Comprehensive Annual Financial Report - Cleveland - Cleveland

Comprehensive Annual Financial Report - Cleveland - Cleveland

Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2014 1111 Superior Avenue E, Suite 1800 Cleveland, OH 44114 216.838.0000 ClevelandMe...

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Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2014

1111 Superior Avenue E, Suite 1800 Cleveland, OH 44114 216.838.0000 ClevelandMetroSchools.org

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Comprehensive Annual Financial Report of the

Cleveland Municipal School District For the

FISCAL YEAR ENDED JUNE 30, 2014 Prepared by

Finance Department John W. Scanlan Chief Financial and Administrative Officer Dennis Kubick Deputy Chief Financial Officer/Controller Michael Bowen Director of Accounting

1111 Superior Avenue E. * Cleveland, Ohio 44114

CLEVELAND MUNICIPAL SCHOOL DISTRICT Board of Education

Ericka L. Abrams

Denise W. Link Board Chair

Louise P. Dempsey Board Vice Chair

Anne E. Bingham

Robert M. Heard, Sr.

Shaletha T. Mitchell

Ronald M. Berkman Ex Officio Member

FinancialReport-Board14-15.indd 1

Stephanie Morales

Alex Johnson, Ph.D. Ex Officio Member

Willetta A. Milam

Lisa Thomas, Ph.D.

Eric S. Gordon Chief Executive Officer

John W. Scanlan Chief Financial & Administrative Officer

12/17/14 2:55 PM

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Introductory Section

Introductory Section

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Cleveland Municipal School District Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2014 TABLE OF CONTENTS I. INTRODUCTORY SECTION Table of Contents ................................................................................................................................. T1 Letter of Transmittal ............................................................................................................................. T3 Board Members .................................................................................................................................. T20 Senior Appointed Officials ................................................................................................................. T21 Organizational Chart .......................................................................................................................... T22 ASBO Certificate of Excellence ......................................................................................................... T23 GFOA Certificate of Achievement ..................................................................................................... T24 II. FINANCIAL SECTION Independent Auditor’s Report ................................................................................................................ 1 Management’s Discussion and Analysis ................................................................................................ 4 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ........................................................................................................ 17 Statement of Activities ............................................................................................................ 18 Fund Financial Statements: Balance Sheet – Governmental Funds ..................................................................................... 19 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities.................................................................................................... 20 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ......................................................................................................... 21 Reconciliation of the Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................ 22 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual – General Fund .................................................. 23 Statement of Fund Net Position - Proprietary Fund ................................................................ 24 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Fund ............................................................................................................... 25 Statement of Cash Flows – Proprietary Fund .......................................................................... 26 Statement of Fiduciary Assets and Liabilities – Agency Funds .............................................. 27 Notes to the Basic Financial Statements ........................................................................................ 28 Combining Statements and Individual Fund Schedules: Combining Statements – Nonmajor Governmental Funds: Fund Descriptions.................................................................................................................... 62 Combining Balance Sheet – Nonmajor Governmental Funds................................................. 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ........................................................................................ 65 Combining Balance Sheet – Nonmajor Special Revenue Funds ............................................. 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds .................................................................................... 70 Combining Balance Sheet – Nonmajor Capital Projects Funds ............................................. 74 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Capital Projects Funds ..................................................................................... 75 Combining Statements – Internal Service Funds: Fund Descriptions.................................................................................................................... 76 Combining Statement of Fund Net Position – Internal Service Funds.................................... 77 Combining Statement of Revenues, Expenses and Changes in Fund Assets – Internal Service Funds ...................................................................................................... 78 Combining Statement of Cash Flows – Internal Service Funds .............................................. 79 - T1 -

