7,604
Distribution expenses – Class C		333,253			680,855			525,617
Dividend disbursing and transfer
agent fees and expenses		453,767			807,713			243,344
Accounting and administration expenses		251,259			329,056			117,099
Registration fees		65,809			76,762			86,080
Legal fees		58,577			83,027			24,564
Reports and statements to shareholders		48,224			66,830			26,483
Trustees’ fees		30,999			40,420			14,030
Audit and tax		28,912			36,874			20,720
Pricing fees		16,162			24,505			19,700
Custodian fees		12,839			16,300			5,984
Insurance fees		11,032			13,967			4,332
Due and services		9,792			10,320			6,871
Consulting fees		5,764			7,511			2,833
Trustees’ expenses		1,886			2,405			751
		6,255,357			7,687,724			3,169,863
Less expenses absorbed or waived		(858,522	)		(589,689	)		(426,689	)
Less waived distribution expenses – Class A		—			(687,496	)		—
Less expenses paid indirectly		(337	)		(411	)		(116	)
Total operating expenses		5,396,498			6,410,128			2,743,058
Net Investment Income		26,112,758			24,892,898			14,231,167

Net Realized and Unrealized Gain:
Net realized gain on investments		12,593,089			8,549,846			119,419
Net change in unrealized appreciation
(depreciation) of investments		39,892,342			29,502,702			32,901,643
Net Realized and Unrealized Gain		52,485,431			38,052,548			33,021,062

Net Increase in Net Assets
Resulting from Operations	$	78,598,189		$	62,945,446		$	47,252,229

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free USA Fund

	Year Ended
		8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	26,112,758		$	27,971,525
Net realized gain (loss)		12,593,089			(2,115,254	)
Net change in unrealized appreciation (depreciation)		39,892,342			(14,131,063	)
Net increase in net assets resulting from operations		78,598,189			11,725,208

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(24,318,829	)		(26,383,867	)
Class B		(71,571	)		(137,957	)
Class C		(1,113,082	)		(1,092,256	)
Institutional Class		(547,276	)		(357,445	)
		(26,050,758	)		(27,971,525	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		24,908,312			136,032,754
Class B		29,617			120,830
Class C		6,942,209			6,817,145
Institutional Class		13,146,308			9,076,630

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		13,911,049			13,699,555
Class B		48,104			77,774
Class C		837,082			798,168
Institutional Class		353,695			213,566
		60,176,376			166,836,422

	Year Ended
		8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(72,229,853	)	$	(127,465,062	)
Class B		(1,107,287	)		(2,707,795	)
Class C		(4,210,929	)		(6,487,428	)
Institutional Class		(5,557,588	)		(7,518,826	)
		(83,105,657	)		(144,179,111	)
Increase (decrease) in net assets derived from
capital share transactions		(22,929,281	)		22,657,311
Net Increase in Net Assets		29,618,150			6,410,994

Net Assets:
Beginning of year		631,651,120			625,240,126
End of year	$	661,269,270		$	631,651,120

Undistributed net investment income	$	128,895		$	66,895

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund

			Year Ended
				8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
	Net investment income		$	24,892,898		$	24,117,514
	Net realized gain (loss)			8,549,846			(10,466,464	)
	Net change in unrealized appreciation (depreciation)			29,502,702			(6,086,618	)
	Net increase in net assets resulting from operations			62,945,446			7,564,432

Dividends and Distributions to Shareholders from:
	Net investment income:
		Class A		(13,653,725	)		(14,784,211	)
		Class B		(3,093	)		(8,235	)
		Class C		(1,448,064	)		(1,515,940	)
		Institutional Class		(9,787,989	)		(7,809,145	)
				(24,892,871	)		(24,117,531	)

Capital Share Transactions:
	Proceeds from shares sold:
		Class A		110,940,228			140,084,853
		Class B		2,352			20,903
		Class C		21,316,081			14,263,200
		Institutional Class		121,081,688			174,138,184

	Net asset value of shares issued upon reinvestment
		of dividends and distributions:
		Class A		10,732,723			10,808,489
		Class B		2,048			4,659
		Class C		1,183,202			1,166,302
		Institutional Class		5,274,687			3,678,088
				270,533,009			344,164,678

			Year Ended
				8/31/12			8/31/11
Capital Share Transactions (continued):
	Cost of shares redeemed:
		Class A	$	(122,640,858	)	$	(175,715,728	)
		Class B		(194,373	)		(273,313	)
		Class C		(10,083,689	)		(18,651,985	)
		Institutional Class		(88,824,807	)		(85,170,855	)
				(221,743,727	)		(279,811,881	)
Increase in net assets derived from
	capital share transactions			48,789,282			64,352,797
Net Increase in Net Assets				86,841,857			47,799,698

Net Assets:
	Beginning of year			786,683,454			738,883,756
	End of year		$	873,525,311		$	786,683,454

	Undistributed net investment income		$	16,235		$	16,208

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund

			Year Ended
				8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
	Net investment income		$	14,231,167		$	10,417,217
	Net realized gain (loss)			119,419			(2,617,378	)
	Net change in unrealized appreciation (depreciation)			32,901,643			(7,570,920	)
	Net increase in net assets resulting from operations			47,252,229			228,919

Dividends and Distributions to Shareholders from:
	Net investment income:
		Class A		(8,090,016	)		(6,771,903	)
		Class B		(31,314	)		(38,072	)
		Class C		(2,143,223	)		(1,767,391	)
		Institutional Class		(3,879,322	)		(1,748,678	)
				(14,143,875	)		(10,326,044	)

Capital Share Transactions:
	Proceeds from shares sold:
		Class A		98,235,878			69,006,067
		Class B		24,627			721
		Class C		28,063,476			20,108,287
		Institutional Class		94,846,876			52,126,539

	Net asset value of shares issued upon reinvestment
		of dividends and distributions:
		Class A		6,404,305			4,714,720
		Class B		19,983			21,607
		Class C		1,761,167			1,323,516
		Institutional Class		1,594,690			873,530
				230,951,002			148,174,987

			Year Ended
				8/31/12			8/31/11
Capital Share Transactions (continued):
	Cost of shares redeemed:
		Class A	$	(35,115,726	)	$	(65,639,157	)
		Class B		(121,264	)		(317,507	)
		Class C		(10,532,464	)		(11,190,907	)
		Institutional Class		(23,649,060	)		(24,642,477	)
				(69,418,514	)		(101,790,048	)
Increase in net assets derived from
	capital share transactions			161,532,488			46,384,939
Net Increase in Net Assets				194,640,842			36,287,814

Net Assets:
	Beginning of year			230,258,054			193,970,240
	End of year		$	424,898,896		$	230,258,054

	Undistributed (distributions in excess of)
		net investment income	$	26,897		$	(4,103	)

See accompanying notes, which are an integral part of the financial statements.

Financial highlights
Delaware Tax-Free USA Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:
Net investment income
Net realized and unrealized gain (loss)
Total from investment operations

Less dividends and distributions from:
Net investment income
Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:
Net assets, end of period (000 omitted)
Ratio of expenses to average net assets
Ratio of expenses to average net assets prior to fees waived
Ratio of net investment income to average net assets
Ratio of net investment income to average net assets prior to fees waived
Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.300		$11.630		$10.890		$10.970		$11.230


0.484		0.503		0.522		0.479		0.462
0.959		(0.330	)	0.740		(0.081	)	(0.260	)
1.443		0.173		1.262		0.398		0.202


(0.483	)	(0.503	)	(0.522	)	(0.478	)	(0.462	)
(0.483	)	(0.503	)	(0.522	)	(0.478	)	(0.462	)

$12.260		$11.300		$11.630		$10.890		$10.970

13.01%		1.65%		11.85%		3.91%		1.82%


$604,415		$589,175		$581,931		$536,420		$510,822
0.80%		0.80%		0.80%		0.84%		0.85%

0.93%		0.94%		0.95%		0.97%		0.94%
4.11%		4.52%		4.64%		4.60%		4.13%

3.98%		4.38%		4.49%		4.47%		4.04%
52%		49%		32%		66%		28%

Financial highlights
Delaware Tax-Free USA Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:
Net investment income
Net realized and unrealized gain (loss)
Total from investment operations

Less dividends and distributions from:
Net investment income
Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:
Net assets, end of period (000 omitted)
Ratio of expenses to average net assets
Ratio of expenses to average net assets prior to fees waived
Ratio of net investment income to average net assets
Ratio of net investment income to average net assets prior to fees waived
Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.290		$11.620		$10.880		$10.960		$11.230


0.395		0.418		0.437		0.399		0.378
0.969		(0.330	)	0.740		(0.080	)	(0.270	)
1.364		0.088		1.177		0.319		0.108


(0.394	)	(0.418	)	(0.437	)	(0.399	)	(0.378	)
(0.394	)	(0.418	)	(0.437	)	(0.399	)	(0.378	)

$12.260		$11.290		$11.620		$10.880		$10.960

12.27%		0.89%		11.01%		3.13%		0.96%


$1,827		$2,682		$5,373		$8,168		$11,812
1.56%		1.56%		1.56%		1.60%		1.61%

1.69%		1.70%		1.71%		1.73%		1.70%
3.35%		3.76%		3.88%		3.84%		3.37%

3.22%		3.62%		3.73%		3.71%		3.28%
52%		49%		32%		66%		28%

Financial highlights
Delaware Tax-Free USA Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$11.300		$11.630		$10.890		$10.970		$11.230


	0.395		0.419		0.437		0.399		0.377
	0.969		(0.330	)	0.740		(0.080	)	(0.260	)
	1.364		0.089		1.177		0.319		0.117


	(0.394	)	(0.419	)	(0.437	)	(0.399	)	(0.377	)
	(0.394	)	(0.419	)	(0.437	)	(0.399	)	(0.377	)

	$12.270		$11.300		$11.630		$10.890		$10.970

	12.26%		0.88%		11.00%		3.13%		0.96%


	$36,840		$30,552		$30,302		$20,542		$16,641
	1.56%		1.56%		1.56%		1.60%		1.61%

	1.69%		1.70%		1.71%		1.73%		1.70%
	3.35%		3.76%		3.88%		3.84%		3.37%

	3.22%		3.62%		3.73%		3.71%		3.28%
	52%		49%		32%		66%		28%

Financial highlights
Delaware Tax-Free USA Fund Institutional Class

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Date of commencement of operations; ratios have been annualized and total return has not been annualized.

² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

³ Portfolio turnover is representative of the Fund for the entire annual period.

See accompanying notes, which are an integral part of the financial statements.

						12/31/08¹
Year Ended						to
8/31/12		8/31/11		8/31/10		8/31/09
$11.380		$11.720		$10.890		$10.020


0.517		0.534		0.549		0.322
0.979		(0.340	)	0.830		0.870
1.496		0.194		1.379		1.192


(0.516	)	(0.534	)	(0.549	)	(0.322	)
(0.516	)	(0.534	)	(0.549	)	(0.322	)

$12.360		$11.380		$11.720		$10.890

13.41%		1.83%		12.84%		12.15%


$18,187		$9,242		$7,634		$1
0.56%		0.56%		0.56%		0.60%

0.69%		0.70%		0.71%		0.73%
4.35%		4.76%		4.88%		4.84%

4.22%		4.62%		4.73%		4.71%
52%		49%		32%		66%	³

Financial highlights
Delaware Tax-Free USA Intermediate Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects waivers by the manager and distributor. Performance would have been lower had the waivers not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$11.850		$12.110		$11.460		$11.250		$11.210


	0.362		0.381		0.423		0.388		0.383
	0.560		(0.260	)	0.650		0.210		0.041
	0.922		0.121		1.073		0.598		0.424


	(0.362	)	(0.381	)	(0.423	)	(0.388	)	(0.384	)
	(0.362	)	(0.381	)	(0.423	)	(0.388	)	(0.384	)

	$12.410		$11.850		$12.110		$11.460		$11.250

	7.89%		1.10%		9.53%		5.49%		3.83%


	$464,540		$444,780		$481,004		$459,782		$407,729
	0.75%		0.75%		0.75%		0.75%		0.75%

	0.97%		0.98%		1.00%		1.03%		1.03%
	2.98%		3.27%		3.59%		3.51%		3.38%

	2.76%		3.04%		3.34%		3.23%		3.10%
	39%		43%		27%		47%		28%

Financial highlights
Delaware Tax-Free USA Intermediate Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$11.840		$12.100		$11.450		$11.240		$11.200


	0.259		0.282		0.324		0.294		0.287
	0.550		(0.260	)	0.650		0.210		0.041
	0.809		0.022		0.974		0.504		0.328


	(0.259	)	(0.282	)	(0.324	)	(0.294	)	(0.288	)
	(0.259	)	(0.282	)	(0.324	)	(0.294	)	(0.288	)

	$12.390		$11.840		$12.100		$11.450		$11.240

	6.90%		0.25%		8.62%		4.61%		2.95%


	$65		$249		$511		$861		$1,272
	1.60%		1.60%		1.60%		1.60%		1.60%

	1.67%		1.68%		1.70%		1.73%		1.73%
	2.13%		2.42%		2.74%		2.66%		2.53%

	2.06%		2.34%		2.64%		2.53%		2.40%
	39%		43%		27%		47%		28%

Financial highlights
Delaware Tax-Free USA Intermediate Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
	8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
	$11.850		$12.110		$11.450		$11.240		$11.200


	0.258		0.282		0.323		0.294		0.287
	0.550		(0.260	)	0.660		0.210		0.041
	0.808		0.022		0.983		0.504		0.328


	(0.258	)	(0.282	)	(0.323	)	(0.294	)	(0.288	)
	(0.258	)	(0.282	)	(0.323	)	(0.294	)	(0.288	)

	$12.400		$11.850		$12.110		$11.450		$11.240

	6.89%		0.25%		8.70%		4.60%		2.95%


	$75,887		$60,398		$65,343		$40,232		$24,880
	1.60%		1.60%		1.60%		1.60%		1.60%

	1.67%		1.68%		1.70%		1.73%		1.73%
	2.13%		2.42%		2.74%		2.66%		2.53%

	2.06%		2.34%		2.64%		2.53%		2.40%
	39%		43%		27%		47%		28%

Financial highlights
Delaware Tax-Free USA Intermediate Fund Institutional Class

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Date of commencement of operations; ratios have been annualized and total return has not been annualized.

³ Portfolio turnover is representative of the Fund for the entire annual period.

See accompanying notes, which are an integral part of the financial statements.

						12/31/08¹
Year Ended						to
8/31/12		8/31/11		8/31/10		8/31/09
$11.970		$12.230		$11.460		$10.800


0.384		0.402		0.424		0.269
0.560		(0.260	)	0.770		0.660
0.944		0.142		1.194		0.929


(0.384	)	(0.402	)	(0.424	)	(0.269	)
(0.384	)	(0.402	)	(0.424	)	(0.269	)

$12.530		$11.970		$12.230		$11.460

8.00%		1.28%		10.62%		8.68%


$333,033		$281,256		$192,026		$1
0.60%		0.60%		0.60%		0.60%

0.67%		0.68%		0.70%		0.73%
3.13%		3.42%		3.74%		3.65%

3.06%		3.34%		3.64%		3.52%
39%		43%		27%		47%	³

Financial highlights
Delaware National High-Yield Municipal Bond Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$9.620		$10.090		$8.920		$9.510		$10.030


0.496		0.479		0.513		0.505		0.484
1.127		(0.474	)	1.169		(0.595	)	(0.520	)
1.623		0.005		1.682		(0.090	)	(0.036	)


(0.493	)	(0.475	)	(0.512	)	(0.500	)	(0.484	)
(0.493	)	(0.475	)	(0.512	)	(0.500	)	(0.484	)

$10.750		$9.620		$10.090		$8.920		$9.510

17.28%		0.23%		19.29%		(0.38%	)	(0.37%	)


$228,829		$140,629		$139,628		$68,812		$67,762
0.85%		0.85%		0.85%		0.90%		0.90%

0.99%		1.01%		1.04%		1.08%		1.04%
4.83%		5.03%		5.24%		6.06%		4.94%

4.69%		4.87%		5.05%		5.88%		4.80%
34%		57%		37%		67%		24%

Financial highlights
Delaware National High-Yield Municipal Bond Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$9.640		$10.110		$8.940		$9.530		$10.050


0.421		0.408		0.442		0.440		0.410
1.127		(0.474	)	1.169		(0.592	)	(0.520	)
1.548		(0.066	)	1.611		(0.152	)	(0.110	)


(0.418	)	(0.404	)	(0.441	)	(0.438	)	(0.410	)
(0.418	)	(0.404	)	(0.441	)	(0.438	)	(0.410	)

$10.770		$9.640		$10.110		$8.940		$9.530

16.39%		(0.51%	)	18.37%		(1.11%	)	(1.12%	)


$775		$768		$1,118		$1,448		$3,135
1.60%		1.60%		1.60%		1.65%		1.65%

1.74%		1.76%		1.79%		1.83%		1.79%
4.08%		4.28%		4.49%		5.31%		4.19%

3.94%		4.12%		4.30%		5.13%		4.05%
34%		57%		37%		67%		24%

Financial highlights
Delaware National High-Yield Municipal Bond Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$9.660		$10.130		$8.960		$9.550		$10.070


0.422		0.409		0.442		0.441		0.410
1.137		(0.474	)	1.169		(0.592	)	(0.520	)
1.559		(0.065	)	1.611		(0.151	)	(0.110	)


(0.419	)	(0.405	)	(0.441	)	(0.439	)	(0.410	)
(0.419	)	(0.405	)	(0.441	)	(0.439	)	(0.410	)

$10.800		$9.660		$10.130		$8.960		$9.550

16.47%		(0.51%	)	18.33%		(1.11%	)	(1.12%	)


$69,634		$44,497		$36,384		$7,770		$6,998
1.60%		1.60%		1.60%		1.65%		1.65%

1.74%		1.76%		1.79%		1.83%		1.79%
4.08%		4.28%		4.49%		5.31%		4.19%

3.94%		4.12%		4.30%		5.13%		4.05%
34%		57%		37%		67%		24%

Financial highlights
Delaware National High-Yield Municipal Bond Fund Institutional Class

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹ Date of commencement of operations; ratios have been annualized and total return has not been annualized.

³ Portfolio turnover is representative of the Fund for the entire annual period.

See accompanying notes, which are an integral part of the financial statements.

						12/31/08¹
Year Ended						to
8/31/12		8/31/11		8/31/10		8/31/09
$9.710		$10.190		$8.930		$7.590


0.527		0.506		0.534		0.342
1.137		(0.484	)	1.259		1.338
1.664		0.022		1.793		1.680


(0.524	)	(0.502	)	(0.533	)	(0.340	)
(0.524	)	(0.502	)	(0.533	)	(0.340	)

$10.850		$9.710		$10.190		$8.930

17.57%		0.41%		20.55%		22.55%


$125,661		$44,364		$16,840		$1
0.60%		0.60%		0.60%		0.65%

0.74%		0.76%		0.79%		0.85%
5.08%		5.28%		5.49%		6.41%

4.94%		5.12%		5.30%		6.21%
34%		57%		37%		67%	³

Notes to financial statements
Delaware Investments^® National Tax-Free Funds	August 31, 2012

Delaware Group^® Tax-Free Fund is organized as a Delaware statutory trust and offers two series: Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund. Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund and Delaware Tax-Free New York Fund. Delaware Group Tax-Free Fund and Voyageur Mutual Funds are individually referred to as a Trust and collectively as the Trusts. These financial statements and the related notes pertain to Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund (each referred to as a Fund or, collectively, as the Funds). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended. The Funds offer Class A, Class B, Class C and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of 4.50% for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, and 2.75% for Delaware Tax-Free USA Intermediate Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund; and of 0.75% for Delaware Tax-Free USA Intermediate Fund if redeemed within the first year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares of the Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares of the Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class B shares of Delaware Tax-Free USA Intermediate Fund were sold with a CDSC that declines from 2% to zero depending upon the period of time the shares were held. Class B shares of the Tax-Free USA Intermediate Fund will automatically convert to Class A shares on a quarterly basis approximately five years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.

The investment objective of the Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund is to seek as high a level of current interest income exempt from federal income tax as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital.

The investment objective of Delaware National Municipal Bond Fund is to seek a high level of current income exempt from federal income tax primarily through investment in medium- and lower-grade municipal obligations.

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Funds.

Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.

Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken on federal income tax returns for all open tax years (August 31, 2009–August 31, 2012), and has concluded that no provision for federal income tax is required in each Fund’s financial statements.

Class Accounting — Investment income and common expenses are allocated to the various classes of each Fund on the basis of “settled shares” of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.

Notes to financial statements
Delaware Investments^® National Tax-Free Funds

1. Significant Accounting Policies (continued)

Other — Expenses directly attributable to the Funds are charged directly to the Funds. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities using the effective interest method. Each Fund declares dividends daily from net investment income and pays the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. The Funds may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

The Funds may receive earnings credits from their transfer agent when positive cash balances are maintained, which are used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statements of operations with the corresponding expense offset shown as “expense paid indirectly.” For the year ended August 31, 2012, the Funds earned the following under this agreement:

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$337	$411	$116

2. Investment Management, Administration Agreements and Other Transactions with Affiliates

	Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
	USA Fund	USA Intermediate Fund	Municipal Bond Fund
On the first $500 million	0.550%	0.500%	0.550%
On the next $500 million	0.500%	0.475%	0.500%
On the next $1.5 billion	0.450%	0.450%	0.450%
In excess of $2.5 billion	0.425%	0.425%	0.425%

100

DMC has contractually agreed to waive that portion, if any, of its management fee and/or pay/reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations), do not exceed 0.56%, 0.60%, and 0.60% of average daily net assets of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High Yield Municipal Bond Fund, respectively, through December 28, 2012. For purposes of these waivers and reimbursements, nonroutine expenses may also include such additional costs and expenses, as may be agreed upon from time to time by each Fund’s Board and DMC. These expense waivers and reimbursement applies only to expenses paid directly by the Funds and may only be terminated by agreement of DMC and the Funds.

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, each Fund pays DSC fees based on the aggregate daily net assets of the Delaware Investments^® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Delaware Investments Family of Funds on a relative net asset value basis. For the year ended August 31, 2012, each Fund was charged for these services as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$31,549	$41,315	$14,699

DSC also provides dividend disbursing and transfer agency services. Each Fund pays DSC a monthly asset-based fee for these services.

Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee of 0.30% of the average daily net assets of the Class A shares for Delaware Tax-Free USA Intermediate Fund, 0.25% of the average daily net assets of the Class A shares for the Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund and 1.00% of the average daily net assets of the Class B and C for all the Funds. The Board for Delaware Tax-Free USA Fund has adopted a formula for calculating 12b-1 plan fees for the Fund’s Class A shares that went into effect on June 1, 1992. The Fund’s Class A shares are currently subject to a blended 12b-1 fee equal to the sum of: (i) 0.10% of average daily net assets representing shares acquired prior to June 1, 1992, and (ii) 0.25% of average daily net assets representing shares acquired on or after June 1, 1992. All Class A shares currently bear 12b-1 fees at the same rate, the blended rate, currently 0.24% of average daily net assets, based on the formula described above. This method of calculating Class A 12b-1 fees may be discontinued at the sole discretion of the Board. Institutional Class shares pay no distribution and service expenses. DDLP has contracted to waive distribution and service fees through December 28, 2012 in order to prevent distribution and service fees of Class A shares of 0.15% of average daily net assets for the Delaware Tax-Free USA Intermediate Fund.

