Page 4

EXECUTIVE SUMMARY

Based upon our review as directed by Bond Accountability Commission 2 (“BAC”), we found that, overall, the Issue 14 Bond and Note offerings of the Cleveland Metropolitan School District (“CMSD” or the “District”) were well-conducted and that CMSD and the taxpayers received the benefit of interest costs at prevailing market levels or, in the case of the 2002 Bonds, somewhat better. In addition, transaction costs were reasonable. We are able to report to BAC and CMSD’s taxpayers that CMSD is conducting its securities offerings in a reasonable manner meeting CMSD’s responsibilities to the taxpayers. Within that overall positive context, we are making a number of recommendations for CMSD’s consideration, in consultation with its Financial Advisors and Bond Counsel, in order to determine whether CMSD may benefit from additional enhancements relating to its securities offerings and market activities. BAC assigned specific tasks to the AGFS Team. Those respective tasks are to review and discuss the following: •

History, advantages and disadvantages of CMSD’s strategy in execution of bond and note sales authorized by Issue 14, including its practices for selecting Financial Advisors, Bond Counsel and underwriters

History, advantages and disadvantages of CMSD’s timing and comparative results of sales

Recommendations, if needed, for improvements

BAC2 Recomendations Final 04062010