Combining Statements – Fiduciary Funds: Fund Descriptions.................................................................................................................... 80 Combining Statement of Changes in Assets and Liabilities – All Agency Funds ............................................................................................................. 81 Individual Fund Schedules of Revenues, Expenditures/Expenses and Changes in Fund Balance/Fund Equity - Budget (Non-GAAP Basis) and Actual: Debt Service Fund ...................................................................................................... 83 Classroom Facilities Fund .......................................................................................... 84 Educational Special Trust Fund ................................................................................. 85 Classroom Facilities Maintenance Fund .................................................................... 86 Other Local Funds ...................................................................................................... 87 Auxiliary Services (NPSS) Fund ................................................................................ 88 Straight A Fund .......................................................................................................... 89 Miscellaneous State Grants Fund ............................................................................... 90 Other State Funds ....................................................................................................... 91 Food Service Fund ..................................................................................................... 92 Race to the Top Fund ................................................................................................. 93 Title VI-B Special Education Fund ............................................................................ 94 Vocational Education Fund ........................................................................................ 95 Title I .......................................................................................................................... 96 Improving Teacher Quality Title II-A Fund............................................................... 97 Miscellaneous Federal Grants Fund ........................................................................... 98 Other Federal Funds ................................................................................................... 99 Permanent Improvement Fund ................................................................................. 100 Liability Self-Insurance Fund................................................................................... 101 Employee Benefits Self-Insurance Fund .................................................................. 102 III. STATISTICAL SECTION Statistical Section ................................................................................................................................. S1 Net Position by Component – Last Ten Fiscal Years ........................................................................... S2 Changes in Net Position of Governmental Activities – Last Ten Fiscal Years .................................... S4 Fund Balances, Governmental Funds – Last Ten Fiscal Years ............................................................ S8 Governmental Funds Revenues – Last Ten Fiscal Years ................................................................... S10 Governmental Funds Expenditures and Debt Service Ratio – Last Ten Fiscal Years ....................... S12 Other Financing Sources and Uses and Net Change in Fund Balances, Governmental Funds – Last Ten Fiscal Years................................................................................................................... S14 Assessed and Estimated Actual Value of Taxable Property – Last Ten Collection Years ................. S16 Ad Valorem Property Tax Rates – All Direct and Overlapping Governments – Last Ten Collection Years ........................................................................................................... S18 Principal Property Tax Payers – 2012 and 2003 ................................................................................. S20 Property Tax Levies and Collections – Ad Valorem Real and Tangible Personal Property Taxes – Last Ten Fiscal Years................................................................................................................... S21 Ratio of Bonded Debt to Personal Income and Debt per Capita – Last Ten Fiscal Years................................................................................................................... S22 Legal Debt Margin Information – Last Ten Fiscal Years................................................................... S24 Direct and Overlapping Debt Governmental Activities Debt As of June 30, 2013 ...................................................................................................................... S26 Demographic and Economic Statistics – Last Ten Fiscal Years ........................................................ S27 Principal Employers – Current Year and Ten Years Ago .................................................................. S28 Full-Time Equivalent District Employees by Type – Last Ten Fiscal Years ..................................... S29 Operating Statistics – Last Ten Fiscal Years ...................................................................................... S30 Teacher Base Salaries – Last Ten Fiscal Years .................................................................................. S32 School Building Information - Last Ten Fiscal Years ........................................................................ S33

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John W. Scanlan

Chief Financial and Administrative Officer

Chief Executive Officer Eric S. Gordon Board of Education Denise W. Link

December 31, 2014 Members of the Board of Education and the Citizens of Cleveland, Ohio

Board Chair

Louise P. Dempsey

Vice Chair

Ericka L. Abrams Anne E. Bingham Robert M. Heard, Sr. Willetta A. Milam Shaletha T. Mitchell Stephanie Morales Lisa Thomas, Ph.D.

Ex Officio Members Ronald M. Berkman, Ph.D. Alex Johnson, Ph.D.