101

Notes to financial statements
Delaware Investments^® National Tax-Free Funds

2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)

At August 31, 2012, each Fund had liabilities payable to affiliates as follows:

	Delaware Tax-Free		Delaware Tax-Free		Delaware National High-Yield
	USA Fund		USA Intermediate Fund		Municipal Bond Fund
Investment management fees
payable to DMC	$	260,952	$	296,798	$	135,721
Dividend disbursing, transfer
agent and fund accounting
oversight fees and other
expenses payable to DSC		15,386		20,499		9,583
Distribution fees payable
to DDLP		157,201		123,492		104,311
Other expenses payable to
DMC and affiliates*		16,677		25,860		7,806

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$17,839	$23,294	$8,076

For the year ended August 31, 2012, DDLP earned commissions on sales of Class A shares for each Fund as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$49,400	$24,638	$114,724

102

For the year ended August 31, 2012, DDLP received gross CDSC commissions on redemption of each Fund’s Class A, Class B and Class C shares, respectively. These commissions were entirely used to offset up-front commissions previously paid by DDLP to broker/dealer on sales of those shares. The amounts received were as follows:

	Delaware Tax-Free			Delaware Tax-Free			Delaware National High-Yield
	USA Fund			USA Intermediate Fund			Municipal Bond Fund
Class A		$	1,502		$	42		$	3,886
Class B			8			—			256
Class C			808			893			1,486

3. Investments

For the year ended August 31, 2012, the Fund made purchases and sales of investment securities other than short-term investments as follows:

	Delaware Tax-Free		Delaware Tax-Free		Delaware National High-Yield
	USA Fund		USA Intermediate Fund		Municipal Bond Fund
Purchases		$329,023,926		$388,387,914		$252,395,179
Sales		349,249,568		326,634,141		99,419,965

At August 31, 2012, the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes for each Fund were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware National High-Yield
	USA Fund				USA Intermediate Fund				Municipal Bond Fund
Cost of investments		$	588,095,457			$	798,404,262			$	389,096,901
Aggregate unrealized
appreciation		$	70,742,152			$	69,819,502			$	33,883,725
Aggregate unrealized
depreciation			(1,897,242	)			(331,525	)			(1,565,313	)
Net unrealized appreciation		$	68,844,910			$	69,487,977			$	32,318,412

103

Notes to financial statements
Delaware Investments^® National Tax-Free Funds

3. Investments (continued)

assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1 –	inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, exchange-traded options contracts)

Level 2 –	other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

Level 3 –	inputs are significant unobservable inputs (including the Funds’ own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

The following table summarizes the valuation of each Fund’s investments by fair value hierarchy levels as of August 31, 2012:

	Delaware Tax-Free			Delaware Tax-Free			Delaware National High-Yield
	USA Fund			USA Intermediate Fund			Municipal Bond Fund
	Level 2			Level 2			Level 2
Municipal Bonds		$	655,690,367		$	864,897,239		$	412,415,313
Short-Term investments			1,250,000			2,995,000			9,000,000
Total		$	656,940,367		$	867,892,239		$	421,415,313

104

4. Dividend and Distribution Information

	Delaware Tax-Free			Delaware Tax-Free			Delaware National High-Yield
	USA Fund			USA Intermediate Fund			Municipal Bond Fund
Year ended 8/31/12
Tax-exempt income		$	25,997,997		$	24,880,939		$	14,095,674
Ordinary income			52,761			11,932			48,201
Total		$	26,050,758		$	24,892,871		$	14,143,875

Year ended 8/31/11
Tax-exempt income		$	27,613,447		$	24,114,589		$	10,263,369
Ordinary income			358,078			2,942			62,675
Total		$	27,971,525		$	24,117,531		$	10,326,044

5. Components of Net Assets on a Tax Basis

As of August 31, 2012, the components of net assets on a tax basis were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware National High-Yield
	USA Fund				USA Intermediate Fund				Municipal Bond Fund
Shares of beneficial interest		$	589,080,107			$	811,637,025			$	396,208,945
Undistributed tax-exempt
income			767,431				648,621				461,447
Undistributed long-term
capital gains			3,215,358				—				—
Qualified late year
losses deferred			—				—				(39,718	)
Distributions payable			(638,536	)			(632,386	)			(434,550	)
Capital loss carryforward			—				(7,615,926	)			(3,615,640	)
Unrealized appreciation			68,844,910				69,487,977				32,318,412
Net assets		$	661,269,270			$	873,525,311			$	424,898,896

The differences between book basis and tax basis components of net assets are primarily attributable to tax treatment of distributions payable, and tax-treatment of market discount and premium on debt instruments.

105

Notes to financial statements
Delaware Investments^® National Tax-Free Funds

5. Components of Net Assets on a Tax Basis (continued)

Qualified late year losses represent losses realized on investment transactions from November 1, 2011 through August 31, 2012 that, in accordance with federal income tax regulations, each Fund has elected to defer and treat as having arisen in the following fiscal year.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on debt instruments and expired capital loss carryforwards. Results of operations and net assets were not affected by these reclassifications. For the year ended August 31, 2012, Delaware National High-Yield Municipal Bond Fund recorded the following reclassifications:

Accumulated net realized loss	$	1,037,034
Undistributed net investment income		(56,292	)
Paid-in capital		(980,742	)

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. For the year ended August 31, 2012, $980,742 of capital loss carryforwards expired for Delaware National High-Yield Municipal Bond Fund. For the year ended August 31, 2012, Delaware Tax-Free USA Fund utilized $3,756,823 capital loss carryforwards.

Capital loss carryforwards remaining at August 31, 2012 will expire as follows:

	Delaware Tax-Free			Delaware National High-Yield
Year of Expiration	USA Intermediate Fund			Municipal Bond Fund
2015		$	—		$	355,701
2017			5,428,954			374,735
Total		$	5,428,954		$	730,436

106

Losses incurred that will be carried forward under the Act are as follows:

	Loss Carryforward Character
	Short-term		Long-term
Delaware Tax-Free USA Intermediate Fund	$	2,186,972	$	—
Delaware National High-Yield Municipal Bond Fund		1,201,136		1,684,068

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware National High-Yield
	USA Fund				USA Intermediate Fund				Municipal Bond Fund
	Year Ended				Year Ended				Year Ended
	8/31/12		8/31/11		8/31/12		8/31/11		8/31/12		8/31/11
Shares sold:
Class A	2,104,528		12,484,657		9,140,856		12,048,279		9,508,392		7,142,758
Class B	2,456		10,773		191		1,840		2,294		78
Class C	585,541		611,323		1,755,047		1,214,750		2,707,511		2,060,169
Institutional Class	1,099,549		812,097		9,890,039		14,735,456		9,184,149		5,438,319

Shares issued upon reinvestment of dividends and distributions:
Class A	1,178,162		1,230,916		883,131		927,646		626,870		496,359
Class B	4,091		6,978		170		399		1,959		2,268
Class C	70,840		71,693		97,422		100,157		171,868		139,022
Institutional Class	29,539		19,047		429,900		312,696		154,112		91,520
	5,074,706		15,247,484		22,196,756		29,341,223		22,357,155		15,370,493

Shares redeemed:
Class A	(6,149,790	)	(11,598,972	)	(10,105,267	)	(15,161,183	)	(3,469,808	)	(6,856,305	)
Class B	(94,985	)	(242,438	)	(16,124	)	(23,446	)	(11,969	)	(33,245	)
Class C	(356,850	)	(584,014	)	(830,827	)	(1,613,958	)	(1,035,620	)	(1,183,041	)
Institutional Class	(469,114	)	(670,596	)	(7,234,869	)	(7,248,874	)	(2,326,733	)	(2,613,360	)
	(7,070,739	)	(13,096,020	)	(18,187,087	)	(24,047,461	)	(6,844,130	)	(10,685,951	)
Net increase (decrease)	(1,996,033	)	2,151,464		4,009,669		5,293,762		15,513,025		4,684,542

107

Notes to financial statements
Delaware Investments^® National Tax-Free Funds

6. Capital Shares (continued)

For the years ended August 31, 2012 and 2011, the following shares and values were converted from Class B to Class A shares. The respective amounts are included in Class B redemptions and Class A subscriptions in the tables above and the statements of changes in net assets.

		Year Ended				Year Ended
		8/31/12				8/31/11
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
USA Fund	43,994	44,077	$	511,259	118,554	118,448	$	1,326,828
Delaware Tax-Free
USA Intermediate Fund	5,885	5,877		71,118	6,359	6,353		73,094
Delaware National High-Yield
Municipal Bond Fund	3,567	3,578		35,790	12,827	12,848		121,021

7. Line of Credit

8. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in the Funds. At August 31, 2012, 3.01% of Delaware Tax-Free USA Fund’s net assets, 6.39% of Delaware Tax-Free USA Intermediate Fund’s net assets, and 2.04% of Delaware National High-Yield Municipal Bond Fund’s net assets were insured by bond insurers. These securities have been identified in the statements of net assets.

108

As of August 31, 2012, Delaware Tax-Free USA Fund invested in municipal bonds issued by the states of California and New York which constituted approximately 12.93% and 22.20%, respectively, of the Fund’s portfolio. As of August 31, 2012, Delaware Tax-Free USA Intermediate Fund invested in municipal bonds issued by the states of California and New York which constituted approximately 10.99% and 14.11%, respectively, of the Fund’s portfolio. As of August 31, 2012, Delaware National High-Yield Municipal Bond Fund invested in municipal bonds issued by the states of California and New York, which constituted approximately 11.15% and 12.71%, respectively, of the Fund’s portfolio. These investments could make each Fund more sensitive to economic conditions in those states than other more geographically diversified national municipal income funds.

Each Fund may invest a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s (S&P) and Baa3 by Moody’s Investor Services, Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.

The Funds may invest in advanced refunded bonds, escrow secured bonds or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding”. “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest bearing debt securities which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.

Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.

109

Notes to financial statements
Delaware Investments^® National Tax-Free Funds

8. Credit and Market Risk (continued)

Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Fund’s Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. Rule 144A and illiquid securities have been identified on the statements of net assets.

9. Contractual Obligations

10. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to August 31, 2012 that would require recognition or disclosure in the Funds’ financial statements.

110

Report of independent
registered public accounting firm

To the Board of Trustees of Delaware Group^® Tax-Free Fund and Voyageur Mutual Funds and the Shareholders of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund:

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund (constituting Delaware Group Tax-Free Fund) and Delaware National High-Yield Municipal Bond Fund (one of the series constituting Voyageur Mutual Funds) (hereafter collectively referred to as the “Funds”) at August 31, 2012, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2012 by correspondence with the custodian and broker, provide a reasonable basis for our opinion. The financial highlights for each of the two years in the period ended August 31, 2009 were audited by other independent accountants whose report dated October 19, 2009 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 18, 2012

111

Other Fund information
(Unaudited)
Delaware Investments^® National Tax-Free Funds

Board Consideration of Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund Investment Advisory Agreements

At a meeting held on August 21-23, 2012 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreements for each of the Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Advisory Agreements with Delaware Management Company (“DMC”) included materials provided by DMC and its affiliates (“Delaware Investments”) concerning, among other things, the nature, extent and quality of services provided to the Funds, the costs of such services to the Funds, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided in May 2012 and included independent historical and comparative reports provided by Lipper, Inc., an independent statistical compilation organization (“Lipper”). The Lipper reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Lipper reports with independent legal counsel to the Independent Trustees. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; comparative client fee information; and any constraints or limitations on the availability of securities in certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, DMC’s ability to invest fully in accordance with Fund policies.

112

pricing procedures as established by the Board. The Board was pleased with the current staffing of the Funds’ investment advisor and the emphasis placed on research in the investment process. The Board recognized DMC’s receipt of several industry awards, including being named best fund family for 2011 by Barron’s and best mixed asset small company by Lipper for the second year in a row. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to fund matters. The Board noted that in July 2011 Management implemented measures to reduce overall costs and improve transfer agent and shareholder servicing functions through outsourcing. The Board noted the benefits provided to Fund shareholders through each shareholder’s ability to exchange an investment in one Delaware Investments fund for the same class of shares in another Delaware Investments fund without a sales charge, to reinvest Fund dividends into additional shares of the same Fund or into additional shares of other Delaware Investments funds and the privilege to combine holdings in other Delaware Investments funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

Investment Performance. The Board placed significant emphasis on the investment performance of the Funds in view of the importance of investment performance to shareholders. Although the Board gave appropriate consideration to performance reports and discussions with portfolio managers at Investment Committee meetings throughout the year, the Board gave particular weight to the Lipper reports furnished for the Annual Meeting. The Lipper reports prepared for each Fund showed the investment performance of its Class A shares in comparison to a group of similar funds as selected by Lipper (the “Performance Universe”). A fund with the best performance ranked first, and a fund with the poorest performance ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the poorest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for each Fund was shown for the past one-, three-, five- and ten-year periods, as applicable, ended March 31, 2012. The Board’s objective is that each Fund’s performance for the periods considered be at or above the median of its Performance Universe. The following paragraphs summarize the performance results for the Funds and the Board’s view of such performance.

Delaware National High-Yield Municipal Bond Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional high yield municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-, three-, five- and ten-year periods was in the first quartile of its Performance Universe. The Board was satisfied with performance.

Delaware Tax-Free USA Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional general municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-, three- and five-year periods was in the second quartile of its Performance Universe. The report further showed that the Fund’s total return for the ten-year period was in the first quartile. The Board was satisfied with performance.

113

Other Fund information
(Unaudited)
Delaware Investments^® National Tax-Free Funds

Board Consideration of Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund Investment Advisory Agreements (continued)

Delaware Tax-Free USA Intermediate Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional intermediate municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one- and three-year periods was in the second quartile of its Performance Universe. The report further showed that the Fund’s total return for the five- and ten-year periods was in the third and first quartiles, respectively. The Board was satisfied with performance.

Comparative Expenses. The Board considered expense comparison data for the Delaware Investments Family of Funds. Management provided the Board with information on pricing levels and fee structures for each Fund as of its most recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of each Fund versus effective management fees and expense ratios of a group of similar funds as selected by Lipper (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) within the Expense Group, taking into account any applicable breakpoints and fee waivers. Each Fund’s total expenses were also compared with those of its Expense Group. The Lipper total expenses, for comparative consistency, were shown by Lipper for Class A shares and comparative total expenses including 12b-1 and non 12b-1 service fees. The Board considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit each Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraphs summarize the expense results for the Funds and the Board’s view of such expenses.

Delaware National High-Yield Municipal Bond Fund — The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Lipper report.

Delaware Tax-Free USA Fund — The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Lipper report.

Delaware Tax-Free USA Intermediate Fund — The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the second lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Lipper report.

114

Management Profitability. The Board considered the level of profits realized by Delaware Investments in connection with the operation of the Funds. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the individual funds and the Delaware Investments Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability. Management stated that the level of profits of Delaware Investments, to a certain extent, reflects recent operational cost savings and efficiencies initiated by Delaware Investments. The Board considered Delaware Investments’ efforts to improve services provided to fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide Securities and Exchange Commission initiatives. The Board also considered the extent to which Delaware Investments might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Investments Family of Funds and the benefits from allocation of fund brokerage to improve trading efficiencies. The Board found that the management fees were reasonable in light of the services rendered and the level of profitability of Delaware Investments.

Economies of Scale. The Trustees considered whether economies of scale are realized by Delaware Investments as each Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fees charged. The Trustees reviewed the standardized advisory fee pricing and structure, approved by the Board and shareholders, which includes breakpoints. Breakpoints in the advisory fee occur when the advisory fee rate is reduced on assets in excess of specified levels. Breakpoints result in a lower advisory fee than would otherwise be the case on all assets when the asset levels specified are exceeded. The Board noted that the fee under each Fund’s management contract fell within the standard structure. Although the Delaware National High-Yield Municipal Bond Fund has not reached a size at which it can take advantage of breakpoints, the Board recognized that the Fund’s fee was structured so that when the Fund grows, economies of scale may be shared. The Board also noted that the Delaware Tax-Free USA Fund’s and the Delaware Tax-Free USA Intermediate Fund’s assets exceeded the first breakpoint level. The Board believed that, given the extent to which economics of scale might be realized by the advisor and its affiliates, the schedule of fees under the Investment Advisory Agreements provide a sharing of benefits with the Funds and their shareholders.

115

Other Fund information
(Unaudited)
Delaware Investments^® National Tax-Free Funds

Tax Information

The information set forth below is for each Fund’s fiscal year as required by federal laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of a fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information. All designations are based on financial information available as of the date of this annual report and, accordingly are subject to change. For any and all items requiring designation, it is the intention of the Funds to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

For the fiscal year ended August 31, 2012, each Fund designates distributions paid during the year as follows:

	(A)	(B)
	Ordinary Income	Tax-Exempt	Total
	Distributions	Distributions	Distributions
	(Tax Basis)*	(Tax Basis)	(Tax Basis)
Delaware Tax-Free USA Fund	0.20%	99.80%	100.00%
Delaware Tax-Free USA Intermediate Fund	0.05%	99.95%	100.00%
Delaware National High-Yield Municipal Bond Fund	0.34%	99.66%	100.00%

(A) and (B) are based on a percentage of each Fund’s total distributions.

For the fiscal year ended August 31, 2012, certain interest income paid by the Funds, determined to be Qualified Interest Income may be subject to relief from U.S. withholding for foreign shareholders, as provided by the American Jobs Creation Act of 2004. For the fiscal year ended August 31, 2012, the Funds have designated maximum Qualified Interest Income distributions as follows:

	Delaware Tax-Free		Delaware National High-Yield
	USA Fund		Municipal Bond Fund
	100%		100%

116

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Interested Trustees

Patrick P. Coyne¹	Chairman, President,	Chairman and Trustee
2005 Market Street	Chief Executive Officer,	since August 16, 2006
Philadelphia, PA 19103	and Trustee
April 1963		President and
		Chief Executive Officer
		since August 1, 2006

¹Patrick P. Coyne is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.

118

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Patrick P. Coyne has served in	71	Director and Audit
various executive capacities		Committee Member
at different times at		Kaydon Corp.
Delaware Investments.²
		Board of Governors Member
		Investment Company
		Institute (ICI)

119

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees

Thomas L. Bennett	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
October 1947

John A. Fry	Trustee	Since January 2001
2005 Market Street
Philadelphia, PA 19103
May 1960











Anthony D. Knerr	Trustee	Since April 1990
2005 Market Street
Philadelphia, PA 19103
December 1938

Lucinda S. Landreth	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
June 1947

120

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Private Investor	71	Director
(March 2004–Present)		Bryn Mawr Bank Corp. (BMTC)
		(2007–2011)


President	71	Board of Governors Member —
Drexel University		NASDAQ OMX PHLX LLC
(August 2010–Present)
		Director and Audit
President		Committee Member
Franklin & Marshall College		Community Health Systems
(July 2002–July 2010)
		Director — Ecore
		International
		(2009–2010)

		Director — Allied
		Barton Securities Holdings
		(2005–2008)

Managing Director	71	None
Anthony Knerr & Associates
(Strategic Consulting)
(1990–Present)

Private Investor	71	None
(2004–Present)

121

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)

Frances A. Sevilla-Sacasa	Trustee	Since September 2011
2005 Market Street
Philadelphia, PA 19103
January 1956

122

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Chief Executive Officer —	71	Trust Manager — Camden
Banco Itaú Europa		Property Trust
International		(since August 2011)
(since April 2012)

Executive Advisor to Dean
(August 2011–March 2012)
and Interim Dean
(January 2011–July 2011) —
University of Miami School of
Business Administration

President — U.S. Trust,
Bank of America Private
Wealth Management
(Private Banking)
(July 2007–December 2008)

123

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)

Janet L. Yeomans	Trustee	Since April 1999
2005 Market Street
Philadelphia, PA 19103
July 1948







J. Richard Zecher	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
July 1940

124

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Vice President and Treasurer	71	Director, Audit
(January 2006–July 2012)		Committee Member and
Vice President — Mergers & Acquisitions		Investment Committee
(January 2003–January 2006), and		Member
Vice President and Treasurer		Okabena Company
(July 1995–January 2003)
3M Corporation		Chair — 3M
		Investment Management
		Company
		(January 2005–July 2012)

Founder	71	Director and Compensation
Investor Analytics		Committee Member
(Risk Management)		Investor Analytics
(May 1999–Present)
		Director
Founder		Oxigene, Inc.
P/E Investments		(2003–2008)
(Hedge Fund)
(September 1996–Present)

125

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Officers

David F. Connor	Vice President,	Vice President since
2005 Market Street	Deputy General	September 2000
Philadelphia, PA 19103	Counsel, and Secretary	and Secretary since
December 1963		October 2005


Daniel V. Geatens	Vice President	Treasurer
2005 Market Street	and Treasurer	since October 2007
Philadelphia, PA 19103
October 1972

David P. O’Connor	Executive Vice President,	Executive Vice President
2005 Market Street	General Counsel	since February 2012;
Philadelphia, PA 19103	and Chief Legal Officer	Senior Vice President
February 1966		October 2005–
		February 2012;
		General Counsel and
		Chief Legal Officer
		since October 2005

Richard Salus	Senior Vice President	Chief Financial Officer
2005 Market Street	and Chief Financial Officer	since November 2006
Philadelphia, PA 19103
October 1963

The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 523-1918.

126

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


David F. Connor has served as	71	None³
Vice President and Deputy
General Counsel of
Delaware Investments
since 2000.

Daniel V. Geatens has served	71	None³
in various capacities at
different times at
Delaware Investments.

David P. O’Connor has served in	71	None³
various executive and legal
capacities at different times
at Delaware Investments.





Richard Salus has served in	71	None³
various executive capacities
at different times at
Delaware Investments.

127

About the organization

Board of trustees
Patrick P. Coyne Chairman, President, and Chief Executive Officer Delaware Investments^® Family of Funds Philadelphia, PA Thomas L. Bennett Private Investor Rosemont, PA	John A. Fry President Drexel University Philadelphia, PA Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY	Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA Frances A. Sevilla-Sacasa Chief Executive Officer Banco Itaú Europa International Miami, FL	Janet L. Yeomans Former Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ

Affiliated officers
David F. Connor Vice President, Deputy General Counsel, and Secretary Delaware Investments Family of Funds Philadelphia, PA	Daniel V. Geatens Vice President and Treasurer Delaware Investments Family of Funds Philadelphia, PA	David P. O’Connor Executive Vice President, General Counsel, and Chief Legal Officer Delaware Investments Family of Funds Philadelphia, PA	Richard Salus Senior Vice President and Chief Financial Officer Delaware Investments Family of Funds Philadelphia, PA

This annual report is for the information of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawareinvestments.com.

Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.

128

Annual report

Delaware Tax-Free Arizona Fund
Delaware Tax-Free California Fund
Delaware Tax-Free Colorado Fund
Delaware Tax-Free Idaho Fund
Delaware Tax-Free New York Fund

August 31, 2012

Fixed income mutual funds

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectuses and, if available, their summary prospectuses, which may be obtained by visiting delawareinvestments.com or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.

You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit delawareinvestments.com/edelivery.

Experience Delaware Investments

If you are interested in learning more about creating an investment plan, contact your financial advisor.

You can learn more about Delaware Investments or obtain a prospectus for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund at delawareinvestments.com.

Manage your investments online

24-hour access to your account information
Obtain share prices
Check your account balance and recent transactions
Request statements or literature
Make purchases and redemptions

Investments in Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

Table of contents
Portfolio management review		1
Performance summaries		7
Disclosure of Fund expenses		22
Security type/sector allocations		25
Statements of net assets		30
Statements of operations		72
Statements of changes in net assets		74
Financial highlights		84
Notes to financial statements		114
Report of independent registered
public accounting firm		128
Other Fund information		129
Board of trustees/directors and
officers addendum		136
About the organization		146

Unless otherwise noted, views expressed herein are current as of Aug. 31, 2012, and subject to change.

Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.

All third-party marks cited are the property of their respective owners.

Portfolio management review
Delaware Investments^® state tax-free funds	September 11, 2012

Performance preview (for the year ended August 31, 2012)
Delaware Tax-Free Arizona Fund (Class A shares)	1-year return	+10.15	%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78	%
Lipper Arizona Municipal Debt Funds Average	1-year return	+10.68	%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Tax-Free Arizona Fund, please see the table on page 7.

The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper Arizona Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Arizona (double tax-exempt) or a city in Arizona (triple tax-exempt).

Delaware Tax-Free California Fund (Class A shares)	1-year return	+13.90	%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78	%
Lipper California Municipal Debt Funds Average	1-year return	+12.44	%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Tax-Free California Fund, please see the table on page 10.

The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper California Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in California (double tax-exempt) or a city in California (triple tax-exempt).

Delaware Tax-Free Colorado Fund (Class A shares)	1-year return	+11.23	%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78	%
Lipper Colorado Municipal Debt Funds Average	1-year return	+10.01	%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Tax-Free Colorado Fund, please see the table on page 13.

The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper Colorado Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Colorado (double tax-exempt) or a city in Colorado (triple tax-exempt).

Portfolio management review
Delaware Investments^® state tax-free funds

Delaware Tax-Free Idaho Fund (Class A shares)	1-year return	+8.21	%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78	%
Lipper Other States Municipal Debt Funds Average	1-year return	+9.03	%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Tax-Free Idaho Fund, please see the table on page 16.

The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper Other States Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation on a specified city or state basis.

Delaware Tax-Free New York Fund (Class A shares)	1-year return	+12.18	%
Barclays Municipal Bond Index (benchmark)	1-year return	+8.78	%
Lipper New York Municipal Debt Funds Average	1-year return	+10.06	%

Past performance does not guarantee future results.

For complete, annualized performance for Delaware Tax-Free New York Fund, please see the table on page 19.

The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper New York Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in New York (double tax-exempt) or a city in New York (triple tax-exempt).

Economic backdrop

By the second half of the Funds’ fiscal year, however, it became clear that the economy’s momentum was stalling:

U.S. gross domestic product (GDP) — a measure of the goods and services produced by the nation — grew at an annualized rate of just 2.0% in the first quarter of 2012, down from 4.1% in the previous three-month period. In the second quarter of 2012, the rate of GDP growth slowed further, to an estimated 1.7%.
Job creation remained persistently sluggish, as the unemployment rate fluctuated within a historically high range of 8.1% to 8.3% between January and August 2012.

(Data: U.S. Commerce Department; U.S. Labor Department)

Economic conditions within each state, briefly noted

Arizona’s diverse economy is slowly recovering from the global financial crisis of 2008-2009 that has shaken economies for the past several years. Weakness remains likely in the short term, due largely to the damaging effects of a protracted housing bubble. Other notable developments:

July’s nonfarm employment reading of 2.39 million was up 2.4% from July 2011, higher than the nation’s 1.4% gain. Unemployment figures have begun to improve, with a July 2012 unemployment rate of 8.3% (compared to a rate of 9.4% one year earlier).
State revenues totaled $9.8 billion for fiscal 2011, an 18% increase from the year before. This was mostly accounted for by sales taxes and income taxes. Through the first 11 months of fiscal 2012, revenues are coming in 0.8% higher than expected and 6% higher than fiscal 2011.

(Data: U.S. Labor Department; Moody’s Investors Service)

California enjoys a large, diverse, and wealthy economy that accounts for 13% of U.S. gross domestic product. It shares much of the economic unsteadiness that has been felt nationwide. While the state’s unemployment rate has improved somewhat (from 12% in July 2011 to 10.7% in July 2012), it remains well above the national rate.

The governor signed a $91.3 billion 2013 General Fund budget that closed a $15.7 billion budget gap through revenue increases and expenditure cuts. In total, the budget reduces expenditures by $8.1 billion. The majority of the spending cuts are focused on health and human services, education, and the court system. If temporary taxes (which will be put to a popular vote in November 2012) are not approved, an additional $5.95 billion in cuts will be triggered. These cuts would be effective January 1, 2013.

(Data: U.S. Labor Department; California State Controller monthly financial reports; Moody’s Investors Service)

Colorado maintains a diverse economy, with a variety of strengths in the broad service sector. Generally speaking, Colorado remains a wealthy state, with per-capita income equal to 105% of the national average. The state’s nonfarm employment reading for July 2012 came in at 2.3 million, up by 1.6% from July 2011. Total revenues for fiscal 2012 are estimated to increase by 7.8% over fiscal 2011. For fiscal 2013, the state’s budget of $7.4 billion represents a 5.8% increase over fiscal 2012.

(Data: U.S. Labor Department; Colorado Office of State Planning and Budgeting; Moody’s Investors Service)

Portfolio management review
Delaware Investments^® state tax-free funds

In Idaho, July 2012 nonfarm employment came in at 619,000, up 1.3% from July 2011. Idaho’s economy continued to grow more diversified; however, it still has an above-average dependence on the natural resource sector.

Idaho’s governor signed a $2.7 billion 2013 General Fund budget in April 2012, representing a 6.8% increase over fiscal 2012. The budget includes $36 million in tax relief that reduces the top corporate and individual tax rates from 7.6% and 7.8%, respectively, to 7.4% each.

(Data: U.S. Labor Department; Idaho Division of Financial Management; www.sco.idaho.gov)

New York continued to exhibit a mature, broad-based, and wealthy economy that typically attracts a highly educated and global workforce. July 2012 readings for nonfarm employment came in at 8.84 million, up 1.3% from July 2011. Other notable circumstances:

The state’s unemployment rate in July 2012 was 9.1%, higher than the national rate and above the state’s July 2011 rate of 8%.
Revenues for the state’s 2012 fiscal year totaled $56.9 billion, 4.6% higher than fiscal 2011 but $314 million lower than projections.
The state ended fiscal 2012 with a General Fund balance of $1.79 billion, an increase over fiscal 2011.
Lawmakers signed off on a $132.6 billion budget that cuts spending by $135 million and includes no new taxes.
The budget closes what was once a $3.5 billion deficit, a process made easier when lawmakers in December approved a tax increase on joint earners earning at least $2 million annually.

(Data: U.S. Labor Department; New York State Division of the Budget; Moody’s Investors Service; New York State Comptroller)

Municipal bond market conditions

Another factor helping to lift municipal bond prices was a favorable relationship between supply and demand. The relatively limited supply of tax-exempt bonds, paired with extremely strong demand from some investors, provided support for the asset class. Several factors fueled the demand side of the equation. First, there were heavy flows back into investors’ hands through bond redemptions. Second, new inflows into municipal bond mutual funds remained high, as did demand from institutional investors. Institutional investors don’t often purchase municipal securities and don’t traditionally drive the market, but in this case they likely saw certain municipal bonds offering unusually attractive values relative to comparable opportunities among taxable bonds.

Another factor underlying the demand for municipal securities was investors’ search for higher yield in a low interest rate environment. Accordingly, bonds that exhibited higher yields, including those with longer maturities and lower credit ratings, generally outperformed their

counterparts. In fact, the best-performing maturity range of the municipal bond market (as measured by the Barclays Municipal Bond Index) was 22 years and longer, which gained 14.52%, compared with an advance of just 0.89% for bonds with maturities of less than two years. Similarly, BBB-rated bonds were up 15.40% for the same time period, compared with a gain of just 6.07% for the AAA segment within that index.

Maintaining a consistent strategy

Our comfort level with the Funds’ elevated weighting in relatively credit-sensitive securities stems from the thoroughness of our credit research process and our confidence in its ability to identify tax-exempt securities that offer a positive risk-versus-reward tradeoff.

Notable sectors and securities

As mentioned earlier, bonds with longer maturity dates and relatively lower credit ratings generally performed better, a phenomenon reflected in breakdowns of market performance by maturity and by credit rating.

The outperformance of lower-rated bonds proved favorable for our style of investing. The strongest individual contributors to each of the Funds’ total-return results were notable for being representative of the trend in which long-dated, lower-credit-quality issues enjoyed a performance advantage.

The two strongest-performing individual contributors in Delaware Tax-Free Arizona Fund included healthcare bonds for the John C. Lincoln Hospital in Glendale, maturing in 2042 and rated BBB by Standard & Poor’s (S&P). Outperformers also included education bonds for Tucson Country Day School in Pima County, maturing in 2037 and rated BBB- by S&P. Among the Fund’s weakest contributors were AA-rated civic improvement bonds for a Phoenix light-rail transit project

Portfolio management review
Delaware Investments^® state tax-free funds

and AAA-rated Arizona State Transportation Board highway revenue bonds. Both bonds struggled as their higher quality ratings made them less desirable to increasingly risk-tolerant investors. These securities contributed relatively weakly to the Fund’s overall return but nevertheless recorded positive gains.

Within Delaware Tax-Free California Fund, lower-rated, longer-dated securities once again provided the biggest support to Fund returns. The strongest contributors included nonrated Modesto County special tax bonds maturing in 2036 and Golden State tobacco securitization bonds maturing in 2047. To highlight the importance of maturity date on bond performance during the fiscal year, we note that the Fund’s positions in other Golden State tobacco securitization bonds, which were scheduled to mature in 2013, achieved very modest returns.

Within Delaware Tax-Free Colorado Fund, the strongest performers included Denver Health & Hospital Authority healthcare bonds, which were rated BBB by S&P and scheduled to mature in 2036. In addition, Denver Convention Center Hotel Authority revenue bonds, rated BBB- by S&P and maturing in 2035, made a significant contribution to performance. In contrast, notably weaker performers included two school district bonds, both of which carried near-term maturity dates that may have limited their attractiveness to many investors.

Within Delaware Tax-Free Idaho Fund, the strongest contributors included Virgin Islands Public Finance Authority revenue bonds (rated BBB by S&P and maturing in 2029), as well as nonrated developmental district bonds maturing in 2034. In both cases, relatively low ratings and long maturity dates helped performance. On the other hand, the Fund’s weakest-performing bonds included revenue bonds for Idaho State University (rated AA+ by S&P and maturing in 2020), and Bannock County school district bonds (rated Aaa by Moody’s Investors Service (Moody’s) and maturing in 2015). We believe both issues were held back by their high credit quality and near-term maturity dates.

Finally, the strongest-performing bonds within Delaware Tax-Free New York Fund included nonrated bonds issued by the East Rochester Housing Authority for Woodland Village (a continuing care retirement community), and industrial development bonds for Brighter Choice Charter School in Albany (rated BBB- by Fitch and maturing in 2037). Relatively weaker performers, meanwhile, included Battery Park City municipal lease bonds (with a 2014 call date and AAA rating by S&P) and Puerto Rico highway general obligation bonds (with a 2016 call date and Aaa rating by Moody’s). These securities appeared to be out of favor in the marketplace, given their high credit ratings and short maturity dates.

Performance summaries
Delaware Tax-Free Arizona Fund	August 31, 2012

Fund performance^1,2	Average annual total returns through Aug. 31, 2012
		1 year		5 years		10 years
Class A (Est. April 1, 1991)
Excluding sales charge		+10.15	%	+5.81	%	+4.78	%
Including sales charge		+5.23	%	+4.84	%	+4.30	%
Class B (Est. March 10, 1995)
Excluding sales charge		+9.42	%	+5.04	%	+4.15	%
Including sales charge		+5.42	%	+4.79	%	+4.15	%
Class C (Est. May 26, 1994)
Excluding sales charge		+9.31	%	+5.03	%	+4.00	%
Including sales charge		+8.31	%	+5.03	%	+4.00	%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 8. Performance would have been lower had expense limitations not been in effect.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B shares. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Performance summaries
Delaware Tax-Free Arizona Fund

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.59% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/ or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.93%	1.68%	1.68%
(without fee waivers)
Net expenses	0.84%	1.59%	1.59%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual

Performance of a $10,000 investment¹Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value	Ending value
	Barclays Municipal Bond Index	$10,000	$16,596
	Delaware Tax-Free Arizona Fund — Class A shares	$9,550	$15,239

¹ The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 8. Please note additional details on pages 7 through 9.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		VAZIX	928916204
Class B		DVABX	928928639
Class C		DVACX	928916501

Performance summaries
Delaware Tax-Free California Fund	August 31, 2012

Fund performance^1,2	Average annual total returns through Aug. 31, 2012
		1 year	5 years	10 years
Class A (Est. March 2, 1995)
Excluding sales charge		+13.90%	+6.56%	+5.48%
Including sales charge		+8.73%	+5.58%	+5.00%
Class B (Est. Aug. 23, 1995)
Excluding sales charge		+13.10%	+5.75%	+4.84%
Including sales charge		+9.10%	+5.51%	+4.84%
Class C (Est. April 9, 1996)
Excluding sales charge		+13.13%	+5.76%	+4.70%
Including sales charge		+12.13%	+5.76%	+4.70%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 11. Performance would have been lower had expense limitations not been in effect.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B shares. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.57% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/ or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.98%	1.73%	1.73%
(without fee waivers)
Net expenses	0.82%	1.57%	1.57%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual

Performance summaries
Delaware Tax-Free California Fund

Performance of a $10,000 investment¹Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value	Ending value
	Barclays Municipal Bond Index	$10,000	$16,596
	Delaware Tax-Free California Fund — Class A shares	$9,550	$16,282

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 11. Please note additional details on pages 10 through 12.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		DVTAX	928928829
Class B		DVTFX	928928811
Class C		DVFTX	928928795

Delaware Tax-Free Colorado Fund

August 31, 2012

Fund performance^1,2	Average annual total returns through Aug. 31, 2012
		1 year	5 years	10 years
Class A (Est. April 23, 1987)
Excluding sales charge		+11.23%	+5.95%	+4.93%
Including sales charge		+6.25%	+4.97%	+4.45%
Class B (Est. March 22, 1995)
Excluding sales charge		+10.41%	+5.18%	+4.30%
Including sales charge		+6.41%	+4.93%	+4.30%
Class C (Est. May 6, 1994)
Excluding sales charge		+10.39%	+5.17%	+4.15%
Including sales charge		+9.39%	+5.17%	+4.15%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 14. Performance would have been lower had expense limitations not been in effect.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B shares. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Performance summaries
Delaware Tax-Free Colorado Fund

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.59% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.95%	1.70%	1.70%
(without fee waivers)
Net expenses	0.84%	1.59%	1.59%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual

Performance of a $10,000 investment¹Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value	Ending value
	Barclays Municipal Bond Index	$10,000	$16,596
	Delaware Tax-Free Colorado Fund — Class A shares	$9,550	$15,461

¹The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 14. Please note additional details on pages 13 through 15.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		VCTFX	928920107
Class B		DVBTX	928928787
Class C		DVCTX	92907R101

Performance summaries
Delaware Tax-Free Idaho Fund	August 31, 2012

Fund performance^1,2	Average annual total returns through Aug. 31, 2012
		1 year	5 years	10 years
Class A (Est. Jan. 4, 1995)
Excluding sales charge		+8.21%	+5.60%	+4.82%
Including sales charge		+3.36%	+4.64%	+4.34%
Class B (Est. March 16, 1995)
Excluding sales charge		+7.41%	+4.83%	+4.19%
Including sales charge		+3.41%	+4.58%	+4.19%
Class C (Est. Jan. 11, 1995)
Excluding sales charge		+7.41%	+4.82%	+4.04%
Including sales charge		+6.41%	+4.82%	+4.04%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 17. Performance would have been lower had expense limitations not been in effect.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B shares. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.63% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.96%	1.71%	1.71%
(without fee waivers)
Net expenses	0.88%	1.63%	1.63%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual

Performance summaries
Delaware Tax-Free Idaho Fund

Performance of a $10,000 investment¹Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value	Ending value
	Barclays Municipal Bond Index	$10,000	$16,596
	Delaware Tax-Free Idaho Fund — Class A shares	$9,550	$15,295

¹ The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 17. Please note additional details on pages 16 through 18.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		VIDAX	928928704
Class B		DVTIX	928928746
Class C		DVICX	928928803

Delaware Tax-Free New York Fund

August 31, 2012

Fund performance^1,2	Average annual total returns through Aug. 31, 2012
		1 year	5 years	10 years
Class A (Est. Nov. 6, 1987)
Excluding sales charge		+12.18%	+6.62%	+5.50%
Including sales charge		+7.12%	+5.63%	+5.01%
Class B (Est. Nov. 14, 1994)
Excluding sales charge		+11.36%	+5.83%	+4.86%
Including sales charge		+7.36%	+5.59%	+4.86%
Class C (Est. April 26, 1995)
Excluding sales charge		+11.26%	+5.81%	+4.72%
Including sales charge		+10.26%	+5.81%	+4.72%

¹ Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund performance” chart. The current expenses for each class are listed on the “Fund expense ratios” table on page 20. Performance would have been lower had expense limitations not been in effect.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B shares. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Performance summaries
Delaware Tax-Free New York Fund

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

Bond ratings are determined by a nationally recognized statistical rating organization.

² The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding certain fees and expenses) from exceeding 0.55% of the Fund’s average daily net assets from Dec. 29, 2011, through Dec. 28, 2012. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	1.05%	1.80%	1.80%
(without fee waivers)
Net expenses	0.80%	1.55%	1.55%
(including fee waivers, if any)
Type of waiver	Contractual	Contractual	Contractual

Performance of a $10,000 investment¹Average annual total returns from Aug. 31, 2002, through Aug. 31, 2012

For period beginning Aug. 31, 2002, through Aug. 31, 2012		Starting value	Ending value
	Barclays Municipal Bond Index	$10,000	$16,596
	Delaware Tax-Free New York Fund — Class A shares	$9,550	$16,311

¹ The “Performance of a $10,000 investment” graph assumes $10,000 invested in Class A shares of the Fund on Aug. 31, 2002, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 20. Please note additional details on pages 19 through 21.

Performance of other Fund classes will vary due to different charges and expenses.

	Nasdaq symbols		CUSIPs
Class A		FTNYX	928928274
Class B		DVTNX	928928266
Class C		DVFNX	928928258

Disclosure of Fund expenses
For the six-month period from March 1, 2012 to August 31, 2012 (Unaudited)

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from March 1, 2012 to August 31, 2012.

Actual expenses

Hypothetical example for comparison purposes

The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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 each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Delaware Tax-Free Arizona Fund
Expense analysis of an investment of $1,000

	Beginning			Ending						Expenses
	Account Value			Account Value			Annualized			Paid During Period
	3/1/12			8/31/12			Expense Ratio			3/1/12 to 8/31/12*
Actual Fund return
Class A		$	1,000.00		$	1,037.10		0.84	%		$	4.30
Class B			1,000.00			1,034.10		1.59	%			8.13
Class C			1,000.00			1,033.10		1.59	%			8.13
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.91		0.84	%		$	4.27
Class B			1,000.00			1,017.14		1.59	%			8.06
Class C			1,000.00			1,017.14		1.59	%			8.06

Delaware Tax-Free California Fund
Expense analysis of an investment of $1,000

	Beginning			Ending						Expenses
	Account Value			Account Value			Annualized			Paid During Period
	3/1/12			8/31/12			Expense Ratio			3/1/12 to 8/31/12*
Actual Fund return
Class A		$	1,000.00		$	1,050.30		0.82	%		$	4.23
Class B			1,000.00			1,047.10		1.57	%			8.08
Class C			1,000.00			1,047.20		1.57	%			8.08
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,021.01		0.82	%		$	4.17
Class B			1,000.00			1,017.24		1.57	%			7.96
Class C			1,000.00			1,017.24		1.57	%			7.96

Delaware Tax-Free Colorado Fund
Expense analysis of an investment of $1,000

	Beginning			Ending						Expenses
	Account Value			Account Value			Annualized			Paid During Period
	3/1/12			8/31/12			Expense Ratio			3/1/12 to 8/31/12*
Actual Fund return
Class A		$	1,000.00		$	1,033.30		0.84	%		$	4.29
Class B			1,000.00			1,029.50		1.59	%			8.11
Class C			1,000.00			1,028.50		1.59	%			8.11
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.91		0.84	%		$	4.27
Class B			1,000.00			1,017.14		1.59	%			8.06
Class C			1,000.00			1,017.14		1.59	%			8.06

Disclosure of Fund expenses

Delaware Tax-Free Idaho Fund
Expense analysis of an investment of $1,000

	Beginning			Ending						Expenses
	Account Value			Account Value			Annualized			Paid During Period
	3/1/12			8/31/12			Expense Ratio			3/1/12 to 8/31/12*
Actual Fund return
Class A		$	1,000.00		$	1,027.60		0.88	%		$	4.49
Class B			1,000.00			1,024.60		1.63	%			8.30
Class C			1,000.00			1,023.80		1.63	%			8.29
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.71		0.88	%		$	4.47
Class B			1,000.00			1,016.94		1.63	%			8.26
Class C			1,000.00			1,016.94		1.63	%			8.26

Delaware Tax-Free New York Fund
Expense analysis of an investment of $1,000

	Beginning			Ending						Expenses
	Account Value			Account Value			Annualized			Paid During Period
	3/1/12			8/31/12			Expense Ratio			3/1/12 to 8/31/12*
Actual Fund return
Class A		$	1,000.00		$	1,044.60		0.80	%		$	4.11
Class B			1,000.00			1,040.70		1.55	%			7.95
Class C			1,000.00			1,039.80		1.55	%			7.95
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,021.11		0.80	%		$	4.06
Class B			1,000.00			1,017.34		1.55	%			7.86
Class C			1,000.00			1,017.34		1.55	%			7.86

Security type/sector allocations
Delaware Tax-Free Arizona Fund	As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	100.64	%
Corporate Revenue Bonds	12.95	%
Education Revenue Bonds	15.09	%
Electric Revenue Bonds	7.28	%
Healthcare Revenue Bonds	18.96	%
Lease Revenue Bonds	12.39	%
Local General Obligation Bonds	3.43	%
Pre-Refunded Bond	0.00	%
Special Tax Revenue Bonds	20.27	%
State & Territory General Obligation Bonds	2.59	%
Transportation Revenue Bonds	6.07	%
Water & Sewer Revenue Bonds	1.61	%
Total Value of Securities	100.64	%
Liabilities Net of Receivables and Other Assets	(0.64	%)
Total Net Assets	100.00	%

Security type/sector allocations
Delaware Tax-Free California Fund	As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	98.35	%
Corporate Revenue Bonds	7.75	%
Education Revenue Bonds	7.78	%
Electric Revenue Bonds	4.92	%
Healthcare Revenue Bonds	18.56	%
Housing Revenue Bonds	3.50	%
Lease Revenue Bonds	5.80	%
Local General Obligation Bonds	7.37	%
Pre-Refunded Bonds	3.10	%
Resource Recovery Revenue Bond	0.95	%
Special Tax Revenue Bonds	15.36	%
State & Territory General Obligation Bonds	11.81	%
Transportation Revenue Bonds	6.46	%
Water & Sewer Revenue Bonds	4.99	%
Short-Term Investment	0.85	%
Total Value of Securities	99.20	%
Receivables and Other Assets Net of Liabilities	0.80	%
Total Net Assets	100.00	%

Delaware Tax-Free Colorado Fund

As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	99.84	%
Corporate Revenue Bond	1.26	%
Education Revenue Bonds	6.19	%
Electric Revenue Bonds	6.53	%
Healthcare Revenue Bonds	28.77	%
Housing Revenue Bonds	2.74	%
Lease Revenue Bonds	3.89	%
Local General Obligation Bonds	12.90	%
Pre-Refunded Bonds	8.19	%
Special Tax Revenue Bonds	15.90	%
State & Territory General Obligation Bonds	5.01	%
Transportation Revenue Bonds	7.88	%
Water & Sewer Revenue Bonds	0.58	%
Short-Term Investments	0.28	%
Total Value of Securities	100.12	%
Liabilities Net of Receivables and Other Assets	(0.12	%)
Total Net Assets	100.00	%

Security type/sector allocations
Delaware Tax-Free Idaho Fund	As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	98.07	%
Corporate Revenue Bonds	5.93	%
Education Revenue Bonds	8.39	%
Electric Revenue Bonds	4.89	%
Healthcare Revenue Bonds	7.95	%
Housing Revenue Bonds	2.87	%
Lease Revenue Bonds	2.66	%
Local General Obligation Bonds	21.58	%
Pre-Refunded Bonds	8.88	%
Special Tax Revenue Bonds	22.74	%
State & Territory General Obligation Bonds	3.43	%
Transportation Revenue Bonds	6.69	%
Water & Sewer Revenue Bonds	2.06	%
Short-Term Investments	1.04	%
Total Value of Securities	99.11	%
Receivables and Other Assets Net of Liabilities	0.89	%
Total Net Assets	100.00	%

Delaware Tax-Free New York Fund

As of August 31, 2012 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

Security type/sector	Percentage of net assets
Municipal Bonds	98.31	%
Corporate Revenue Bonds	9.48	%
Education Revenue Bonds	16.99	%
Electric Revenue Bonds	3.50	%
Healthcare Revenue Bonds	15.41	%
Housing Revenue Bonds	1.04	%
Lease Revenue Bonds	14.15	%
Local General Obligation Bonds	4.88	%
Pre-Refunded Bonds	2.15	%
Special Tax Revenue Bonds	12.91	%
State & Territory General Obligation Bonds	5.55	%
Transportation Revenue Bonds	9.15	%
Water & Sewer Revenue Bonds	3.10	%
Short-Term Investments	2.02	%
Total Value of Securities	100.33	%
Liabilities Net of Receivables and Other Assets	(0.33	%)
Total Net Assets	100.00	%