We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) of the Cleveland Municipal School District (the “School District”) for the fiscal year ended June 30, 2014. This CAFR includes an opinion from the State Auditor and conforms to generally accepted accounting principles as applicable to governmental activities. Responsibility for the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the School District. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the School District. This report will provide the taxpayers of the School District with comprehensive financial data in a format which will enable them to gain an understanding of the School District’s financial affairs. Copies will be made available to taxpayers, financial rating services and other interested parties. Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative introduction, overview and analysis of the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The School District’s MD&A can be found immediately following the independent accountants’ report. The School District The Board of Education and Administration The Board of Education of the School District (the “Board”) is a political and corporate body charged with the responsibility of managing and controlling the affairs of the School District, and is governed by the general laws of the State of Ohio (the “Ohio Revised Code”). The Board is comprised of nine members who are appointed by the Mayor of the City of Cleveland.

1111 Superior Ave E • Cleveland, OH 44114 • Office: 216.838.0000 • Fax: 216.436.5134 ClevelandMetroSchools.org

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The Chief Executive Officer of the School District has the responsibility for directing and assigning teachers and other employees, assigning the pupils to the proper schools, grades and performing such other duties as determined by the appointed Board. In May of 2011, the Board with the concurrence of the Mayor appointed Eric Gordon as the School District’s Chief Executive Officer with a one-year contract effective July 1, 2011 through June 30, 2012. Mr. Gordon’s contract was renewed and is scheduled to expire on June 30, 2015. Prior to being named the Chief Executive Officer, Mr. Gordon served as the School District’s Chief Academic Officer since 2007. The Chief Financial Officer/Treasurer is the chief fiscal officer of the Board and the School District. Under the current administrative structure, the Chief Financial Officer/Treasurer reports to the Chief Executive Officer. On November 15, 2011 the School District formally announced the appointment of John W. Scanlan as the Chief Financial and Administrative Officer effective January 1, 2012. Mr. Scanlan was previously the Deputy Superintendent of Administration in New York’s Rochester City School District and the Chief Operating Officer of the Oklahoma City Public School District. The School District and its Facilities Of the School District's area of approximately 82 square miles, 81.44 square miles (or 99.32 percent) are in the City of Cleveland. The balance of the School District's area is located in and serves the entire area of the Villages of Newburgh Heights, Linndale and Bratenahl and a small portion of the City of Garfield Heights. The School District is located entirely within Cuyahoga County, and, with the exception of a portion of the City of Cleveland located in the Shaker Heights City School District, its boundaries are generally coterminous with the corporate boundaries of the City of Cleveland. The purpose and responsibility of the School District is to provide an efficient educational system for the children enrolled in the public schools, whereby each child has access to programs and services that are appropriate to his or her needs. In addition to regular educational programs, the School District offers comprehensive programs in the areas of vocational education, special education and bilingual education. Through its specialty school programs, the School District offers advanced educational programs in such areas as fine arts, computer science, healthcare professions, law and municipal professions, business, and technical trades. In fiscal year 2014, the School District enrolled 37,967 students (compared to 38,717 the previous year) in 73 K-8 schools, and 23 senior high schools. In addition, classes were provided in four residential school programs. The School District also operated a variety of specialized educational facilities (consisting of gardens, athletic fields, a sheltered workshop and a greenhouse), eight administration facilities (including a central kitchen and two leased sites) and two transportation depots. An enrollment projection from Future Think has the School District’s enrollment declining to 33,425 in fiscal year 2018 and 30,691 in fiscal year 2023. The School District has completed its thirteenth year of a massive school facility construction/renovation project, which is described in more detail in the Management’s Discussion and Analysis section. The project commenced in 2001 to address the condition and age of the existing classroom facilities (which ranged from 25 to 113 years old). Charter/Community Schools Beginning in fiscal year 1999, State of Ohio legislation allowed for the creation of charter/community schools. By law the School District receives State Foundation Aid for students attending charter/community schools that are residents of the School District on a per pupil basis. That aid, which includes an imputed local match, is paid out to the charter/community schools for their operations on a one-for-one basis. The number of students attending charter/community schools has grown in the past ten years to 19,393 for fiscal 2014, resulting in the payment from the School District of state aid of $141.1 million.