Statements of net assets
Delaware Tax-Free Arizona Fund	August 31, 2012

		Principal amount		Value
Municipal Bonds – 100.64%
Corporate Revenue Bonds – 12.95%
	Maricopa County Pollution Control (Palo Verde Project)
	Series A 5.05% 5/1/29 (AMBAC)		$2,000,000	$	2,004,680
	•Series B 5.20% 6/1/43		1,500,000		1,692,315
•	Navajo County Pollution Control Revenue
	(Arizona Public Services-Cholla)
	Series D 5.75% 6/1/34		1,500,000		1,695,810
	Pima County Industrial Development Authority Pollution
	Control Revenue (Tucson Electric Power San Juan)
	5.75% 9/1/29		750,000		801,218
	Series A 4.95% 10/1/20		1,450,000		1,610,892
	Series A 5.25% 10/1/40		3,400,000		3,682,403
	Salt Verde Financial Senior Gas Revenue 5.00% 12/1/37		2,250,000		2,404,283
					13,891,601
Education Revenue Bonds – 15.09%
	Arizona Health Facilities Authority
	Healthcare Education Revenue (Kirksville College)
	5.125% 1/1/30		1,500,000		1,638,630
	Arizona State University Certificates of Participation
	(Research Infrastructure Project)
	5.00% 9/1/30 (AMBAC)		2,000,000		2,131,080
	Arizona State University Energy Management Revenue
	(Arizona State University Tempe
	Campus II Project) 4.50% 7/1/24		1,000,000		1,106,670
	Arizona State University Series C 5.50% 7/1/25		330,000		403,570
	Glendale Industrial Development Authority Revenue
	(Midwestern University) 5.125% 5/15/40		1,305,000		1,391,208
	Northern Arizona University
	5.00% 6/1/36		475,000		527,331
	5.00% 6/1/41		1,240,000		1,366,802
	Phoenix Industrial Development Authority
	(Great Hearts Academic Project)
	6.30% 7/1/42		500,000		534,715
	6.40% 7/1/47		500,000		535,005
	(Rowan University Project) 5.00% 6/1/42		2,000,000		2,157,521
	Pima County Industrial Development Authority
	Educational Revenue (Tucson Country Day
	School Project) 5.00% 6/1/37		1,500,000		1,368,900

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	South Campus Group Student Housing Revenue
	(Arizona State University-South Campus
	Project) 5.625% 9/1/35 (NATL-RE)		$2,000,000	$	2,027,140
	Tucson Industrial Development Authority Lease Revenue
	(University of Arizona-Marshall Foundation)
	Series A 5.00% 7/15/27 (AMBAC)		1,000,000		1,001,540
					16,190,112
Electric Revenue Bonds – 7.28%
	Maricopa County Pollution Control Revenue
	Refunding (El Paso Electric Palo Verde Project)
	Series A 4.50% 8/1/42		2,500,000		2,557,175
	Mesa Utilities System Revenue 5.00% 7/1/18
	(NATL-RE) (FGIC)		1,500,000		1,809,375
	Pinal County Electric District #3 Refunding 5.25% 7/1/41		2,000,000		2,238,060
	Salt River Project Agricultural Improvement &
	Power District Electric Revenue System
	Series A 5.00% 12/1/30		1,000,000		1,203,910
					7,808,520
Healthcare Revenue Bonds – 18.96%
	Arizona State Health Facilities Authority Hospital System
	Revenue (Phoenix Children’s Hospital)
	Series A 5.00% 2/1/42		1,600,000		1,684,016
	Glendale Industrial Development Authority Hospital
	Revenue (John C. Lincoln Health) 5.00% 12/1/42		2,205,000		2,272,010
	Maricopa County Industrial Development Authority Health
	Facilities Revenue (Catholic Healthcare West) Series A
	5.25% 7/1/32		1,250,000		1,354,238
	5.50% 7/1/26		1,000,000		1,046,780
	6.00% 7/1/39		2,500,000		2,871,075
	Puerto Rico Industrial Tourist Educational Medical &
	Environmental Control Facilities Financing Authority
	(Auxilio Mutuo) Series A 6.00% 7/1/33		1,615,000		1,841,019
	Scottsdale Industrial Development Authority
	Hospital Revenue (Scottsdale Healthcare)
	Series A 5.25% 9/1/30		1,250,000		1,266,575
	Tempe Industrial Development Authority Revenue
	(Friendship Village) Series A 6.25% 12/1/42		1,200,000		1,297,428

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	University of Arizona Medical Center Hospital Revenue
	6.00% 7/1/39		$1,500,000	$	1,733,985
	6.50% 7/1/39		2,500,000		2,900,274
	Yavapai County Industrial Development Authority
	Revenue (Yavapai Regional Medical Center)
	Series A 5.25% 8/1/21 (RADIAN)		2,000,000		2,075,220
					20,342,620
Lease Revenue Bonds – 12.39%
	Arizona Game & Fish Department & Community
	Beneficial Interest Certificates
	(Administration Building Project) 5.00% 7/1/32		1,000,000		1,054,610
	Arizona State Certificates of Participation Department
	Administration Series A 5.25% 10/1/25 (AGM)		1,500,000		1,748,745
	Arizona State Sports & Tourism Authority Senior Revenue
	(Multipurpose Stadium Facility) Series A 5.00% 7/1/36		1,000,000		1,104,130
	Marana Municipal Property Facilities Revenue
	5.00% 7/1/28 (AMBAC)		575,000		585,396
	Maricopa County Industrial Development Authority
	Correctional Contract Revenue (Phoenix West Prison)
	Series B 5.375% 7/1/22 (ACA)		1,000,000		1,002,670
	Phoenix Industrial Development Authority Lease Revenue
	(Capitol Mall II, LLC Project) 5.00% 9/15/28 (AMBAC)		2,000,000		2,002,060
	Pima County Industrial Development Authority Lease
	Revenue Metro Police Facility (Nevada Project) Series A
	5.25% 7/1/31		1,500,000		1,633,980
	5.375% 7/1/39		1,500,000		1,646,130
	6.00% 7/1/41		1,000,000		1,148,430
	Pinal County Certificates of Participation 5.00% 12/1/29		1,300,000		1,362,036
					13,288,187
Local General Obligation Bonds – 3.43%
	Coconino & Yavapai Counties Joint Unified School
	District #9 (Sedona Oak Creek Project of 2007)
	Series B 5.375% 7/1/28		1,350,000		1,557,077
	DC Ranch Community Facilities 5.00% 7/15/27 (AMBAC)		1,000,000		1,014,670
•	Gila County Unified School District #10
	(Payson School Improvement Project of 2006)
	Series A 5.25% 7/1/27 (AMBAC)		1,000,000		1,111,670
					3,683,417

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bond – 0.00%
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series I
	5.25% 7/1/33-14	$	5,000	$	5,443
					5,443
Special Tax Revenue Bonds – 20.27%
	Arizona Transportation Board
	(Maricopa County Regional Area Road) 5.00% 7/1/25		1,000,000		1,182,980
	Series A 5.00% 7/1/29		1,115,000		1,287,647
	Flagstaff Aspen Place Sawmill Improvement District
	Revenue 5.00% 1/1/32		875,000		876,181
	Gilbert Public Facilities Municipal Property Revenue
	5.00% 7/1/25		1,250,000		1,425,325
	Guam Government Business Privilege Tax Revenue Series A
	5.125% 1/1/42		545,000		606,476
	5.25% 1/1/36		705,000		796,185
	Marana Tangerine Farm Road Improvement District
	Revenue 4.60% 1/1/26		818,000		847,219
	Phoenix Civic Improvement Excise Tax Revenue
	(Solid Waste Improvements)
	Series A 5.00% 7/1/19 (NATL-RE)		1,000,000		1,120,040
	Phoenix Civic Improvement Transition Excise Tax
	Revenue (Light Rail Project)
	5.00% 7/1/20 (AMBAC)		1,570,000		1,697,405
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue Series C
	5.50% 7/1/25 (AMBAC)		455,000		507,202
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate
	Ω(Convertible Capital Appreciation Bonds) Series A
	6.75% 8/1/32		960,000		994,176
	Series A 5.00% 8/1/26		1,100,000		1,223,332
	Series A 5.00% 8/1/46		1,500,000		1,618,994
	^Series A 5.03% 8/1/44 (NATL-RE)		3,885,000		667,987
	^Series A 5.04% 8/1/45 (NATL-RE)		3,980,000		641,616
	Series A 5.375% 8/1/39		850,000		909,976
	Series A 5.50% 8/1/42		1,000,000		1,081,080
	Series A 5.75% 8/1/37		580,000		647,645
	Series A 6.50% 8/1/44		1,250,000		1,492,538
	Series A-1 5.00% 8/1/43		1,060,000		1,114,039

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Queen Creek Improvement District #1 5.00% 1/1/32	$	1,000,000	$	1,005,660
					21,743,703
State & Territory General Obligation Bonds – 2.59%
	Puerto Rico Commonwealth Public Improvement
	Series A 5.75% 7/1/41		2,000,000		2,139,060
	Series E 5.375% 7/1/30		600,000		640,362
					2,779,422
Transportation Revenue Bonds – 6.07%
	Arizona State Transportation Board Highway Revenue
	Subordinated Series A 5.00% 7/1/23		1,000,000		1,075,610
	Phoenix Civic Improvement Airport Revenue
	(Junior Lien) Series A 5.25% 7/1/33		1,250,000		1,430,438
	(Senior Lien) Series B
	5.25% 7/1/27 (NATL-RE) (FGIC) (AMT)		1,000,000		1,001,500
	5.25% 7/1/32 (NATL-RE) (FGIC) (AMT)		3,000,000		3,003,930
					6,511,478
Water & Sewer Revenue Bonds – 1.61%
	Phoenix Civic Improvement Wastewater Corporation
	Systems Revenue (Junior Lien)
	5.00% 7/1/19 (NATL-RE)		1,000,000		1,173,380
	Puerto Rico Commonwealth Aqueduct & Sewer Authority
	(Senior Lien) Series A
	5.25% 7/1/42		220,000		221,412
	6.00% 7/1/47		305,000		334,024
					1,728,816
Total Municipal Bonds (cost $99,564,815)					107,973,319

Total Value of Securities – 100.64%
	(cost $99,564,815)				107,973,319
Liabilities Net of Receivables and
	Other Assets – (0.64%)				(687,929	)
Net Assets Applicable to 8,929,906
	Shares Outstanding – 100.00%			$	107,285,390


Net Asset Value – Delaware Tax-Free Arizona Fund
Class A ($99,952,950 / 8,321,078 Shares)		$12.01
Net Asset Value – Delaware Tax-Free Arizona Fund
Class B ($224,654 / 18,688 Shares)		$12.02
Net Asset Value – Delaware Tax-Free Arizona Fund
Class C ($7,107,786 / 590,140 Shares)		$12.04

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	98,005,801
Undistributed net investment income		25,309
Accumulated net realized gain on investments		845,776
Net unrealized appreciation of investments		8,408,504
Total net assets	$	107,285,390

•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
^	Zero coupon security. The rate shown is the yield at the time of purchase.

Statements of net assets
Delaware Tax-Free Arizona Fund


Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Arizona Fund
Net asset value Class A (A)	$	12.01
Sales charge (4.50% of offering price) (B)		0.57
Offering price	$	12.58

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by Financial Guaranty Insurance Company
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance

See accompanying notes, which are an integral part of the financial statements.

Delaware Tax-Free California Fund

August 31, 2012

		Principal amount		Value
Municipal Bonds – 98.35%
Corporate Revenue Bonds – 7.75%
•	California Pollution Control Financing Authority
	Environmental Improvement Revenue
	(BP West Coast Products, LLC) 2.60% 12/1/46	$	500,000	$	519,245
	Chula Vista Industrial Development Revenue
	(San Diego Gas & Electric) Series D 5.875% 1/1/34		1,000,000		1,175,440
	Golden State Tobacco Securitization Corporate
	Settlement Revenue
	5.00% 6/1/45 (AMBAC) (TCRS)		950,000		969,855
	(Asset-Backed Senior Notes) Series A-1
	5.125% 6/1/47		2,000,000		1,542,480
	5.75% 6/1/47		3,500,000		2,980,705
	M-S-R Energy Authority Gas Revenue
	Series A 6.50% 11/1/39		1,000,000		1,285,140
	Series C 6.50% 11/1/39		500,000		642,570
					9,115,435
Education Revenue Bonds – 7.78%
	California Educational Facilities Authority Revenue
	(Chapman University) 5.00% 4/1/31		500,000		560,490
	(University of Southern California)
	Series A 5.00% 10/1/23		1,000,000		1,290,330
	(Woodbury University) 5.00% 1/1/36		1,000,000		1,002,330
	California Municipal Finance Authority Educational Revenue
	(American Heritage Education Foundation Project)
	Series A 5.25% 6/1/36		1,000,000		929,470
	California Municipal Finance Authority Revenue
	(Southwestern Law School) 6.50% 11/1/41		1,140,000		1,336,479
	California Statewide Communities Development Authority
	Charter School Revenue
	(Green Dot Public Schools) Series A 7.25% 8/1/41		800,000		883,040
	California Statewide Communities Development
	Authority Revenue
	(California Baptist University Project)
	Series A 5.50% 11/1/38		1,000,000		1,039,500
	(Irvine Campus) 5.375% 5/15/38		1,000,000		1,069,070
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools Project)
	6.00% 7/1/40		1,000,000		1,030,660
					9,141,369

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount		Value
Municipal Bonds (continued)
Electric Revenue Bonds – 4.92%
	Anaheim Public Financing Authority Electric System District
	Facilities Series A 5.00% 10/1/25	$	800,000	$	953,080
	Imperial Irrigation District Electric System Revenue
	Series A 5.25% 11/1/24		500,000		594,560
	Series B 5.00% 11/1/36		250,000		276,708
	Series C 5.25% 11/1/31		1,175,000		1,367,500
	Puerto Rico Electric Power Authority Revenue
	Series A 5.00% 7/1/42		500,000		511,870
	Southern California Public Power Authority Revenue
	(Transmission Project) Series A 5.00% 7/1/22		1,000,000		1,162,580
	Turlock Irrigation District Revenue Series A 5.00% 1/1/30		830,000		919,781
					5,786,079
Healthcare Revenue Bonds – 18.56%
	Abag Finance Authority for Nonprofit
	Corporations Refunding
	(Episcopal Senior Communities)
	6.125% 7/1/41		850,000		964,623
	(Sharp Health Care)
	6.25% 8/1/39		1,000,000		1,190,260
	Series A 5.00% 8/1/26		300,000		341,115
	Series A 5.00% 8/1/27		300,000		339,402
	Series A 5.00% 8/1/28		250,000		281,243
	California Health Facilities Financing Authority Revenue
	(Catholic Health Care West)
	Series A 6.00% 7/1/39		855,000		1,009,764
	Series E 5.625% 7/1/25		1,000,000		1,151,710
	Series G 5.25% 7/1/23		1,000,000		1,062,760
	(Children’s Hospital of Los Angeles)
	Series A 5.00% 11/15/34		1,000,000		1,069,640
	(Lucile Packard Children’s Hospital)
	Series A 5.00% 8/15/51		630,000		683,733
	(Scripps Health Care)
	Series A 5.00% 11/15/32		1,000,000		1,125,930
	Series A 5.00% 11/15/40		850,000		935,153
	(St. Joseph Health System) Series A 5.75% 7/1/39		1,000,000		1,154,360
	(Stanford Hospital) Series A-2 5.25% 11/15/40		600,000		684,780
	(Sutter Health Care) Series D 5.25% 8/15/31		1,000,000		1,148,020
	(The Episcopal Home) Series A 5.30% 2/1/32
	(RADIAN) (IBC)		475,000		475,432

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	California Statewide Communities Development
	Authority Revenue
	(Kaiser Permanente)
	Series A 5.00% 4/1/19	$	1,000,000	$	1,187,570
	Series A 5.00% 4/1/42		2,085,000		2,278,195
	Series B 5.25% 3/1/45		1,000,000		1,062,770
	(Southern California Senior Living) 7.25% 11/15/41		500,000		570,400
	(Trinity Health) 5.00% 12/1/41		1,000,000		1,116,350
	(Valleycare Health Systems) Series A 5.125% 7/15/31		1,000,000		1,029,580
	San Buenaventura Community Memorial Health Systems
	7.50%12/1/41		785,000		953,540
					21,816,330
Housing Revenue Bonds – 3.50%
	California Municipal Finance Authority Mobile Home Park
	Revenue (Caritas Projects) Series A 6.40% 8/15/45		995,000		1,089,445
•	California Statewide Communities Development
	Multifamily Housing Authority Revenue
	(Silver Ridge Apartments)
	Series H 5.80% 8/1/33 (FNMA) (AMT)		1,000,000		1,011,630
	Independent Cities Finance Authority Mobile Home Park
	Revenue (Sahar Mobile Home Park)
	Series A 5.00% 6/15/47		1,000,000		1,012,670
	Santa Clara County Multifamily Housing Authority Revenue
	(Rivertown Apartments Project)
	Series A 5.85% 8/1/31 (AMT)		1,000,000		1,003,870
					4,117,615
Lease Revenue Bonds – 5.80%
	California State Public Works Board Lease Revenue
	(California State Prisons Los Angeles)
	Series C 5.00% 10/1/26		1,000,000		1,133,720
	(General Services) Series A 6.25% 4/1/34		1,000,000		1,189,200
	Elsinore Valley Municipal Water District Certificates of
	Participation Series A 5.00% 7/1/24 (BHAC)		1,000,000		1,166,890
	Franklin-McKinley School District Certificates of
	Participation (Financing Project)
	Series B 5.00% 9/1/27 (AMBAC)		1,060,000		1,068,968
	San Diego Public Facilities Financing Authority Lease
	Revenue (Master Project) Series A 5.25% 3/1/40		1,000,000		1,078,820

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	San Mateo Joint Powers Financing Authority Lease
	Revenue (Capital Projects) Series A 5.25% 7/15/26	$	1,000,000	$	1,175,900
					6,813,498
Local General Obligation Bonds – 7.37%
^	Anaheim School District Election 2002
	4.58% 8/1/25 (NATL-RE)		1,000,000		556,730
	Bonita Unified School District Election 2008
	Series B 5.25% 8/1/28		800,000		963,144
	Central Unified School District Election 2008
	Series A 5.625% 8/1/33 (ASSURED GTY)		1,000,000		1,154,400
	Fairfield-Suisun Unified School District Election 2002
	5.50% 8/1/28 (NATL-RE)		500,000		537,820
	Grossmont Union High School District Election 2004
	5.00% 8/1/33		1,000,000		1,107,380
	Long Beach Unified School District Refinancing
	5.00% 8/1/29		1,000,000		1,181,250
	Pittsburg Unified School District Financing Authority
	Revenue (Pittsburg Unified School District Building
	Program) 5.50% 9/1/46 (AGM)		800,000		905,648
	Santa Barbara Community College District Election 2008
	Series A 5.25% 8/1/33		1,000,000		1,170,620
	Sierra Joint Community College District #2
	(Western Nevada) Series A 5.25% 8/1/21 (BHAC) (FGIC)		1,000,000		1,090,450
					8,667,442
§Pre-Refunded Bonds – 3.10%
	California Department of Water Resources
	(Central Valley Project) Series X
	5.00% 12/1/29-12 (NATL-RE) (FGIC)		5,000		5,060
	California State Department of Water Resources
	Un-Refunded 2010 (Central Valley Project) Series X
	5.00% 12/1/29-12 (NATL-RE) (FGIC)		740,000		747,881
	California Statewide Communities Development Authority
	Revenue (Viewpoint School Project)
	5.75% 10/1/33-14 (ACA)		1,000,000		1,110,660
	Commerce Joint Powers Financing Authority Revenue
	(Redevelopment Projects) Series A
	5.00% 8/1/28-13 (RADIAN)		60,000		62,632

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Golden State Tobacco Securitization Corporation
	Settlement Revenue (Asset-Backed Senior Notes)
	Series B 5.625% 6/1/33-13	$	1,000,000	$	1,040,670
	Grossmont Union High School District Election 2004
	5.00% 8/1/23-15 (NATL-RE)		500,000		568,000
	Port Oakland Revenue Series L 5.375% 11/1/27-12
	(NATL-RE) (FGIC) (AMT)		110,000		110,938
					3,645,841
Resource Recovery Revenue Bond – 0.95%
	South Bayside Waste Management Authority Revenue
	(Shoreway Environmental Center)
	Series A 6.00% 9/1/36		1,000,000		1,113,640
					1,113,640
Special Tax Revenue Bonds – 15.36%
	Bonita Canyon Public Facilities Financing Authority Revenue
	(Community Facilities District #98-1) 5.00% 9/1/28		800,000		827,088
	California Statewide Communities Development Authority
	Revenue (Inland Regional Center Project)
	5.375% 12/1/37		1,350,000		1,375,502
	Commerce Joint Powers Financing Authority Revenue
	Un-Refunded Balance (Redevelopment Projects)
	Series A 5.00% 8/1/28 (RADIAN)		940,000		943,234
	Fremont Community Facilities District #1
	(Special Tax Pacific Commons) 5.375% 9/1/36		1,000,000		1,003,980
	Glendale Redevelopment Agency Tax Allocation Revenue
	(Central Glendale Redevelopment Project)
	5.50% 12/1/24		1,000,000		1,053,790
	Lammersville School District Community Facilities
	District #2002 (Mountain House) 5.125% 9/1/35		500,000		500,985
	Lancaster Redevelopment Agency Tax Allocation Revenue
	(Combined Redevelopment Project Areas)
	6.875% 8/1/39		500,000		569,380
@	Modesto Special Tax Community Facilities
	District #4-1 (Village 2) 5.15% 9/1/36		1,000,000		1,001,070
	Poway Redevelopment Agency Tax Allocation Revenue
	5.75% 6/15/33 (NATL-RE)		270,000		270,894

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate Series A
	5.25% 8/1/27	$	1,000,000	$	1,135,230
	5.50% 8/1/37		835,000		904,363
	Ω(Convertible Capital Appreciation) 6.75% 8/1/32		660,000		683,496
	Rancho Santa Fe Community Services District Financing
	Authority Revenue Superior Lien Series A 5.75% 9/1/30		800,000		879,552
	Riverside County Redevelopment Agency Tax Allocation
	Housing Series A 6.00% 10/1/39		1,000,000		1,091,110
	Roseville Westpark Special Tax Public Community Facilities
	District #1 5.25% 9/1/37		500,000		501,070
	San Bernardino County Special Tax Community Facilities
	District #2002-1 5.90% 9/1/33		2,000,000		2,041,479
	San Diego Redevelopment Agency Tax Allocation Revenue
	(Naval Training Center) Series A 5.75% 9/1/40		1,000,000		1,073,140
	San Mateo Special Tax Revenue
	(Community Facilities District #200) 6.00% 9/1/42		800,000		870,896
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan Note)
	Series A 5.00% 10/1/29		715,000		781,238
	Yucaipa Special Tax Refunding Community Facilities
	District #98-1 (Chapman Heights) 5.375% 9/1/30		500,000		543,655
					18,051,152
State & Territory General Obligation Bonds – 11.81%
	California State Various Purposes
	5.00% 9/1/41		750,000		823,755
	5.00% 10/1/41		225,000		247,293
	5.00% 4/1/42		1,000,000		1,101,940
	5.25% 3/1/30		1,000,000		1,151,200
	5.25% 4/1/35		2,000,000		2,283,700
	5.25% 11/1/40		1,000,000		1,132,810
	6.00% 3/1/33		1,000,000		1,231,470
	6.00% 4/1/38		515,000		607,504
	Puerto Rico Commonwealth Public Improvement Series A
	5.00% 7/1/41		2,900,000		2,888,835
	5.50% 7/1/39		1,500,000		1,562,910
	5.75% 7/1/41		800,000		855,624
					13,887,041

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 6.46%
	Bay Area Toll Authority Bridge Revenue
	(San Francisco Bay Area) Series F-1 5.25% 4/1/27	$	800,000	$	965,264
	Los Angeles Department of Airports Subordinate
	(Los Angeles International) Series B 5.00% 5/15/33		1,690,000		1,898,056
	Port Oakland Revenue Un-Refunded Series L 5.375%
	11/1/27 (NATL-RE) (FGIC) (AMT)		890,000		894,503
	San Diego Redevelopment Agency (Centre City
	Redevelopment Project) Series A 6.40% 9/1/25		1,000,000		1,001,190
	San Francisco Municipal Transportation Agency Revenue
	Series B 5.00% 3/1/37		2,500,000		2,830,025
					7,589,038
Water & Sewer Revenue Bonds – 4.99%
	California State Department of Water Resources Systems
	Revenue (Central Valley Project)
	Series AG 5.00% 12/1/28		815,000		968,628
	San Diego Public Facilities Financing Authority Water
	Revenue Subordinate Series A 5.00% 8/1/29		1,000,000		1,194,590
	San Francisco City & County Public Utilities Commission
	Water & Sewer Improvement Subordinate Series A
	5.00% 11/1/32		1,015,000		1,191,255
	5.00% 11/1/41		1,380,000		1,574,165
	San Francisco City & County Public Utilities Commission
	Water Revenue Series B 5.00% 11/1/26		800,000		941,768
					5,870,406
Total Municipal Bonds (cost $106,603,032)					115,614,886

Short-Term Investment – 0.85%
¤Variable Rate Demand Note – 0.85%
	California State Health Facilities Financing Authority
	Revenue (Adventist Health System) Series A
	0.15% 9/1/2025 (LOC-Wells Fargo Bank, N.A.)		1,000,000		1,000,000
Total Short-Term Investment (cost $1,000,000)					1,000,000

Statements of net assets
Delaware Tax-Free California Fund


Total Value of Securities – 99.20%
(cost $107,603,032)	$	116,614,886
Receivables and Other Assets
Net of Liabilities – 0.80%		941,038
Net Assets Applicable to 9,625,858
Shares Outstanding – 100.00%	$	117,555,924

Net Asset Value – Delaware Tax-Free California Fund
Class A ($97,820,923 / 8,012,316 Shares)		$12.21
Net Asset Value – Delaware Tax-Free California Fund
Class B ($905,199 / 73,836 Shares)		$12.26
Net Asset Value – Delaware Tax-Free California Fund
Class C ($18,829,802 / 1,539,706 Shares)		$12.23

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	108,881,968
Undistributed net investment income		18,763
Accumulated net realized loss on investments		(356,661	)
Net unrealized appreciation of investments		9,011,854
Total net assets	$	117,555,924

•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
^	Zero coupon security. The rate shown is the yield at the time of purchase.
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
@	Illiquid security. At August 31 2012, the aggregate value of illiquid securities was $1,001,070, which represented 0.85% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.


Net Asset Value and Offering Price Per Share –
Delaware Tax-Free California Fund
Net asset value Class A (A)	$	12.21
Sales charge (4.50% of offering price) (B)		0.58
Offering price	$	12.79

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)		See the current prospectus for purchases of $100,000 or more.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
BHAC — Insured by Berkshire Hathaway Assurance Company
FGIC — Insured by Financial Guaranty Insurance Company
FNMA — Federal National Mortgage Association collateral
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance
TCRS — Temporary Custodial Receipts

See accompanying notes, which are an integral part of the financial statements.

Statements of net assets
Delaware Tax-Free Colorado Fund		August 31, 2012

		Principal amount		Value
Municipal Bonds – 99.84%
Corporate Revenue Bond – 1.26%
	Public Authority Energy Natural Gas Revenue
	Series 2008 6.50% 11/15/38	$	2,500,000	$	3,087,825
					3,087,825
Education Revenue Bonds – 6.19%
	Boulder County Development Revenue
	(University Corporation for Atmospheric Research)
	5.00% 9/1/35 (AMBAC)		1,000,000		1,016,740
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Charter School Project)
	5.00% 7/15/37		1,150,000		1,203,303
	5.50% 5/1/36 (SGI)		2,280,000		2,322,476
	(Johnson & Wales University Project)
	Series A 5.00% 4/1/28 (SGI)		1,000,000		1,003,920
	(Liberty Common Charter School Project)
	5.125% 12/1/33 (SGI)		2,740,000		2,767,208
	(Pinnacle Charter School Project) 5.00% 6/1/33 (SGI)		2,170,000		2,182,456
	(Woodrow Wilson Charter School Project)
	5.25% 12/1/34 (SGI)		1,960,000		2,017,271
	Colorado School Mines Auxiliary Facilities
	5.00% 12/1/37 (AMBAC)		425,000		426,539
	University of Colorado Enterprise System Revenue
	Series A 5.00% 6/1/30 (AMBAC)		2,000,000		2,229,020
					15,168,933
Electric Revenue Bonds – 6.53%
	Colorado Springs Utilities System Improvement Revenue
	Series C 5.50% 11/15/48		3,250,000		3,682,380
	Platte River Power Authority Revenue Series HH
	5.00% 6/1/27		2,795,000		3,253,017
	5.00% 6/1/29		2,355,000		2,720,873
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.00% 7/1/28		2,400,000		2,512,824
	Series ZZ 5.25% 7/1/26		3,500,000		3,834,669
					16,003,763

			Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds – 28.77%
	Aspen Valley Hospital District Revenue
		5.00% 10/15/30	$	1,250,000	$	1,372,263
		5.00% 10/15/33		600,000		654,996
	Aurora Hospital Revenue
		(Children’s Hospital Association Project)
		Series A 5.00% 12/1/40		1,900,000		2,084,452
		Series D 5.00% 12/1/23 (AGM)		2,775,000		3,103,448
	Colorado Health Facilities Authority Revenue
	•	(Adventist Health/Sunbelt) 5.125% 11/15/24		1,375,000		1,512,129
		(Boulder Community Hospital Project)
		5.00% 10/1/42		2,000,000		2,170,600
		(Catholic Health Initiatives)
		Series A 4.75% 9/1/40		1,000,000		1,053,340
		Series A 5.00% 7/1/39		1,540,000		1,656,455
		Series A 5.00% 2/1/41		2,250,000		2,455,560
		Series A 5.25% 2/1/33		1,000,000		1,152,980
		Series C-1 5.10% 10/1/41 (AGM)		2,000,000		2,138,040
		Series D 6.25% 10/1/33		2,000,000		2,370,520
		(Christian Living Community Project)
		6.375% 1/1/41		1,000,000		1,103,980
		Series A 5.75% 1/1/37		1,500,000		1,546,170
		(Covenant Retirement Communities) Series A
		5.00% 12/1/33		4,000,000		4,174,199
		5.50% 12/1/33 (RADIAN)		5,000,000		5,044,399
		(Evangelical Lutheran)
		5.00% 6/1/35		2,000,000		2,074,180
		5.00% 12/1/42		2,500,000		2,647,200
		Series A 5.25% 6/1/34		2,750,000		2,813,223
		(National Jewish Health Project) 5.00% 1/1/27		550,000		585,184
		(Parkview Medical Center) 5.00% 9/1/25		1,000,000		1,034,640
		(Sisters Leavenworth)
		Series A 5.00% 1/1/40		1,000,000		1,085,790
		Series B 5.25% 1/1/25		2,500,000		2,886,400
		(Total Long-Term Care) Series A
		6.00% 11/15/30		2,365,000		2,656,865
		6.25% 11/15/40		750,000		840,525
		(Valley View Hospital Association) 5.50% 5/15/28		1,000,000		1,069,200

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Colorado Springs Hospital Revenue 6.25% 12/15/33	$	2,500,000	$	2,838,050
	Delta County Memorial Hospital District Enterprise
	Revenue 5.35% 9/1/17		4,000,000		4,085,239
	Denver Health & Hospital Authority Health Care Revenue
	(Recovery Zone Facilities) 5.625% 12/1/40		2,500,000		2,716,075
	Series A 4.75% 12/1/36		1,500,000		1,519,770
	Puerto Rico Industrial Tourist Educational Medical &
	Environmental Control Facilities Financing Authority
	Auxilio Mutuo Series A 6.00% 7/1/33		2,120,000		2,416,694
	University of Colorado Hospital Authority Revenue Series A
	5.00% 11/15/37		2,690,000		2,847,661
	6.00% 11/15/29		2,460,000		2,854,486
					70,564,713
Housing Revenue Bonds – 2.74%
	Colorado Housing & Finance Authority
	(Multifamily Housing Insured Mortgage)
	Series C3 6.15% 10/1/41		1,590,000		1,592,798
	(Single Family Mortgage) Series A 5.50% 11/1/29
	(FHA) (VA) (HUD)		1,195,000		1,240,159
	(Single Family Program) Series AA
	4.50% 5/1/23 (FHLMC)		720,000		809,460
	4.50% 11/1/23 (FHLMC)		740,000		831,945
	Puerto Rico Housing Finance Authority
	Subordinate (Capital Fund Modernization)
	5.125% 12/1/27		2,040,000		2,254,302
					6,728,664
Lease Revenue Bonds – 3.89%
	Aurora Certificates of Participation Refunding
	Series A 5.00% 12/1/30		2,370,000		2,677,508
	Colorado Building Excellent Schools Today Certificates of
	Participation Series G 5.00% 3/15/32		2,000,000		2,282,340
	Pueblo County Certificates of Participation
	(County Judicial Complex Project)
	5.00% 9/15/42 (AGM)		2,500,000		2,820,750
	Regional Transportation District Certificates of
	Participation Series A 5.375% 6/1/31		1,540,000		1,760,836
					9,541,434

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds – 12.90%
	Arapahoe County Water & Wastewater Public
	Improvement District
	Series A 5.125% 12/1/32 (NATL-RE)	$	2,555,000	$	2,569,947
	Denver City & County
	(Better Denver & Zoo) Series A 5.00% 8/1/25		3,215,000		3,841,506
	(Justice System Facilities & Zoo) 5.00% 8/1/19		1,020,000		1,143,002
	Denver City & County School Refunding District #1
	4.00% 12/1/28		2,500,000		2,771,925
	Denver International Business Center Metropolitan
	District #1 5.00% 12/1/30		350,000		367,213
	Douglas County School District #1
	(Douglas & Elbert Counties) 5.00% 12/15/22		1,175,000		1,471,077
	Garfield County School District #2
	5.00% 12/1/25 (AGM)		2,280,000		2,615,935
	Grand County School District #2 (East Grand)
	5.25% 12/1/25 (AGM)		2,485,000		2,846,418
	Gunnison Watershed School District #1J
	Series 2009 5.25% 12/1/33		1,400,000		1,617,490
	Ignacio School District #11JT
	5.00% 12/1/28		1,420,000		1,697,894
	5.00% 12/1/31		835,000		983,380
	Jefferson County School District #1 5.25% 12/15/24		2,500,000		3,290,825
@	North Range Metropolitan
	District #1 4.50% 12/15/31 (ACA)		1,500,000		1,305,975
	District #2 5.50% 12/15/37		1,200,000		1,169,508
	Rangely Hospital District 6.00% 11/1/26		2,250,000		2,665,418
	Weld County School District #4 5.00% 12/1/19 (AGM)		1,085,000		1,279,909
					31,637,422
§Pre-Refunded Bonds – 8.19%
	Adams & Arapahoe Counties Joint School
	District #28J (Aurora) 6.00% 12/1/28-18		2,500,000		3,249,300
	Colorado Health Facilities Authority Revenue
	(Adventist Health) 5.125% 11/15/24-16		75,000		89,531
	(Evangelical Lutheran) Series A 6.125% 6/1/38-14		5,250,000		5,776,786
	Denver West Metropolitan District
	5.00% 12/1/33-13 (RADIAN)		1,400,000		1,413,580

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Douglas County School District #1
	(Douglas & Elbert Counties)
	Series B 5.00% 12/15/24-16	$	2,355,000	$	2,794,278
	El Paso County Certificates of Participation
	(Detention Facilities Project)
	Series B 5.00% 12/1/27-12 (AMBAC)		1,500,000		1,517,880
	Fremont County School District #1 (Canon City)
	5.00% 12/1/24-13 (NATL-RE)		1,000,000		1,059,790
	Garfield Pitkin & Eagle Counties School District #1
	(Roaring Fork)
	Series A 5.00% 12/15/27-14 (AGM)		1,500,000		1,660,245
	La Plata County School District #9 (Durango)
	5.125% 11/1/24-13 (NATL-RE)		1,000,000		1,057,340
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/21-13		1,250,000		1,302,800
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.25% 7/1/33-14		25,000		27,215
	Sand Creek Metropolitan District
	5.00% 12/1/31-13 (SGI)		135,000		142,808
					20,091,553
Special Tax Revenue Bonds – 15.90%
	Aspen Sales Tax Revenue (Parks & Open Spaces)
	Series B 5.25% 11/1/23 (AGM)		2,040,000		2,298,101
@	Baptist Road Rural Transportation Authority Sales &
	Use Tax Revenue 5.00% 12/1/26		1,575,000		1,224,437
	Denver City & County Justice System Facilities
	5.00% 8/1/21		1,500,000		1,733,265
	Denver Convention Center Hotel Authority Revenue
	5.00% 12/1/35 (SGI)		3,495,000		3,584,541
	Denver International Business Center Metropolitan
	District #1 5.375% 12/1/35		1,750,000		1,837,815
	Guam Government Business Privilege Tax Revenue
	Series A
	5.125% 1/1/42		1,250,000		1,391,000
	5.25% 1/1/36		1,675,000		1,891,645

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Park Meadows Business Improvement District Shared
	Sales Tax Revenue
	5.30% 12/1/27	$	950,000	$	1,008,359
	5.35% 12/1/31		720,000		757,217
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate
	Ω(Convertible Capital Appreciation) Series A
	6.75% 8/1/32		1,345,000		1,392,882
	Series A 5.25% 8/1/27		1,100,000		1,248,753
	Series A 5.50% 8/1/42		1,500,000		1,621,620
	Series A 5.75% 8/1/37		2,620,000		2,925,571
	Series A-1 5.00% 8/1/43		1,770,000		1,860,235
	Series C 5.00% 8/1/40		2,500,000		2,710,250
	Series C 5.00% 8/1/46		5,500,000		5,936,314
	Series C 5.50% 8/1/40		1,000,000		1,087,100
	Regional Transportation District Sales Tax Revenue
	(FasTracks Project) Series A
	5.00% 11/1/28 (AMBAC)		2,500,000		2,870,975
	5.25% 11/1/18		1,000,000		1,243,790
	Sand Creek Metropolitan District 5.00% 12/1/31 (SGI)		365,000		367,675
					38,991,545
State & Territory General Obligation Bonds – 5.01%
	Puerto Rico Commonwealth Public Improvement
	Series A 5.00% 7/1/41		5,500,000		5,478,824
	Series A 5.50% 7/1/19 (NATL-RE) (IBC)		1,220,000		1,367,169
	Series A 5.75% 7/1/41		3,850,000		4,117,691
	Series E 5.375% 7/1/30		1,250,000		1,334,088
					12,297,772
Transportation Revenue Bonds – 7.88%
	Denver City & County Airport System Revenue
	Series A 5.00% 11/15/25 (NATL-RE) (FGIC)		2,000,000		2,265,780
	Series A 5.25% 11/15/36		2,500,000		2,812,800
	Series B 5.00% 11/15/33 (SGI)		2,000,000		2,084,140
	E-470 Public Highway Authority Series C
	5.25% 9/1/25		690,000		751,514
	5.375% 9/1/26		2,000,000		2,180,980
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30		4,700,000		4,768,431

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Regional Transportation District Revenue
	(Denver Transit Partners)
	6.00% 1/15/34	$	1,450,000	$	1,689,352
	6.00% 1/15/41		2,400,000		2,778,312
					19,331,309
Water & Sewer Revenue Bonds – 0.58%
	Eagle River Water & Sanitation District Enterprise Revenue
	5.00% 12/1/29 (ASSURED GTY)		250,000		290,390
	Pueblo Board Waterworks Revenue
	5.00% 11/1/21 (AGM)		1,000,000		1,127,100
					1,417,490
Total Municipal Bonds (cost $226,052,599)					244,862,423

		Number of shares
Short-Term Investments – 0.28%
Money Market Mutual Fund – 0.16%
	Dreyfus Cash Management Fund		376,500		376,500
					376,500

		Principal amount
¤Variable Rate Demand Note – 0.12%
	Colorado Educational & Cultural Facilities Authority
	(National Jewish Federation Bond Program)
	Series D-7 0.19% 2/1/35
	(LOC-JPMorgan Chase Bank N.A.)	$	300,000		300,000
					300,000
Total Short-Term Investments (cost $676,500)					676,500

Total Value of Securities – 100.12%
	(cost $226,729,099)				245,538,923
Liabilities Net of Receivables and
	Other Assets – (0.12%)				(296,449	)
Net Assets Applicable to 21,065,629
	Shares Outstanding – 100.00%			$	245,242,474


Net Asset Value – Delaware Tax-Free Colorado Fund
Class A ($230,787,672 / 19,827,117 Shares)			$11.64
Net Asset Value – Delaware Tax-Free Colorado Fund
Class B ($173,092 / 14,857 Shares)			$11.65
Net Asset Value – Delaware Tax-Free Colorado Fund
Class C ($14,281,710 / 1,223,655 Shares)			$11.67

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	227,706,481
Undistributed net investment income		352,562
Accumulated net realized loss on investments		(1,626,393		)
Net unrealized appreciation of investments		18,809,824
Total net assets	$	245,242,474

•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
@	Illiquid security. At August 31, 2012, the aggregate value of illiquid securities was $3,699,920, which represented 1.51% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.

Statements of net assets
Delaware Tax-Free Colorado Fund


Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Colorado Fund
Net asset value Class A (A)	$	11.64
Sales charge (4.50% of offering price) (B)		0.55
Offering price	$	12.19

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)		See the current prospectus for purchases of $100,000 or more.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
ASSURED GTY — Insured by Assured Guaranty Corporation
FGIC — Insured by Financial Guaranty Insurance Company
FHA — Federal Housing Administration
FHLMC — Federal Home Loan Mortgage Corporation collateral
HUD — Housing and Urban Development Section 8
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance
SGI — Insured by Syncora Guarantee Inc.
VA — Veterans Administration collateral

See accompanying notes, which are an integral part of the financial statements.

Delaware Tax-Free Idaho Fund

August 31, 2012

		Principal amount		Value
Municipal Bonds – 98.07%
Corporate Revenue Bonds – 5.93%
	Nez Perce County Pollution Control Revenue
	(Potlatch Project) 6.00% 10/1/24	$	5,035,000	$	5,034,647
	Power County Industrial Development Revenue
	(FMC Project) 6.45% 8/1/32 (AMT)		2,000,000		2,003,420
	Power County Pollution Control Revenue
	(FMC Project) 5.625% 10/1/14		2,475,000		2,477,228
					9,515,295
Education Revenue Bonds – 8.39%
	Boise State University
	(General Project) Series A
	4.00% 4/1/37		1,250,000		1,303,075
	5.00% 4/1/42		1,350,000		1,543,765
	(General Refunding) Series A
	4.25% 4/1/32 (NATL-RE)		750,000		789,293
	5.00% 4/1/39		1,000,000		1,111,390
	Idaho Housing & Financing Association Nonprofit
	Facilities Revenue (North Star Charter School Project)
	Series A 9.50% 7/1/39		1,000,000		1,111,440
	Idaho State University Revenue 5.00% 4/1/20 (AGM)		1,130,000		1,158,657
	University of Idaho (General Refunding)
	•Series 2011 5.25% 4/1/41		1,970,000		2,327,692
	Series A 5.00% 4/1/21 (AMBAC)		1,150,000		1,266,553
	•Series B 4.50% 4/1/41 (AGM)		1,000,000		1,135,280
	Series B 5.00% 4/1/28		1,000,000		1,145,310
	Series B 5.00% 4/1/32		500,000		563,930
					13,456,385
Electric Revenue Bonds – 4.89%
	Boise-Kuna Idaho Irrigation District Revenue
	(Arrowrock Hydroelectric Project) 6.30% 6/1/31		1,000,000		1,144,350
	Puerto Rico Electric Power Authority Revenue
	Series A 5.00% 7/1/42		1,000,000		1,023,740
	Series TT 5.00% 7/1/32		3,170,000		3,270,616
	Series TT 5.00% 7/1/37		210,000		214,183
	Series ZZ 5.25% 7/1/26		2,000,000		2,191,240
					7,844,129

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds – 7.95%
	Idaho Health Facilities Authority Revenue
	(St. Luke’s Health System Project) Series A
	4.50% 3/1/47	$	1,500,000	$	1,537,560
	5.00% 3/1/47		1,500,000		1,615,380
	6.50% 11/1/23		250,000		296,485
	6.75% 11/1/37		1,250,000		1,483,025
	(St. Luke’s Regional Medical Center Project)
	5.00% 7/1/35 (AGM)		2,500,000		2,764,799
	(Trinity Health Center Group)
	Series B 6.125% 12/1/28		1,000,000		1,194,760
	Series D 4.50% 12/1/37		1,205,000		1,296,460
	Puerto Rico Industrial Tourist Educational Medical &
	Environmental Control Facilities Financing Authority
	(Auxilio Mutuo) Series A 6.00% 7/1/33		2,245,000		2,559,188
					12,747,657
Housing Revenue Bonds – 2.87%
	Idaho Housing & Finance Association Single Family
	Mortgage Revenue
	Series A 6.05% 7/1/13 (AMBAC) (FHA) (VA) (AMT)		5,000		5,014
	Series A 6.10% 7/1/16 (FHA) (VA) (AMT)		5,000		5,013
	Series A Class II 4.375% 7/1/32		1,000,000		1,066,870
	Series B 6.45% 7/1/15 (AMT)		5,000		5,015
	Series B Class I 5.00% 7/1/37 (AMT)		435,000		444,331
	Series B Class I 5.50% 7/1/38		10,000		10,042
	Series C Class II 4.95% 7/1/31		1,000,000		1,089,050
	Series G-2 6.15% 7/1/15 (FHA) (VA) (AMT)		15,000		15,043
	Series I-1 Class I 5.45% 1/1/39 (AMT)		825,000		854,304
	Puerto Rico Housing Finance Authority Subordinated-
	Capital Fund Modernization 5.125% 12/1/27		1,000,000		1,105,050
					4,599,732
Lease Revenue Bonds – 2.66%
	Idaho Housing & Finance Association Revenue
	(TDF Facilities PJ-Recovery Zone) Series A
	6.50% 2/1/26		1,370,000		1,535,688
	7.00% 2/1/36		1,500,000		1,672,335
	Puerto Rico Public Buildings Authority Revenue
	(Government Facilities) Series U 5.25% 7/1/42		1,035,000		1,052,823
					4,260,846

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds – 21.58%
	Ada & Canyon Counties Joint School District #2 Meridian
	(School Board Guaranteed Program)
	4.50% 7/30/22	$	1,500,000	$	1,786,950
	4.75% 2/15/20		1,000,000		1,092,780
	5.50% 7/30/16		1,305,000		1,547,365
	Bannock County School District #25 Pocatello/Chubbuck
	(School Board Guaranteed Program)
	5.00% 8/15/15		1,040,000		1,133,163
	5.00% 8/15/16		1,100,000		1,194,963
	Boise City Independent School District
	5.00% 8/1/24 (AGM)		1,500,000		1,733,820
	Bonneville Joint School District #93
	(School Board Guaranteed program)
	5.00% 9/15/30		1,515,000		1,857,708
	5.00% 9/15/31		870,000		1,060,739
	Canyon County School District #131 Nampa
	(School Board Guaranteed Program)
	Series B 5.00% 8/15/23		1,295,000		1,630,755
	Canyon County School District #132 Caldwell
	5.00% 7/30/15 (NATL-RE) (FGIC)		2,000,000		2,232,760
	Series A 5.00% 9/15/22 (AGM)		1,725,000		2,024,788
	Series A 5.00% 9/15/23 (AGM)		1,810,000		2,124,560
	Idaho Board Bank Authority Revenue
	Series A 5.00% 9/15/28		1,250,000		1,445,175
	Series A 5.00% 9/15/31		1,025,000		1,231,148
	Series A 5.00% 9/15/33		1,125,000		1,335,578
	Series A 5.25% 9/15/26		2,000,000		2,366,660
	Series C 4.00% 9/15/29		1,320,000		1,459,181
	Lemhi County 5.20% 8/1/27 (AGM)		2,145,000		2,180,221
	Nampa City Series B 5.00% 8/1/21 (NATL-RE) (FGIC)		2,475,000		2,756,728
	Twin Falls County School District #413 Filer
	(School Board Guaranteed Program) 5.25% 9/15/25		2,000,000		2,398,840
					34,593,882
§Pre-Refunded Bonds – 8.88%
	Ada & Canyon Counties Joint School District #3 Kuna
	(School Board Guaranteed Program) 4.75% 8/15/22-14		600,000		651,996
	Boise State University Revenue
	(General Refunding) Series A
	5.00% 4/1/18-14 (NATL-RE) (FGIC)		1,500,000		1,611,270

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Boise State University Revenue
	(Student Union & Housing System)
	5.00% 4/1/17-13 (AMBAC)	$	500,000	$	513,970
	Idaho State Building Authority Revenue Series A
	5.00% 9/1/33-13 (SGI)		1,000,000		1,047,800
	5.00% 9/1/43-13 (SGI)		5,750,000		6,024,849
	Idaho State University Revenue
	5.00% 4/1/23-13 (AGM)		2,115,000		2,174,093
	Moscow Sewer Revenue 5.00% 11/1/22-12 (AGM)		2,175,000		2,191,661
	Puerto Rico Sales Tax Financing Revenue First
	Subordinate Series A 5.50% 8/1/28-19		15,000		19,443
					14,235,082
Special Tax Revenue Bonds – 22.74%
	Coeur d’Alene Local Improvement District #6
	6.10% 7/1/14		45,000		45,597
	Guam Government Business Privilege Tax Revenue Series A
	5.125% 1/1/42		545,000		606,476
	5.25% 1/1/36		705,000		796,185
	Idaho Board Bank Authority Revenue Series B
	5.00% 9/15/30 (NATL-RE)		725,000		822,252
	Idaho Water Resource Board
	(Ground Water Rights Mitigation)
	Series A 5.00% 9/1/32		3,565,000		3,897,970
	Ketchum Urban Renewal Agency 5.50% 10/15/34		1,500,000		1,614,240
	Nampa Development Revenue 5.90% 3/1/30		3,000,000		3,238,110
	Puerto Rico Sales Tax Financing Revenue First Subordinate
	^(Capital Appreciation) Series A
	5.03% 8/1/44 (NATL-RE)		5,125,000		881,193
	5.04% 8/1/45 (NATL-RE)		5,280,000		851,189
	Ω(Convertible Capital Appreciation) Series A 6.75% 8/1/32		735,000		761,166
	Series A 5.00% 8/1/26		1,300,000		1,445,756
	Series A 5.25% 8/1/27		3,000,000		3,405,689
	Series A 5.50% 8/1/42		3,500,000		3,783,779
	Series A-1 5.00% 8/1/43		1,060,000		1,114,039
	Series B 5.75% 8/1/37		2,660,000		2,970,236
	Series C 5.00% 8/1/40		2,500,000		2,710,250
	Series C 5.50% 8/1/40		1,960,000		2,130,716
	(Un-Refunded) Series A 5.50% 8/1/28		1,385,000		1,589,080

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan Note) Series A
	5.00% 10/1/29	$	2,220,000	$	2,425,661
	5.25% 10/1/20		500,000		532,620
	5.25% 10/1/24		800,000		843,288
					36,465,492
State & Territory General Obligation Bonds – 3.43%
	Puerto Rico Commonwealth Public Improvement
	Series A 5.00% 7/1/41		750,000		747,113
	Series A 5.75% 7/1/41		3,850,000		4,117,690
	Series E 5.375% 7/1/30		600,000		640,362
					5,505,165
Transportation Revenue Bonds – 6.69%
	Boise Airport Revenue (Air Terminal Facilities Project)
	5.75% 9/1/19 (AGM) (AMT)		1,000,000		1,215,540
	5.75% 9/1/20 (AGM) (AMT)		1,000,000		1,226,040
	Idaho Housing & Finance Association Grant Revenue
	(Anticipated Federal Highway Trust)
	5.00% 7/15/24 (NATL-RE)		2,000,000		2,254,140
	Series A 5.25% 7/15/20 (ASSURED GTY)		2,750,000		3,281,466
	Series A 5.25% 7/15/25 (ASSURED GTY)		1,500,000		1,779,210
	Puerto Rico Highway & Transportation Authority Revenue
	Series K 5.00% 7/1/30		890,000		902,958
	Un-Refunded Series W 5.50% 7/1/15		55,000		60,125
					10,719,479
Water & Sewer Revenue Bonds – 2.06%
	Idaho Board Bank Authority Revenue
	Series C 5.375% 9/15/38		1,000,000		1,133,530
	Puerto Rico Commonwealth Aqueduct &
	Sewer Authority Revenue Senior Lien Series A
	5.125% 7/1/37		1,500,000		1,504,486
	5.25% 7/1/42		265,000		266,701
	6.00% 7/1/47		365,000		399,733
					3,304,450
Total Municipal Bonds (cost $145,107,302)					157,247,594

Statements of net assets
Delaware Tax-Free Idaho Fund

		Number of shares		Value
Short-Term Investments – 1.04%
Money Market Mutual Fund – 0.78%
	Dreyfus Cash Management Fund	1,249,307	$	1,249,307
				1,249,307

		Principal amount
¤Variable Rate Demand Note – 0.26%
	Idaho State University Foundation Revenue
	(L.E. & Thelma Stephens Project)
	0.17% 5/1/21 (LOC-Wells Fargo Bank, N.A.)	$420,000		420,000
				420,000
Total Short-Term Investments (cost $1,669,307)				1,669,307

Total Value of Securities – 99.11%
	(cost $146,776,609)			158,916,901
Receivables and Other Assets
	Net of Liabilities – 0.89%			1,428,313
Net Assets Applicable to 13,099,210
	Shares Outstanding – 100.00%		$	160,345,214

Net Asset Value – Delaware Tax-Free Idaho Fund
	Class A ($119,025,624 / 9,721,698 Shares)			$12.24
Net Asset Value – Delaware Tax-Free Idaho Fund
	Class B ($581,681 / 47,596 Shares)			$12.22
Net Asset Value – Delaware Tax-Free Idaho Fund
	Class C ($40,737,909 / 3,329,916 Shares)			$12.23

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)			$	149,358,034
Distributions in excess of net investment income				(16,644	)
Accumulated net realized loss on investments				(1,136,468	)
Net unrealized appreciation of investments				12,140,292
Total net assets			$	160,345,214


•	Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
^	Zero coupon security. The rate shown is the yield at the time of purchase.
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Idaho Fund
Net asset value Class A (A)	$	12.24
Sales charge (4.50% of offering price) (B)		0.58
Offering price	$	12.82

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
FGIC — Insured by Financial Guaranty Insurance Company
FHA — Federal Housing Administration
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
SGI — Insured by Syncora Guarantee Inc.
VA — Veterans Administration collateral

See accompanying notes, which are an integral part of the financial statements.

Statements of net assets
Delaware Tax-Free New York Fund	August 31, 2012

		Principal amount		Value
Municipal Bonds – 98.31%
Corporate Revenue Bonds – 9.48%
	Chautauqua County Industrial Development Agency
	Exempt Facilities Revenue (NRG Dunkirk Power Project)
	5.875% 4/1/42	$	1,000,000	$	1,126,030
	Jefferson County Industrial Development Agency
	Solid Waste Disposal (International Paper)
	Series A 5.20% 12/1/20 (AMT)		350,000		364,322
	Nassau County Tobacco Settlement Revenue
	(Asset-Backed) Series A-3 5.125% 6/1/46		600,000		421,110
•	New York City Industrial Development
	Agency Special Facilities Revenue
	(American Airlines-JFK International Airport)
	7.75% 8/1/31 (AMT)		250,000		262,915
	New York Liberty Development Revenue
	(Goldman Sachs Headquarters) 5.25% 10/1/35		625,000		729,013
	(Second Priority-Bank of America Tower)
	5.625% 7/15/47		500,000		561,415
	6.375% 7/15/49		1,265,000		1,453,800
	Suffolk County Industrial Development Agency Revenue
	(Keyspan-Port Jefferson Energy Center)
	5.25% 6/1/27 (AMT)		250,000		257,083
	Suffolk Tobacco Asset Securitization Series B 5.25% 6/1/37		700,000		747,572
	TSASC Revenue (Asset-Backed) Series 1
	5.00% 6/1/34		500,000		381,405
	5.125% 6/1/42		1,000,000		736,760
					7,041,425
Education Revenue Bonds – 16.99%
	Albany Industrial Development Agency Civic Facilities
	Revenue (Brighter Choice Charter School)
	Series A 5.00% 4/1/37		250,000		241,080
	Buffalo & Erie County Industrial Land Development
	(Buffalo State College Foundation Housing) 6.00% 10/1/31		525,000		642,279
	Hempstead Town Local Development Revenue
	(Molloy College Project) 5.75% 7/1/23		400,000		473,320
	Madison County Capital Resource Revenue
	(Colgate University Project) Series A 5.00% 7/1/28		400,000		467,472
	Monroe County Industrial Development Revenue
	(Nazareth College Rochester Project)
	5.25% 10/1/31		500,000		561,980
	5.50% 10/1/41		500,000		555,630

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	New York City Trust for Cultural Resources
	(Whitney Museum of American Art) 5.00% 7/1/31	$	500,000	$	564,380
	New York State Dormitory Authority Revenue
	(Brooklyn Law School) 5.75% 7/1/33		340,000		391,357
	(Cornell University) Series A
	4.75% 7/1/29		100,000		114,625
	5.00% 7/1/34		170,000		195,422
	(Manhattan Marymount) 5.00% 7/1/24		350,000		380,870
	(Mt. Sinai School of Medicine) 5.125% 7/1/39		500,000		552,015
	(New York University) Series A 5.25% 7/1/34		500,000		598,630
	(Rockefeller University) Series A 5.00% 7/1/27		250,000		303,258
	(Skidmore College) Series A 5.00% 7/1/21		325,000		394,485
	(St. Joseph’s College) 5.25% 7/1/25		500,000		540,770
	(Teachers College) 5.50% 3/1/39		250,000		282,330
	(University of Rochester)
	Series A 5.125% 7/1/39		250,000		281,033
	Series A-2 4.375% 7/1/20		225,000		244,485
	(Yeshiva University) Series A 5.00% 11/1/40		1,000,000		1,112,979
	Onondaga Civic Development Revenue
	(Le Moyne College Project) 5.20% 7/1/29		500,000		545,070
	Onondaga County Trust for Cultural Research Revenue
	(Syracuse University Project) Series B 5.00% 12/1/19		350,000		427,553
	St. Lawrence County Industrial Development Agency Civic
	Facility Revenue (St. Lawrence University)
	Series A 5.00% 10/1/16		500,000		574,515
	Suffolk County Industrial Development Agency Civic Facility
	Revenue (New York Institute of Technology Project)
	5.00% 3/1/26		600,000		620,622
	Troy Industrial Development Authority Civic Facility Revenue
	(Rensselaer Polytechnic) Series E 5.20% 4/1/37		500,000		557,170
	Yonkers Economic Development Education Revenue
	(Charter School Educational Excellence)
	Series A 6.25% 10/15/40		600,000		627,516
	Yonkers Industrial Development Agency Civic Facility
	Revenue (Sarah Lawrence College Project)
	Series A 6.00% 6/1/29		325,000		372,925
					12,623,771

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount		Value
Municipal Bonds (continued)
Electric Revenue Bonds – 3.50%
	Long Island Power Authority Electric System Revenue
	Series A 5.00% 9/1/37	$	500,000	$	561,700
	Series A 5.75% 4/1/39		350,000		418,856
	Series B 5.75% 4/1/33		250,000		297,445
	New York Power Authority Series A 5.00% 11/15/38		500,000		579,239
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.00% 7/1/28		190,000		198,932
	Series ZZ 5.25% 7/1/26		500,000		547,810
					2,603,982
Healthcare Revenue Bonds – 15.41%
	Albany Industrial Development Agency Civic Facility
	Revenue (St. Peter’s Hospital Project)
	Series A 5.25% 11/15/32		800,000		861,912
	East Rochester Housing Authority Revenue
	(Senior Living-Woodland Village Project) 5.50% 8/1/33		500,000		498,130
	Monroe County Industrial Development Insured Mortgage
	Revenue (University Hospital of Rochester Project)
	5.50% 8/15/40 (FHA)		585,000		675,774
	New York City Health & Hospital Revenue (Health System)
	Series A 5.00% 2/15/30		500,000		565,110
	New York Dormitory Authority Revenue
	(Catholic Health Long Island Obligation Group)
	5.00% 7/1/27		400,000		409,760
	(Chapel Oaks) 5.45% 7/1/26 (LOC-Allied Irish Bank)		450,000		451,058
	(Winthrop South Nassau Hospital) Series B 5.50% 7/1/23		500,000		508,200
	New York Dormitory Authority Revenue
	Non-State Supported Debt
	(Memorial Sloan-Kettering)
	5.00% 7/1/41		180,000		206,347
	Series 1 4.375% 7/1/34		600,000		652,182
	Series 1 5.00% 7/1/23		600,000		737,052
	Series 1 5.00% 7/1/35		225,000		248,661
	Series B 5.00% 5/1/39		500,000		548,350
	Subordinate Series A2 5.00% 7/1/26		500,000		566,860
	(Mt. Sinai Hospital) Series A 5.00% 7/1/26		600,000		674,946
	(North Shore Long Island Jewish Group) Series A
	5.00% 5/1/41		500,000		549,155
	5.50% 5/1/37		500,000		569,330

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	New York Dormitory Authority Revenue
	Non-State Supported Debt
	(Orange Regional Medical Center)
	6.125% 12/1/29	$	540,000	$	593,465
	6.25% 12/1/37		250,000		272,165
	Suffolk County Economic Development Revenue
	(Catholic Health Services) 5.00% 7/1/28		1,000,000		1,138,750
	(Peconic Landing Southland) 6.00% 12/1/40		650,000		721,487
					11,448,694
Housing Revenue Bonds – 1.04%
	New York City Housing Development Multifamily Housing
	Revenue Series G-1 4.875% 11/1/39 (AMT)		250,000		257,483
	New York Mortgage Agency Revenue 44th Series
	4.35% 10/1/24 (AMT)		485,000		514,560
					772,043
Lease Revenue Bonds – 14.15%
	Battery Park City Authority Revenue
	Series A 5.00% 11/1/26		250,000		262,543
	Erie County Industrial Development Agency School Facility
	Revenue (Buffalo City School District)
	Series A 5.25% 5/1/25		500,000		580,670
	Hudson Yards Infrastructure Revenue Series A
	5.00% 2/15/47		500,000		529,730
	5.25% 2/15/47		600,000		676,500
	5.75% 2/15/47		1,000,000		1,175,030
	New York City Industrial Development Agency
	Special Airport Facility Revenue
	(Airis JFK I Project) Series A 5.50% 7/1/28 (AMT)		500,000		501,445
	(Senior Trips) Series A 5.00% 7/1/28 (AMT)		1,500,000		1,588,949
	New York Liberty Development (World Trade Center Project)
	5.00% 11/15/31		500,000		574,475
	5.00% 3/15/44		600,000		646,440
	5.75% 11/15/51		1,055,000		1,250,871
	Onondaga County Industrial Development Agency Revenue
	(Air Cargo) 7.25% 1/1/32 (AMT)		500,000		506,990
	Puerto Rico Public Finance (Commonwealth Appropriation)
	Series B 5.50% 8/1/31		870,000		923,114

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Tobacco Settlement Financing Authority Revenue
	(Asset-Backed) Series B-1C
	5.50% 6/1/20	$	200,000	$	207,636
	5.50% 6/1/21		500,000		519,090
	United Nations Development Revenue
	Series A 5.00% 7/1/26		500,000		568,465
					10,511,948
Local General Obligation Bonds – 4.88%
	New York City
	Series C-1 5.00% 10/1/19		500,000		588,285
	Series D 5.00% 11/1/34		125,000		134,401
	Series D-1 5.00% 10/1/36		1,000,000		1,142,160
	Series I-1 5.375% 4/1/36		500,000		578,695
	New York State Dormitory Authority
	Revenue Non-State Supported Debt
	(School Districts-Financing Program) Series A
	5.00% 10/1/23		500,000		600,685
	5.00% 10/1/25 (AGM)		500,000		581,230
					3,625,456
§Pre-Refunded Bonds – 2.15%
	New York State Dormitory Authority Revenue
	(Columbia University) Series A 5.00% 7/1/23-13		500,000		520,035
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series Y 5.50% 7/1/36-16		475,000		568,566
	Schenectady Metroplex Development Authority Revenue
	Series A 5.375% 12/15/21-12		500,000		507,455
					1,596,056
Special Tax Revenue Bonds – 12.91%
	Brooklyn Arena Local Development Revenue
	(Barclays Center Project)
	6.25% 7/15/40		500,000		581,585
	6.375% 7/15/43		500,000		584,530
	6.50% 7/15/30		500,000		599,215
	Guam Government Business Privilege Tax Revenue Series A
	5.125% 1/1/42		185,000		205,868
	5.25% 1/1/36		240,000		271,042
	Metropolitan Transportation Authority Revenue
	Series B 5.00% 11/15/34		500,000		565,555

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	New York City Industrial Development Agency
	(YMCA of Greater New York Project) 5.00% 8/1/36	$	1,000,000	$	1,048,270
	New York City Transitional Finance Authority Revenue
	(Building Aid) Series S-1A 5.25% 7/15/37		1,000,000		1,159,310
	(Future Tax Secured)
	Fiscal 2011 5.00% 2/1/26		250,000		299,770
	Fiscal 2011 5.25% 2/1/29		500,000		602,300
	Series B 5.00% 11/1/18		500,000		593,425
	Series C 5.25% 11/1/25		500,000		609,360
	New York City Trust for Cultural Resources Revenue
	(Museum Modern Art) Series A1 5.00% 4/1/31		250,000		288,910
	New York Dormitory Authority State Personal Income Tax
	Revenue Series C 5.00% 3/15/34		500,000		578,295
	New York Dormitory Authority State Supported Debt
	Revenue (Consolidated Services Contract)
	5.00% 7/1/17 (AGM)		500,000		592,700
	New York Sales Tax Asset Receivables
	Series A 5.25% 10/15/27 (AMBAC)		500,000		546,625
Ω	Puerto Rico Sales Tax Financing Revenue First Subordinate
	(Convertible Capital Appreciation) Series A 6.75% 8/1/32		185,000		191,586
	Virgin Islands Public Finance Authority Revenue
	(Matching Fund Loan Note-Senior Lien)
	Series A 5.00% 10/1/29		250,000		273,160
					9,591,506
State & Territory General Obligation Bonds – 5.55%
	New York City Series E 5.00% 8/1/28		125,000		146,680
	New York State Series A 5.00% 3/1/38		500,000		573,185
	Puerto Rico Commonwealth Government Development
	Bank Refunding Remarketed
	4.75% 12/1/15 (NATL-RE)		230,000		234,402
	Puerto Rico Commonwealth Public Improvement Series A
	5.00% 7/1/41		1,000,000		996,150
	5.50% 7/1/19 (NATL-RE) (IBC)		520,000		582,728
	5.50% 7/1/39		500,000		520,970
	5.75% 7/1/41		1,000,000		1,069,530
					4,123,645

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 9.15%
	Metropolitan Transportation Authority Revenue
	Series 2008C 6.50% 11/15/28	$	200,000	$	256,646
	Series A 5.00% 11/15/41		500,000		556,275
	Series C 5.00% 11/15/32		500,000		577,575
	Series C 5.00% 11/15/41		200,000		224,544
	Series D 5.00% 11/15/32		500,000		577,575
	Series D 5.25% 11/15/27		500,000		585,830
	Series E 4.00% 11/15/38		535,000		542,554
	Series F 5.00% 11/15/15		150,000		170,378
	New York State Thruway Authority General Revenue Series I
	5.00% 1/1/32		700,000		807,968
	5.00% 1/1/42		500,000		562,435
	Port Authority New York & New Jersey
	(Consolidated-One Hundred Fifty-Third) 5.00% 7/15/35		250,000		278,510
	(JFK International Air Terminal)
	6.00% 12/1/42		700,000		813,525
	6.50% 12/1/28		550,000		602,894
	Triborough Bridge & Tunnel Authority Revenue
	Series C 5.00% 11/15/24		200,000		240,144
					6,796,853
Water & Sewer Revenue Bonds – 3.10%
	New York City Municipal Water Finance Authority
	Water & Sewer System Revenue
	(Second General Resolution)
	Series A 5.75% 6/15/40		200,000		241,296
	Series BB 5.25% 6/15/44		500,000		585,505
	Series FF 5.50% 6/15/40		250,000		294,078
	Series HH 5.00% 6/15/32		500,000		584,095
	New York State Environmental Facilities Revenue
	Clean Water & Drinking Revolving Funds 5.00% 6/15/30		500,000		600,465
					2,305,439
Total Municipal Bonds (cost $66,742,050)					73,040,818

		Principal amount		Value
Short-Term Investments – 2.02%
¤Variable Rate Demand Notes – 2.02%
	City of New York Various Subordinate Series A-7
	0.16% 8/1/20 (LOC-JPMorgan Chase Bank, N.A.)	$	500,000	$	500,000
	New York City Adjusted Series C
	0.16% 10/1/23 (LOC-JPMorgan Chase Bank, N.A.)		500,000		500,000
	New York City Industrial Development Agency Civic Facility
	Revenue (American Civil Project)
	0.16% 6/1/35 (LOC-JPMorgan Chase Bank, N.A.)		500,000		500,000
Total Short-Term Investments (cost $1,500,000)					1,500,000

Total Value of Securities – 100.33%
	(cost $68,242,050)				74,540,818
Liabilities Net of Receivables
	and Other Assets – (0.33%)				(242,867		)
Net Assets Applicable to 6,370,019
	Shares Outstanding – 100.00%			$	74,297,951

Net Asset Value – Delaware Tax-Free New York Fund
	Class A ($53,456,479 / 4,580,046 Shares)					$11.67
Net Asset Value – Delaware Tax-Free New York Fund
	Class B ($317,614 / 27,270 Shares)					$11.65
Net Asset Value – Delaware Tax-Free New York Fund
	Class C ($20,523,858 / 1,762,703 Shares)					$11.64

Components of Net Assets at August 31, 2012:
Shares of beneficial interest (unlimited authorization – no par)				$	67,851,237
Undistributed net investment income					7,099
Accumulated net realized gain on investments					140,847
Net unrealized appreciation of investments					6,298,768
Total net assets				$	74,297,951

Statements of net assets
Delaware Tax-Free New York Fund

•Variable rate security. The rate shown is the rate as of August 31, 2012. Interest rates reset periodically.

§Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”

ΩStep coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.

¤Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of August 31, 2012.

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free New York Fund
Net asset value Class A (A)	$	11.67
Sales charge (4.50% of offering price) (B)		0.55
Offering price	$	12.22

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FHA — Federal Housing Administration
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation

See accompanying notes, which are an integral part of the financial statements.

Statements of operations
	Year Ended August 31, 2012

	Delaware Tax-Free				Delaware Tax-Free				Delaware Tax-Free
	Arizona Fund				California Fund				Colorado Fund
Investment Income:
Interest		$	5,037,632			$	4,712,205			$	11,307,123

Expenses:
Management fees			527,114				526,572				1,307,764
Distribution expenses – Class A			245,223				194,314				559,912
Distribution expenses – Class B			5,040				9,485				3,132
Distribution expenses – Class C			68,467				167,318				134,732
Dividend disbursing and transfer agent
fees and expenses			52,026				63,602				117,387
Accounting and administration expenses			41,305				37,498				93,158
Audit and tax			12,983				13,052				16,033
Reports and statements to shareholders			12,411				10,837				21,783
Registration fees			12,146				11,324				7,785
Legal fees			10,284				8,915				23,372
Pricing fees			7,908				9,965				10,853
Trustees’ fees			5,095				4,581				11,476
Insurance fees			2,392				1,565				4,725
Custodian fees			2,181				2,565				5,280
Dues and services			1,978				1,362				1,214
Consulting fees			927				906				2,122
Trustees’ expenses			314				262				698
			1,007,794				1,064,123				2,321,426
Less fees waived			(66,858	)			(148,126	)			(220,336	)
Less expense paid indirectly			(42	)			(30	)			(92	)
Total operating expenses			940,894				915,967				2,100,998
Net Investment Income			4,096,738				3,796,238				9,206,125

Net Realized and Unrealized Gain:
Net realized gain on investments			1,052,973				845,787				2,424,292
Net change in unrealized appreciation
(depreciation) of investments			5,070,394				7,598,268				13,431,285
Net Realized and Unrealized Gain			6,123,367				8,444,055				15,855,577

Net Increase in Net Assets
Resulting from Operations		$	10,220,105			$	12,240,293			$	25,061,702

See accompanying notes, which are an integral part of the financial statements.

	Delaware Tax-Free				Delaware Tax-Free
	Idaho Fund				New York Fund
Investment Income:
Interest		$	6,688,128			$	2,869,196

Expenses:
Management fees			811,685				345,491
Distribution expenses – Class A			273,081				112,089
Distribution expenses – Class B			6,319				4,602
Distribution expenses – Class C			375,835				173,367
Dividend disbursing and transfer agent
fees and expenses			75,387				50,422
Accounting and administration expenses			57,813				24,603
Reports and statements to shareholders			14,759				8,493
Audit and tax			14,503				12,509
Legal fees			13,581				5,826
Registration fees			9,739				13,980
Pricing fees			9,667				11,619
Trustees’ fees			7,087				2,982
Custodian fees			3,400				1,448
Insurance fees			2,536				1,013
Dues and services			1,440				1,325
Consulting fees			1,310				575
Trustees’ expenses			421				168
			1,678,563				770,512
Less fees waived			(93,710	)			(135,258	)
Less expense paid indirectly			(56	)			(20	)
Total operating expenses			1,584,797				635,234
Net Investment Income			5,103,331				2,233,962

Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments			(134,746	)			621,955
Net change in unrealized appreciation
(depreciation) of investments			6,365,479				4,168,664
Net Realized and Unrealized Gain			6,230,733				4,790,619

Net Increase in Net Assets
Resulting from Operations		$	11,334,064			$	7,024,581

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free Arizona Fund

	Year Ended
	8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	4,096,738		$	4,224,609
Net realized gain		1,052,973			26,324
Net change in unrealized appreciation (depreciation)		5,070,394			(4,245,010	)
Net increase in net assets resulting from operations		10,220,105			5,923

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(3,838,812	)		(3,935,696	)
Class B		(15,982	)		(48,023	)
Class C		(216,639	)		(229,913	)

Net realized gain:
Class A		(25,133	)		(250,507	)
Class B		(172	)		(5,139	)
Class C		(1,765	)		(18,335	)
		(4,098,503	)		(4,487,613	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		5,094,394			9,590,092
Class B		—			468
Class C		840,858			802,573

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		2,768,726			2,229,671
Class B		14,153			31,965
Class C		177,549			152,719
		8,895,680			12,807,488

	Year Ended
	8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(9,093,206	)	$	(20,506,737	)
Class B		(574,575	)		(2,067,231	)
Class C		(1,109,478	)		(1,832,935	)
		(10,777,259	)		(24,406,903	)
Decrease in net assets derived from
capital share transactions		(1,881,579	)		(11,599,415	)
Net Increase (Decrease) in Net Assets		4,240,023			(16,081,105	)

Net Assets:
Beginning of year		103,045,367			119,126,472
End of year	$	107,285,390		$	103,045,367

Undistributed net investment income	$	25,309		$	25,309

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free California Fund

	Year Ended
	8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	3,796,238		$	3,588,094
Net realized gain (loss)		845,787			(718,355	)
Net change in unrealized appreciation (depreciation)		7,598,268			(2,957,481	)
Net increase (decrease) in net assets
resulting from operations		12,240,293			(87,742	)

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(3,189,609	)		(2,970,212	)
Class B		(32,159	)		(71,308	)
Class C		(563,689	)		(536,304	)
		(3,785,457	)		(3,577,824	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		34,582,426			13,966,047
Class B		30,390			446
Class C		4,936,706			3,882,265

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		2,265,497			1,792,877
Class B		22,982			53,523
Class C		454,958			389,108
		42,292,959			20,084,266

	Year Ended
	8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(12,958,552	)	$	(18,652,984	)
Class B		(539,530	)		(1,868,698	)
Class C		(2,910,386	)		(4,362,004	)
		(16,408,468	)		(24,883,686	)
Increase (decrease) in net assets derived from
capital share transactions		25,884,491			(4,799,420	)
Net Increase (Decrease) in Net Assets		34,339,327			(8,464,986	)

Net Assets:
Beginning of year		83,216,597			91,681,583
End of year	$	117,555,924		$	83,216,597

Undistributed net investment income	$	18,763		$	18,763

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free Colorado Fund

	Year Ended
	8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	9,206,125		$	9,935,304
Net realized gain (loss)		2,424,292			(1,090,497	)
Net change in unrealized appreciation (depreciation)		13,431,285			(8,167,863	)
Net increase in net assets resulting from operations		25,061,702			676,944

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(8,749,124	)		(9,065,106	)
Class B		(10,110	)		(32,264	)
Class C		(425,246	)		(473,556	)
		(9,184,480	)		(9,570,926	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		10,143,467			9,661,260
Class B		12			304
Class C		1,744,888			1,768,344

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		6,567,239			5,999,728
Class B		5,937			21,271
Class C		360,117			348,473
		18,821,660			17,799,380

	Year Ended
	8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(17,038,942	)	$	(28,796,246	)
Class B		(463,156	)		(776,210	)
Class C		(1,967,053	)		(3,449,371	)
		(19,469,151	)		(33,021,827	)
Decrease in net assets derived from
capital share transactions		(647,491	)		(15,222,447	)
Net Increase (Decrease) in Net Assets		15,229,731			(24,116,429	)

Net Assets:
Beginning of year		230,012,743			254,129,172
End of year	$	245,242,474		$	230,012,743

Undistributed net investment income	$	352,562		$	352,563

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free Idaho Fund

	Year Ended
	8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	5,103,331		$	4,747,970
Net realized loss		(134,746	)		(974,509	)
Net change in unrealized appreciation (depreciation)		6,365,479			(3,975,375	)
Net increase (decrease) in net assets
resulting from operations		11,334,064			(201,914	)

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(3,979,888	)		(3,594,235	)
Class B		(18,318	)		(47,733	)
Class C		(1,087,724	)		(1,085,338	)

Net realized gain:
Class A		—			(58,688	)
Class B		—			(1,213	)
Class C		—			(22,123	)
		(5,085,930	)		(4,809,330	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		27,230,993			22,046,186
Class B		133			—
Class C		9,308,402			9,226,467

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		2,829,553			2,621,700
Class B		16,152			38,486
Class C		937,685			841,625
		40,322,918			34,774,464

	Year Ended
	8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(14,499,061	)	$	(26,491,952	)
Class B		(374,954	)		(1,483,183	)
Class C		(6,882,006	)		(8,585,502	)
		(21,756,021	)		(36,560,637	)
Increase (decrease) in net assets derived from
capital share transactions		18,566,897			(1,786,173	)
Net Increase (Decrease) in Net Assets		24,815,031			(6,797,417	)

Net Assets:
Beginning of year		135,530,183			142,327,600
End of year	$	160,345,214		$	135,530,183

Distributions in excess of net investment income	$	(16,644	)	$	(16,644	)

See accompanying notes, which are an integral part of the financial statements.

Statements of changes in net assets
Delaware Tax-Free New York Fund

	Year Ended
	8/31/12			8/31/11
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,233,962		$	1,848,243
Net realized gain (loss)		621,955			(461,636	)
Net change in unrealized appreciation (depreciation)		4,168,664			(1,450,553	)
Net increase (decrease) in net assets
resulting from operations		7,024,581			(63,946	)

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,681,430	)		(1,400,126	)
Class B		(13,909	)		(17,505	)
Class C		(520,282	)		(425,309	)
		(2,215,621	)		(1,842,940	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		18,938,318			10,714,054
Class B		37,194			—
Class C		6,044,733			3,902,137

Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,394,783			1,022,817
Class B		10,269			12,841
Class C		397,016			315,491
		26,822,313			15,967,340

	Year Ended
	8/31/12			8/31/11
Capital Share Transactions (continued):
Cost of shares redeemed:
Class A	$	(7,361,248	)	$	(10,992,437	)
Class B		(240,795	)		(243,301	)
Class C		(1,493,916	)		(2,976,393	)
		(9,095,959	)		(14,212,131	)
Increase in net assets derived from
capital share transactions		17,726,354			1,755,209
Net Increase (Decrease) in Net Assets		22,535,314			(151,677	)

Net Assets:
Beginning of year		51,762,637			51,914,314
End of year	$	74,297,951		$	51,762,637

Undistributed (distributions in excess of)
net investment income	$	7,099		$	(657	)

See accompanying notes, which are an integral part of the financial statements.

Financial highlights
Delaware Tax-Free Arizona Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.340		$11.760		$11.090		$10.930		$11.070


0.460		0.445		0.447		0.431		0.444
0.670		(0.394	)	0.668		0.158		(0.140	)
1.130		0.051		1.115		0.589		0.304


(0.457	)	(0.444	)	(0.445	)	(0.429	)	(0.444	)
(0.003	)	(0.027	)	—		—		—
(0.460	)	(0.471	)	(0.445	)	(0.429	)	(0.444	)

$12.010		$11.340		$11.760		$11.090		$10.930

10.15%		0.57%		10.27%		5.64%		2.78%


$99,953		$95,487		$108,214		$113,689		$122,027
0.84%		0.87%		0.86%		0.75%		0.75%

0.90%		0.93%		0.92%		0.91%		0.91%
3.94%		3.98%		3.94%		4.07%		4.02%

3.88%		3.92%		3.88%		3.91%		3.86%
34%		32%		15%		27%		29%

Financial highlights
Delaware Tax-Free Arizona Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.340		$11.760		$11.100		$10.940		$11.070


0.373		0.361		0.362		0.352		0.361
0.680		(0.394	)	0.658		0.158		(0.130	)
1.053		(0.033	)	1.020		0.510		0.231


(0.370	)	(0.360	)	(0.360	)	(0.350	)	(0.361	)
(0.003	)	(0.027	)	—		—		—
(0.373	)	(0.387	)	(0.360	)	(0.350	)	(0.361	)

$12.020		$11.340		$11.760		$11.100		$10.940

9.42%		(0.18%	)	9.35%		4.85%		2.10%


$224		$757		$2,917		$6,509		$9,620
1.59%		1.62%		1.61%		1.50%		1.50%

1.65%		1.68%		1.67%		1.66%		1.66%
3.19%		3.23%		3.19%		3.32%		3.27%

3.13%		3.17%		3.13%		3.16%		3.11%
34%		32%		15%		27%		29%

Financial highlights
Delaware Tax-Free Arizona Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.370		$11.790		$11.120		$10.960		$11.090


0.373		0.362		0.363		0.352		0.361
0.670		(0.394	)	0.668		0.158		(0.130	)
1.043		(0.032	)	1.031		0.510		0.231


(0.370	)	(0.361	)	(0.361	)	(0.350	)	(0.361	)
(0.003	)	(0.027	)	—		—		—
(0.373	)	(0.388	)	(0.361	)	(0.350	)	(0.361	)

$12.040		$11.370		$11.790		$11.120		$10.960

9.31%		(0.17%	)	9.43%		4.84%		2.09%


$7,108		$6,801		$7,995		$7,257		$8,806
1.59%		1.62%		1.61%		1.50%		1.50%

1.65%		1.68%		1.67%		1.66%		1.66%
3.19%		3.23%		3.19%		3.32%		3.27%

3.13%		3.17%		3.13%		3.16%		3.11%
34%		32%		15%		27%		29%

Financial highlights
Delaware Tax-Free California Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.170		$11.570		$10.620		$10.800		$11.010


0.484		0.476		0.497		0.448		0.449
1.039		(0.401	)	0.950		(0.182	)	(0.210	)
1.523		0.075		1.447		0.266		0.239


(0.483	)	(0.475	)	(0.497	)	(0.446	)	(0.449	)
(0.483	)	(0.475	)	(0.497	)	(0.446	)	(0.449	)

$12.210		$11.170		$11.570		$10.620		$10.800

13.90%		0.83%		13.92%		2.74%		2.21%


$97,821		$67,047		$72,902		$61,132		$67,174
0.82%		0.82%		0.82%		0.88%		0.88%

0.97%		0.98%		0.98%		0.97%		0.97%
4.10%		4.36%		4.48%		4.42%		4.11%

3.95%		4.20%		4.32%		4.33%		4.02%
32%		44%		35%		59%		34%

Financial highlights
Delaware Tax-Free California Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.210		$11.610		$10.670		$10.840		$11.060


0.398		0.395		0.416		0.373		0.367
1.049		(0.401	)	0.940		(0.172	)	(0.220	)
1.447		(0.006	)	1.356		0.201		0.147


(0.397	)	(0.394	)	(0.416	)	(0.371	)	(0.367	)
(0.397	)	(0.394	)	(0.416	)	(0.371	)	(0.367	)

$12.260		$11.210		$11.610		$10.670		$10.840

13.10%		0.09%		12.93%		2.07%		1.34%


$905		$1,307		$3,254		$4,938		$6,589
1.57%		1.57%		1.57%		1.63%		1.63%

1.72%		1.73%		1.73%		1.72%		1.72%
3.35%		3.61%		3.73%		3.67%		3.36%

3.20%		3.45%		3.57%		3.58%		3.27%
32%		44%		35%		59%		34%

Financial highlights
Delaware Tax-Free California Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

¹Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.180		$11.590		$10.640		$10.810		$11.030


0.397		0.394		0.415		0.373		0.367
1.049		(0.411	)	0.950		(0.172	)	(0.220	)
1.446		(0.017	)	1.365		0.201		0.147


(0.396	)	(0.393	)	(0.415	)	(0.371	)	(0.367	)
(0.396	)	(0.393	)	(0.415	)	(0.371	)	(0.367	)

$12.230		$11.180		$11.590		$10.640		$10.810

13.13%		(0.01%	)	13.06%		2.07%		1.35%


$18,830		$14,863		$15,526		$13,530		$14,991
1.57%		1.57%		1.57%		1.63%		1.63%

1.72%		1.73%		1.73%		1.72%		1.72%
3.35%		3.61%		3.73%		3.67%		3.36%

3.20%		3.45%		3.57%		3.58%		3.27%
32%		44%		35%		59%		34%

Financial highlights
Delaware Tax-Free Colorado Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

1 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.880		$11.260		$10.600		$10.640		$10.730


0.444		0.460		0.455		0.452		0.448
0.758		(0.397	)	0.661		(0.041	)	(0.089	)
1.202		0.063		1.116		0.411		0.359


(0.442	)	(0.443	)	(0.456	)	(0.451	)	(0.449	)
(0.442	)	(0.443	)	(0.456	)	(0.451	)	(0.449	)

$11.640		$10.880		$11.260		$10.600		$10.640

11.23%		0.71%		10.74%		4.11%		3.38%


$230,787		$216,151		$237,545		$226,393		$234,630
0.84%		0.88%		0.93%		0.90%		0.93%

0.93%		0.95%		0.95%		0.95%		0.95%
3.91%		4.30%		4.16%		4.43%		4.16%

3.82%		4.23%		4.14%		4.38%		4.14%
24%		26%		17%		27%		15%

Financial highlights
Delaware Tax-Free Colorado Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

See accompanying notes, which are an integral part of the financial statements.

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.890		$11.270		$10.610		$10.640		$10.730


0.360		0.380		0.373		0.375		0.367
0.758		(0.397	)	0.661		(0.031	)	(0.089	)
1.118		(0.017	)	1.034		0.344		0.278


(0.358	)	(0.363	)	(0.374	)	(0.374	)	(0.368	)
(0.358	)	(0.363	)	(0.374	)	(0.374	)	(0.368	)

$11.650		$10.890		$11.270		$10.610		$10.640

10.41%		(0.04%	)	9.91%		3.43%		2.60%


$173		$609		$1,429		$2,693		$3,961
1.59%		1.63%		1.68%		1.65%		1.68%

1.68%		1.70%		1.70%		1.70%		1.70%
3.16%		3.55%		3.41%		3.68%		3.41%

3.07%		3.48%		3.39%		3.63%		3.39%
24%		26%		17%		27%		15%

Financial highlights
Delaware Tax-Free Colorado Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

See accompanying notes, which are an integral part of the financial statements.

100

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.910		$11.290		$10.630		$10.660		$10.750


0.360		0.381		0.374		0.375		0.367
0.758		(0.397	)	0.661		(0.031	)	(0.089	)
1.118		(0.016	)	1.035		0.344		0.278


(0.358	)	(0.364	)	(0.375	)	(0.374	)	(0.368	)
(0.358	)	(0.364	)	(0.375	)	(0.374	)	(0.368	)

$11.670		$10.910		$11.290		$10.630		$10.660

10.39%		(0.03%)		9.90%		3.43%		2.60%


$14,282		$13,253		$15,155		$11,542		$9,836
1.59%		1.63%		1.68%		1.65%		1.68%

1.68%		1.70%		1.70%		1.70%		1.70%
3.16%		3.55%		3.41%		3.68%		3.41%

3.07%		3.48%		3.39%		3.63%		3.39%
24%		26%		17%		27%		15%

101

Financial highlights
Delaware Tax-Free Idaho Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

See accompanying notes, which are an integral part of the financial statements.

102

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.730		$12.120		$11.490		$11.260		$11.260


0.438		0.438		0.431		0.436		0.437
0.509		(0.385	)	0.633		0.228		—
0.947		0.053		1.064		0.664		0.437


(0.437	)	(0.436	)	(0.434	)	(0.434	)	(0.437	)
—		(0.007	)	—		—		—
(0.437	)	(0.443	)	(0.434	)	(0.434	)	(0.437	)

$12.240		$11.730		$12.120		$11.490		$11.260

8.21%		0.56%		9.44%		6.12%		3.93%


$119,025		$98,821		$104,287		$86,445		$72,237
0.88%		0.90%		0.94%		0.88%		0.85%

0.94%		0.96%		0.96%		0.96%		0.96%
3.65%		3.78%		3.66%		3.94%		3.87%

3.59%		3.72%		3.64%		3.86%		3.76%
17%		32%		7%		10%		11%

103

Financial highlights
Delaware Tax-Free Idaho Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

See accompanying notes, which are an integral part of the financial statements.

104

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.710		$12.100		$11.470		$11.240		$11.240


0.348		0.350		0.343		0.353		0.353
0.509		(0.385	)	0.633		0.228		—
0.857		(0.035	)	0.976		0.581		0.353


(0.347	)	(0.348	)	(0.346	)	(0.351	)	(0.353	)
—		(0.007	)	—		—		—
(0.347	)	(0.355	)	(0.346	)	(0.351	)	(0.353	)

$12.220		$11.710		$12.100		$11.470		$11.240

7.41%		(0.19%	)	8.64%		5.34%		3.17%


$582		$912		$2,450		$3,359		$5,123
1.63%		1.65%		1.69%		1.63%		1.60%

1.69%		1.71%		1.71%		1.71%		1.71%
2.90%		3.03%		2.91%		3.19%		3.12%

2.84%		2.97%		2.89%		3.11%		3.01%
17%		32%		7%		10%		11%

105

Financial highlights
Delaware Tax-Free Idaho Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

See accompanying notes, which are an integral part of the financial statements.

106

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$11.720		$12.110		$11.480		$11.250		$11.250


0.348		0.351		0.342		0.353		0.352
0.509		(0.385	)	0.633		0.228		—
0.857		(0.034	)	0.975		0.581		0.352


(0.347	)	(0.349	)	(0.345	)	(0.351	)	(0.352	)
—		(0.007	)	—		—		—
(0.347	)	(0.356	)	(0.345	)	(0.351	)	(0.352	)

$12.230		$11.720		$12.110		$11.480		$11.250

7.41%		(0.20%	)	8.63%		5.34%		3.16%


$40,738		$35,797		$35,591		$19,176		$11,490
1.63%		1.65%		1.69%		1.63%		1.60%

1.69%		1.71%		1.71%		1.71%		1.71%
2.90%		3.03%		2.91%		3.19%		3.12%

2.84%		2.97%		2.89%		3.11%		3.01%
17%		32%		7%		10%		11%

107

Financial highlights
Delaware Tax-Free New York Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

See accompanying notes, which are an integral part of the financial statements.

108

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.800		$11.150		$10.450		$10.300		$10.300


0.426		0.406		0.429		0.409		0.411
0.867		(0.351	)	0.700		0.148		—
1.293		0.055		1.129		0.557		0.411


(0.423	)	(0.405	)	(0.429	)	(0.407	)	(0.411	)
(0.423	)	(0.405	)	(0.429	)	(0.407	)	(0.411	)

$11.670		$10.800		$11.150		$10.450		$10.300

12.18%		0.63%		11.02%		5.65%		4.04%


$53,456		$37,051		$37,716		$22,780		$15,340
0.80%		0.80%		0.80%		0.85%		0.85%

1.01%		1.05%		1.07%		1.10%		1.09%
3.77%		3.82%		3.94%		4.10%		3.97%

3.56%		3.57%		3.67%		3.85%		3.73%
28%		54%		15%		36%		28%

109

Financial highlights
Delaware Tax-Free New York Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

See accompanying notes, which are an integral part of the financial statements.

110

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.780		$11.120		$10.420		$10.270		$10.280


0.341		0.326		0.347		0.334		0.333
0.867		(0.341	)	0.700		0.148		(0.010	)
1.208		(0.015	)	1.047		0.482		0.323


(0.338	)	(0.325	)	(0.347	)	(0.332	)	(0.333	)
(0.338	)	(0.325	)	(0.347	)	(0.332	)	(0.333	)

$11.650		$10.780		$11.120		$10.420		$10.270

11.36%		(0.04%	)	10.21%		4.88%		3.17%


$318		$477		$736		$1,018		$1,549
1.55%		1.55%		1.55%		1.60%		1.60%

1.76%		1.80%		1.82%		1.85%		1.84%
3.02%		3.07%		3.19%		3.35%		3.22%

2.81%		2.82%		2.92%		3.10%		2.98%
28%		54%		15%		36%		28%

111

Financial highlights
Delaware Tax-Free New York Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss)

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return¹

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

prior to fees waived

Ratio of net investment income to average net assets

prior to fees waived

Portfolio turnover

See accompanying notes, which are an integral part of the financial statements.

112

Year Ended
8/31/12		8/31/11		8/31/10		8/31/09		8/31/08
$10.780		$11.120		$10.420		$10.270		$10.280


0.340		0.326		0.346		0.333		0.333
0.857		(0.341	)	0.700		0.148		(0.010	)
1.197		(0.015	)	1.046		0.481		0.323


(0.337	)	(0.325	)	(0.346	)	(0.331	)	(0.333	)
(0.337	)	(0.325	)	(0.346	)	(0.331	)	(0.333	)

$11.640		$10.780		$11.120		$10.420		$10.270

11.26%		(0.04%	)	10.20%		4.88%		3.17%


$20,524		$14,235		$13,462		$5,651		$2,049
1.55%		1.55%		1.55%		1.60%		1.60%

1.76%		1.80%		1.82%		1.85%		1.84%
3.02%		3.07%		3.19%		3.35%		3.22%

2.81%		2.82%		2.92%		3.10%		2.98%
28%		54%		15%		36%		28%

113

Notes to financial statements
Delaware Investments^® state tax-free funds	August 31, 2012

Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund. Voyageur Mutual Funds II is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Colorado Fund. Voyageur Insured Funds is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Arizona Fund. Voyageur Mutual Funds, Voyageur Mutual Funds II, and Voyageur Insured Funds are each individually referred to as a Trust and collectively as the Trusts. These financial statements and related notes pertain to Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund (each, a Fund or, collectively, the Funds). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, and Class C shares. Class A shares are sold with a maximum front-end sales charge of 4.50%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months.

The investment objective of each Fund is to seek as high a level of current income exempt from federal income tax and from personal income tax in its respective state, as is consistent with preservation of capital.

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Funds.

Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Open-end investment companies are valued at their published net asset value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.

114

Other — Expenses directly attributable to the Funds are charged directly to the Funds. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities using the effective interest method. The Funds declare dividends daily from net investment income and pay the dividends monthly and declare and pay distributions from net realized gain on investments, if any, annually. The Funds may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

115

Notes to financial statements
Delaware Investments^® state tax-free funds

1. Significant Accounting Policies (continued)

Delaware	Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
$42	$30	$92	$56	$20

2. Investment Management, Administration Agreements and Other Transactions with Affiliates

	Delaware	Delaware	Delaware	Delaware	Delaware
	Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
	Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
On the first $500 million	0.500%	0.550%	0.550%	0.550%	0.550%
On the next $500 million	0.475%	0.500%	0.500%	0.500%	0.500%
On the next $1.5 billion	0.450%	0.450%	0.450%	0.450%	0.450%
In excess of $2.5 billion	0.425%	0.425%	0.425%	0.425%	0.425%

DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse the Funds to the extent necessary to prevent total annual fund operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding the following percentages of each Fund’s average daily net assets through December 28, 2012. These waivers and reimbursements may only be terminated by agreement of DMC and the Funds.

	Delaware	Delaware	Delaware	Delaware	Delaware
	Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
	Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
Operating expense
limitation as a percentage
of average daily net assets
(per annum)	0.59%	0.57%	0.59%	0.63%	0.55%

116

Delaware	Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
$5,186	$4,708	$11,697	$7,259	$3,089

DSC also provides dividend disbursing and transfer agency services. The Funds pay DSC a monthly asset-based fee for these services.

At August 31, 2012, each Fund had liabilities payable to affiliates as follows:

	Delaware			Delaware			Delaware			Delaware			Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free			Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund			New York Fund
Investment management
fees payable to DMC		$	46,493		$	34,716		$	102,953		$	70,872		$	24,246
Dividend disbursing,
transfer agent and fund
accounting oversight
fees and other expenses
payable to DSC			2,496			2,714			5,723			3,705			1,702
Distribution fees
payable to DDLP			27,224			36,873			60,947			59,308			28,361
Other expenses payable to
DMC and affiliates*			1,653			1,949			4,129			2,356			1,370

117

Notes to financial statements
Delaware Investments^® state tax-free funds

2.	Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)

Delaware	Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
$2,924	$2,609	$6,590	$4,074	$1,721

For the year ended August 31, 2012, DDLP earned commissions on sales of Class A shares for each Fund as follows:

Delaware	Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
$8,117	$11,226	$22,464	$55,839	$26,059

For the year ended August 31, 2012, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A, Class B and Class C shares, and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:

	Delaware			Delaware			Delaware			Delaware			Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free			Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund			New York Fund
Class A		$	0		$	2,717		$	0		$	31		$	0
Class B			53			26			0			0			0
Class C			0			25			0			3,304			240

Trustees’ fees include expenses accrued by the Funds for each Trustee’s retainer and meeting fees. Certain officers of DMC, DSC and DDLP are officers and/or Trustees of the Trusts. These officers and Trustees are paid no compensation by the Funds.

118

3. Investments

For the year ended August 31, 2012, the Funds made purchases and sales of investment securities other than short-term investments as follows:

	Delaware		Delaware		Delaware		Delaware		Delaware
	Tax-Free		Tax-Free		Tax-Free		Tax-Free		Tax-Free
	Arizona Fund		California Fund		Colorado Fund		Idaho Fund		New York Fund
Purchases	$	36,253,950	$	56,058,490	$	57,102,138	$	41,707,441	$	34,884,546
Sales		35,771,298		30,709,115		55,608,165		24,117,863		17,251,986

At August 31, 2012, the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes for each Fund were as follows:

	Delaware			Delaware			Delaware			Delaware		Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free		Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund		New York Fund
Cost of
investments	$	99,481,065		$	107,589,705		$	226,684,169		$	146,750,941	$	68,218,269
Aggregate
unrealized
appreciation	$	8,508,341		$	9,100,551		$	19,386,384		$	12,165,960	$	6,333,856
Aggregate
unrealized
(depreciation)		(16,087	)		(75,370	)		(531,630	)		—		(11,307	)
Net unrealized
appreciation	$	8,492,254		$	9,025,181		$	18,854,754		$	12,165,960	$	6,322,549

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1 –

inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, exchange-traded options contracts)

119

Notes to financial statements
Delaware Investments^® state tax-free funds

3. Investments (continued)

Level 2 –	other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

Level 3 –	inputs are significant unobservable inputs (including the Funds’ own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

Level 3 investments are valued using significant unobservable inputs, including related or comparable assets or liabilities, book values, and other relevant information for the investment to determine the fair value of the investment. The Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of August 31, 2012:

	Delaware Tax-Free Arizona Fund
			Level 2
Municipal Bonds			$	107,973,319

	Delaware Tax-Free California Fund
			Level 2
Municipal Bonds			$	115,614,886
Short-Term Investment				1,000,000
Total			$	116,614,886

	Delaware Tax-Free Colorado Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	244,862,423	$	244,862,423
Short-Term Investments		376,500		300,000		676,500
Total	$	376,500	$	245,162,423	$	245,538,923

120

	Delaware Tax-Free Idaho Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	157,247,594	$	157,247,594
Short-Term Investments		1,249,307		420,000		1,669,307
Total	$	1,249,307	$	157,667,594	$	158,916,901

	Delaware Tax-Free New York Fund
			Level 2
Municipal Bonds			$	73,040,818
Short-Term Investments				1,500,000
Total			$	74,540,818

4. Dividend and Distribution Information

	Delaware			Delaware			Delaware			Delaware		Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free		Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund		New York Fund
Year Ended 8/31/12
Tax-exempt income		$	4,071,429		$	3,785,457		$	9,184,480	$	5,085,903		$	2,214,770
Ordinary income			4			—			—		27			851
Long-term capital gains			27,070			—			—		—			—
Total		$	4,098,503		$	3,785,457		$	9,184,480	$	5,085,930		$	2,215,621

Year Ended 8/31/11
Tax-exempt income		$	4,112,014		$	3,499,954		$	9,447,544	$	4,647,399		$	1,826,536
Ordinary income			101,505			77,870			123,382		137,722			16,404
Long-term capital gains			273,094			—			—		24,209			—
Total		$	4,486,613		$	3,577,824		$	9,570,926	$	4,809,330		$	1,842,940

121

Notes to financial statements
Delaware Investments^® state tax-free funds

5. Components of Net Assets on a Tax Basis

As of August 31, 2012, the components of net assets on a tax basis were as follows:

	Delaware			Delaware			Delaware			Delaware			Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free			Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund			New York Fund
Shares of beneficial
interest	$	98,005,801		$	108,881,968		$	227,706,481		$	149,358,034		$	67,851,237
Undistributed tax-
exempt income		125,060			123,583			568,497			115,520			67,040
Undistributed
long-term
capital gains		762,026			—			—			—			117,066
Distributions
payable		(99,751	)		(104,820	)		(215,935	)		(132,164	)		(59,941	)
Qualified late year
long-term capital
losses deferred		—			—			—			(298,353	)		—
Capital loss
carryforwards		—			(369,988	)		(1,671,323	)		(863,783	)		—
Unrealized
appreciation
of investments		8,492,254			9,025,181			18,854,754			12,165,960			6,322,549
Net assets	$	107,285,390		$	117,555,924		$	245,242,474		$	160,345,214		$	74,297,951

The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses of wash sales, tax treatment of market discount and premium on debt instruments and distributions payable.

Qualified late year losses represent losses realized on investment transactions from November 1, 2011 through August 31, 2012 that, in accordance with federal income tax regulation, Delaware Tax-Free Idaho Fund has elected to defer and treat as having arisen in the following fiscal year.

122

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on debt instruments. Results of operations and net assets were not affected by these reclassifications. For the year ended August 31, 2012, the Funds recorded the following reclassifications:

	Delaware				Delaware				Delaware				Delaware				Delaware
	Tax-Free				Tax-Free				Tax-Free				Tax-Free				Tax-Free
	Arizona Fund				California Fund				Colorado Fund				Idaho Fund				New York Fund
Undistributed
(distributions in excess of)
net investment income		$	(25,305	)		$	(10,781	)		$	(21,646	)		$	(17,401	)		$	(10,585	)
Accumulated net realized
gain (loss)			25,305				10,781				21,646				17,401				10,585

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. In 2012, the Funds utilized capital loss carryforwards as follows:

Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free
California Fund	Colorado Fund	New York Fund
$139,322	$1,141,379	$28,006

Capital loss carryforwards remaining at August 31, 2012 will expire as follows:

	Delaware		Delaware			Delaware			Delaware		Delaware
Year of	Tax-Free		Tax-Free			Tax-Free			Tax-Free		Tax-Free
Expiration	Arizona Fund		California Fund			Colorado Fund			Idaho Fund		New York Fund
2014		$—		$	—		$	1,627,145		$—		$—
2016		—			—			44,178		—		—
2019		—			369,988			—		—		—
Total		$—		$	369,988		$	1,671,323		$—		$—

Losses incurred that will be carried forward under the Act are as follows:

	Loss carryforward character
	Short-term	Long-term
Delaware Tax-Free Idaho Fund	$863,783	$—

123

Notes to financial statements
Delaware Investments^® state tax-free funds

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware Tax-Free
	Arizona Fund				California Fund				Colorado Fund
	Year Ended				Year Ended				Year Ended
	8/31/12		8/31/11		8/31/12		8/31/11		8/31/12		8/31/11
Shares sold:
Class A	439,537		866,329		2,916,355		1,260,131		895,891		905,561
Class B	—		40		2,492		41		—		27
Class C	71,479		71,073		415,741		355,660		151,986		162,405

Shares issued upon reinvestment of dividends and distributions:
Class A	236,927		199,470		192,283		164,198		580,278		560,364
Class B	1,218		2,852		1,958		4,880		529		1,985
Class C	15,162		13,627		38,704		35,603		31,740		32,471
	764,323		1,153,391		3,567,533		1,820,513		1,660,424		1,662,813
Shares redeemed:
Class A	(779,149	)	(1,847,336	)	(1,100,987	)	(1,722,598	)	(1,507,938	)	(2,700,759	)
Class B	(49,279	)	(184,115	)	(47,147	)	(168,581	)	(41,596	)	(72,932	)
Class C	(94,840	)	(164,691	)	(243,641	)	(402,444	)	(174,363	)	(322,740	)
	(923,268	)	(2,196,142	)	(1,391,775	)	(2,293,623	)	(1,723,897	)	(3,096,431	)
Net increase
(decrease)	(158,945	)	(1,042,751	)	2,175,758		(473,110	)	(63,473	)	(1,433,618	)

	Delaware Tax-Free				Delaware Tax-Free
	Idaho Fund				New York Fund
	Year Ended				Year Ended
	8/31/12		8/31/11		8/31/12		8/31/11
Shares sold:
Class A	2,264,249		1,900,076		1,677,664		1,003,049
Class B	11		—		3,300		—
Class C	773,648		788,345		538,503		364,898

Shares issued upon reinvestment of dividends and distributions:
Class A	235,429		226,583		123,671		96,410
Class B	1,347		3,332		917		1,212
Class C	78,088		72,898		35,307		29,809
	3,352,772		2,991,234		2,379,362		1,495,378
Shares redeemed:
Class A	(1,203,335	)	(2,303,200	)	(651,615	)	(1,052,715	)
Class B	(31,696	)	(127,823	)	(21,163	)	(23,226	)
Class C	(576,195	)	(744,786	)	(132,201	)	(284,284	)
	(1,811,226	)	(3,175,809	)	(804,979	)	(1,360,225	)
Net increase (decrease)	1,541,546		(184,575	)	1,574,383		135,153

124

For the years ended August 31, 2012 and 2011, the following shares and values were converted from Class B to Class A shares. The amounts are included in Class B redemptions and Class A subscriptions in the tables above and the statements of changes in net assets.

	Year Ended				Year Ended
	8/31/12				8/31/11
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
Arizona Fund	9,844	9,861	$	115,358	114,565	114,667	$	1,289,672
Delaware Tax-Free
California Fund	25,311	25,461		290,956	111,060	111,540		1,237,217
Delaware Tax-Free
Colorado Fund	19,768	19,816		221,534	53,647	53,698		571,670
Delaware Tax-Free
Idaho Fund	11,453	11,457		135,471	92,109	91,931		1,068,723
Delaware Tax-Free
New York Fund	1,349	1,349		14,846	12,407	12,373		130,210

7. Line of Credit

8. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The values of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, as applicable, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse

125

Notes to financial statements
Delaware Investments^® state tax-free funds

8. Credit and Market Risk (continued)

impact on the value of insured bonds held in each Fund. At August 31, 2012, the percentages of each Fund’s net assets insured by bond insurers are listed below and these securities have been identified in the statements of net assets.

Delaware	Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
26.40%	8.54%	23.17%	20.27%	4.33%

Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract and are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s Investors Service, Standard & Poor’s, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.

126

securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. As of August 31, 2012, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

9. Contractual Obligations

10. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to August 31, 2012 that would require recognition or disclosure in the Funds’ financial statements.

127

Report of independent
registered public accounting firm

To the Board of Trustees of Voyageur Insured Funds, Voyageur Mutual Funds and Voyageur Mutual Funds II and the Shareholders of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund and Delaware Tax-Free Colorado Fund:

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Delaware Tax-Free Arizona Fund (constituting Voyageur Insured Funds), Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund (three of the series constituting Voyageur Mutual Funds) and Delaware Tax-Free Colorado Fund (constituting Voyageur Mutual Funds II) (hereafter collectively referred to as the “Funds”) at August 31, 2012, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2012 by correspondence with the custodian, provide a reasonable basis for our opinion. The financial highlights for each of the two years in the period ended August 31, 2009 were audited by other independent accountants whose report dated October 19, 2009 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 18, 2012

128

Other Fund information
(Unaudited)
Delaware Investments^® state tax-free funds

Board Consideration of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund Investment Advisory Agreements

At a meeting held on August 21–23, 2012 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreements for each of the Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Advisory Agreements with Delaware Management Company (“DMC”) included materials provided by DMC and its affiliates (“Delaware Investments”) concerning, among other things, the nature, extent and quality of services provided to the Funds, the costs of such services to the Funds, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided in May 2012 and included independent historical and comparative reports provided by Lipper, Inc., an independent statistical compilation organization (“Lipper”). The Lipper reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Lipper reports with independent legal counsel to the Independent Trustees. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; comparative client fee information; and any constraints or limitations on the availability of securities in certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, DMC’s ability to invest fully in accordance with Fund policies.

129

Other Fund information
(Unaudited)
Delaware Investments^® state tax-free funds

the Funds’ investment advisor and the emphasis placed on research in the investment process. The Board recognized DMC’s receipt of several industry awards, including being named best fund family for 2011 by Barron’s and best mixed asset small company by Lipper for the second year in a row. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to fund matters. The Board noted that in July 2011 Management implemented measures to reduce overall costs and improve transfer agent and shareholder servicing functions through outsourcing. The Board noted the benefits provided to Fund shareholders through each shareholder’s ability to exchange an investment in one Delaware Investments fund for the same class of shares in another Delaware Investments fund without a sales charge, to reinvest Fund dividends into additional shares of the same Fund or into additional shares of other Delaware Investments funds and the privilege to combine holdings in other Delaware Investments funds to obtain a reduced sales charge. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

Delaware Tax-Free Arizona Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional Arizona municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-year period was in the third quartile of its Performance Universe. The report further showed that the Fund’s total return for the three- and five-year periods was in the second quartile and the Fund’s total return for the ten-year period was in the first quartile. The Fund’s performance results were mixed but tended toward median, which was acceptable.

130

Delaware Tax-Free California Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional California municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-year period was in the second quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-, five- and ten-year periods was in the first quartile. The Board was satisfied with performance.

Delaware Tax-Free Colorado Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional Colorado municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-, five- and ten-year periods was in the first quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-year period was in the second quartile. The Board was satisfied with performance.

Delaware Tax-Free Idaho Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional other state municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one- and three-year periods was in the third quartile of its Performance Universe. The report further showed that the Fund’s total return for the five- and ten-year periods was in the first quartile. The Board determined that the Fund’s performance results were mixed. In evaluating the Fund’s performance, the Board considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking effective action to improve Fund performance and meet the Board’s performance objective.

Delaware Tax-Free New York Fund — The Performance Universe for the Fund consisted of the Fund and all retail and institutional New York municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-, five- and ten-year periods was in the first quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-year period was in the second quartile. The Board was satisfied with performance.

131

Other Fund information
(Unaudited)
Delaware Investments^® state tax-free funds

12b-1 service fees. The Board considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit each Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraphs summarize the expense results for the Funds and the Board’s view of such expenses.

Delaware Tax-Free Arizona Fund — The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second lowest expenses of its Expense Group and its total expenses were in the quartile with the second highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee, but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2012 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

Delaware Tax-Free California Fund — The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Lipper report.

Delaware Tax-Free Colorado Fund — The expense comparisons for the Fund showed that its actual management fee was in the quartile with the second highest expenses of its Expense Group and its total expenses were in the quartile with the highest expenses of its Expense Group. The Board noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered fee waivers in place through December 2012 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in expenses. Consequently, the Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

Delaware Tax-Free Idaho Fund — The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the highest expenses of its Expense Group. The Board noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating the total expenses, the Board considered waivers in place through December 2012 and various initiatives implemented by Management, such as the outsourcing of certain transfer agency services, creating an opportunity for a reduction in expenses. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

132

Delaware Tax-Free New York Fund — The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group as shown in the Lipper report.

133

Other Fund information
(Unaudited)
Delaware Investments^® state tax-free funds

Tax Information

For the fiscal year ended August 31, 2012, each Fund designates distributions paid during the year as follows:

	(A)		(B)		(C)
	Long-Term		Ordinary		Tax-Exempt
	Capital Gains		Income		Income			Total
	Distributions		Distributions		Distributions			Distributions
	(Tax Basis)		(Tax Basis)		(Tax Basis)			(Tax Basis)
Delaware Tax-Free Arizona Fund		0.66%		—		99.34	%		100.00	%
Delaware Tax-Free California Fund		—		—		100.00	%		100.00	%
Delaware Tax-Free Colorado Fund		—		—		100.00	%		100.00	%
Delaware Tax-Free Idaho Fund		—		—		100.00	%		100.00	%
Delaware Tax-Free New York Fund		—		0.04%		99.96	%		100.00	%

(A), (B) and (C) are based on a percentage of each Fund’s total distributions.

134

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Interested Trustees

Patrick P. Coyne1	Chairman, President,	Chairman and Trustee
2005 Market Street	Chief Executive Officer,	since August 16, 2006
Philadelphia, PA 19103	and Trustee
April 1963		President and
		Chief Executive Officer
		since August 1, 2006

¹Patrick P. Coyne is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.

136

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Patrick P. Coyne has served in	71	Director and Audit
various executive capacities		Committee Member
at different times at		Kaydon Corp.
Delaware Investments.²
		Board of Governors Member
		Investment Company
		Institute (ICI)

137

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees

Thomas L. Bennett	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
October 1947

John A. Fry	Trustee	Since January 2001
2005 Market Street
Philadelphia, PA 19103
May 1960











Anthony D. Knerr	Trustee	Since April 1990
2005 Market Street
Philadelphia, PA 19103
December 1938

Lucinda S. Landreth	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
June 1947

138

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Private Investor	71	Director
(March 2004–Present)		Bryn Mawr Bank Corp. (BMTC)
		(2007–2011)


President	71	Board of Governors Member —
Drexel University		NASDAQ OMX PHLX LLC
(August 2010–Present)
		Director and Audit
President		Committee Member
Franklin & Marshall College		Community Health Systems
(July 2002–July 2010)
		Director — Ecore
		International
		(2009–2010)

		Director — Allied
		Barton Securities Holdings
		(2005–2008)

Managing Director	71	None
Anthony Knerr & Associates
(Strategic Consulting)
(1990–Present)

Private Investor	71	None
(2004–Present)

139

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)

Frances A. Sevilla-Sacasa	Trustee	Since September 2011
2005 Market Street
Philadelphia, PA 19103
January 1956

140

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Chief Executive Officer —	71	Trust Manager — Camden
Banco Itaú Europa		Property Trust
International		(since August 2011)
(since April 2012)

Executive Advisor to Dean
(August 2011–March 2012)
and Interim Dean
(January 2011–July 2011) —
University of Miami School of
Business Administration

President — U.S. Trust,
Bank of America Private
Wealth Management
(Private Banking)
(July 2007–December 2008)

141

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)

Janet L. Yeomans	Trustee	Since April 1999
2005 Market Street
Philadelphia, PA 19103
July 1948







J. Richard Zecher	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
July 1940

142

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


Vice President and Treasurer	71	Director, Audit
(January 2006–July 2012)		Committee Member and
Vice President — Mergers & Acquisitions		Investment Committee
(January 2003–January 2006), and		Member
Vice President and Treasurer		Okabena Company
(July 1995–January 2003)
3M Corporation		Chair — 3M
		Investment Management
		Company
		(January 2005–July 2012)

Founder	71	Director and Compensation
Investor Analytics		Committee Member
(Risk Management)		Investor Analytics
(May 1999–Present)
		Director
Founder		Oxigene, Inc.
P/E Investments		(2003–2008)
(Hedge Fund)
(September 1996–Present)

143

Board of trustees/directors and officers addendum
Delaware Investments^® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Officers

David F. Connor	Vice President,	Vice President since
2005 Market Street	Deputy General	September 2000
Philadelphia, PA 19103	Counsel, and Secretary	and Secretary since
December 1963		October 2005


Daniel V. Geatens	Vice President	Treasurer
2005 Market Street	and Treasurer	since October 2007
Philadelphia, PA 19103
October 1972

David P. O’Connor	Executive Vice President,	Executive Vice President
2005 Market Street	General Counsel	since February 2012;
Philadelphia, PA 19103	and Chief Legal Officer	Senior Vice President
February 1966		October 2005–
		February 2012;
		General Counsel and
		Chief Legal Officer
		since October 2005

Richard Salus	Senior Vice President	Chief Financial Officer
2005 Market Street	and Chief Financial Officer	since November 2006
Philadelphia, PA 19103
October 1963

The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 523-1918.

144

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer


David F. Connor has served as	71	None³
Vice President and Deputy
General Counsel of
Delaware Investments
since 2000.

Daniel V. Geatens has served	71	None³
in various capacities at
different times at
Delaware Investments.

David P. O’Connor has served in	71	None³
various executive and legal
capacities at different times
at Delaware Investments.





Richard Salus has served in	71	None³
various executive capacities
at different times at
Delaware Investments.

145

About the organization

Board of trustees
Patrick P. Coyne Chairman, President, and Chief Executive Officer Delaware Investments® Family of Funds Philadelphia, PA Thomas L. Bennett Private Investor Rosemont, PA	John A. Fry President Drexel University Philadelphia, PA Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY	Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA Frances A. Sevilla-Sacasa Chief Executive Officer Banco Itaú Europa International Miami, FL	Janet L. Yeomans Former Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ

Affiliated officers
David F. Connor Vice President, Deputy General Counsel, and Secretary Delaware Investments Family of Funds Philadelphia, PA	Daniel V. Geatens Vice President and Treasurer Delaware Investments Family of Funds Philadelphia, PA	David P. O’Connor Executive Vice President, General Counsel, and Chief Legal Officer Delaware Investments Family of Funds Philadelphia, PA	Richard Salus Senior Vice President and Chief Financial Officer Delaware Investments Family of Funds Philadelphia, PA

This annual report is for the information of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at delawareinvestments.com.

Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.

146

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, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on the Delaware Investments Internet Web site at www.delawareinvestments.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this Web site within five business days of such amendment or waiver and will remain on the Web site for at least 12 months.

Item 3. Audit Committee Financial Expert

The registrant’s Board of Trustees/Directors has determined that certain members of the registrant’s Audit Committee are audit committee financial experts, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:

a. An understanding of generally accepted accounting principles and financial statements;

b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;

c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;

d. An understanding of internal controls and procedures for financial reporting; and

e. An understanding of audit committee functions.

An “audit committee financial expert” shall have acquired such attributes through:

a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;

b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;

c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or

d. Other relevant experience.

The registrant’s Board of Trustees/Directors has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees/Directors or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.

The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:

     Thomas L. Bennett¹     John A. Fry
     Frances A. Sevilla-Sacasa
     Janet L. Yeomans

Item 4. Principal Accountant Fees and Services

(a) Audit fees.

The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $69,600 for the fiscal year ended August 31, 2012.

____________________

¹ The instructions to Form N-CSR require disclosure on the relevant experience of persons who qualify as audit committee financial experts based on “other relevant experience.” The Board of Trustees/Directors has determined that Mr. Bennett qualifies as an audit committee financial expert by virtue of: his education and Chartered Financial Analyst designation; his experience as a credit analyst, portfolio manager and the manager of other credit analysts and portfolio managers; and his prior service on the audit committees of public companies.

(b) Audit-related fees.

The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2012.

The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $565,000 for the registrant’s fiscal year ended August 31, 2012. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year end audit procedures; group reporting and subsidiary statutory audits.

The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $593,000 for the registrant’s fiscal year ended August 31, 2011. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year end audit procedures; reporting up and subsidiary statutory audits.

The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $13,150 for the fiscal year ended August 31, 2012. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.

The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $0 for the fiscal year ended August 31, 2011.

The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $10,000 for the registrant’s fiscal year ended August 31, 2011. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: state and local tax review.

(d) All other fees.

The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2012.

The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2012. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.

The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $25,000 for the registrant’s fiscal year ended August 31, 2011. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These other services were as follows: attest examination of management's assertion to the controls in place at the transfer agent to be in compliance with Rule 17ad-13(a)(3) of the Securities Exchange Act of 1934.

(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Delaware Investments Family of Funds.

Service	Range of Fees
Audit Services
Statutory audits or financial audits for new Funds	up to $25,000 per Fund
Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters	up to $10,000 per Fund
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”)	up to $25,000 in the aggregate
Audit-Related Services
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”)	up to $25,000 in the aggregate
Tax Services
U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.)	up to $25,000 in the aggregate
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.)	up to $5,000 per Fund
Review of federal, state, local and international income, franchise and other tax returns	up to $5,000 per Fund

Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.

Service	Range of Fees
Non-Audit Services
Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters	up to $10,000 in the aggregate

The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.

(f) Not applicable.

(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $10,092,966 and $0 for the registrant’s fiscal years ended August 31, 2012 and August 31, 2011, respectively.

(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.

(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.

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

Not applicable.

Item 11. Controls and Procedures

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s fourth fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a)		(1) Code of Ethics

		Not applicable.

		(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.

		(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.

		Not applicable.

(b)		Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.

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.

Name of Registrant: VOYAGEUR MUTUAL FUNDS

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	November 2, 2012

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.

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	November 2, 2012

/s/ RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	November 2, 2012