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Employee Relations As of June 30, 2014 the School District had 5,302 full and part-time employees (compared to 5,785 the previous year). In the fiscal year ended June 30, 2014, the School District paid $356.2 million in salaries and wages and $138.2 million for fringe benefits such as employer retirement contributions, health care, life insurance, and certain other benefits. The School Districts certificated administrators and supervisors (such as principals, assistant principals and many central office staff) are not members of any bargaining unit but are represented by the Cleveland Council Administrators and supervisors; however, many of these individuals are employees at an at-will basis. Teachers and educational specialists, including aides, are represented by the Cleveland Teachers Union ("CTU"). In May 2013, the School District entered into a contract with CTU for a three-year period ending June 30, 2016. This contract provides for 4% wage increases effective for the first year of the contract, a $1,500 stipend to be paid in the second year of the contract to members who have transitioned to the new differentiated compensation system and a 1% increase in the third year of the contract. CTU members will also pay 10% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage. Classified employees (secretarial-clerical, custodial, maintenance, transportation and cafeteria staff) of the School District are represented for collective bargaining purposes by different unions, including: 









the International Brotherhood of Teamsters Local 407 (school bus drivers and bus attendants), with a three year agreement ending on June 30, 2016, with a 3% compensation increase in the first year of the contract, a stipend of $450, $650, or $950 to be paid in the second year of the contract since sufficient progress was made toward a differentiated compensation system and a 1% increase in the third year of the contract. Members will pay 7.9% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage; the City, County, and State Truck Drivers Union Local 244 (truck drivers), with a three year agreement ending on June 30, 2016, with a 3% compensation increase in the first year of the contract, a stipend of $450, $650, or $950 to be paid in the second year of the contract since sufficient progress was made toward a differentiated compensation system and a 1% increase in the third year of the contract. Members will pay 10% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage; the National Conference of Fireman and Oilers Local 860 (assistant custodians, laborers, and mechanics), with a three year agreement ending on June 30, 2016, with a 3% base wage increase in year one with a July 1, 2013 effective date; $800 stipend year two; and 1% base wage increase year three. Members will pay 10% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage; the International Brotherhood of Teamsters Local 436 (security officers), with a contract that expires June 30, 2016 with a 3% compensation increase in the first year of the contract, a stipend of $450, $650, $950 to be paid in the second year of the contract since sufficient progress was made toward a differentiated compensation system and a 1% increase in the third year of the contract. Members will pay 7.9% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage for 2013-2014; 8.8% of the monthly healthcare premium costs capped at $75 for individual and $170 for family coverage for 2014-2015; and 10% of the monthly healthcare premium costs capped at $75 for individual and $170 for family coverage for 2015-2016; the Service Employees International Union Local 1199 (clerical, food service and cleaning staff), with a contract that expires June 30, 2016 with a 3% base wage increase in year one with July 1, 2013 effective date; $500 stipend year two; and 1% base wage increase year three. Members will pay 10% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage and a $75 working spouse surcharge for those employees whose annualized income is greater than

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$23,000. For those employees whose annualized wages are $23,000 or less, employee contribution shall be 6.5% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage. If at any time the employee’s annualized wages exceed $23,000, the employee’s contribution shall be increased to 10% effective the first month after the annualized wages exceed; the Cleveland Building Trades Council (trades people) and the carpenters union, with a three year agreement ending June 30, 2016, with a 3% compensation increase in the first year of the contract, a stipend of $450, $650 or $950 to be paid in the second year of the contract since sufficient progress was made toward a differentiated compensation system and a 1% increase in the third year of the contract. Members will pay 8.5% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage; and the National Conference of Fireman and Oilers Local 777 (custodians), with a three year agreement ending on June 30, 2016, with a 3% compensation increase in the first year of the contract, a stipend of $800 to be paid in the second year of the contract since sufficient progress was made toward a differentiated compensation system and a 1% increase in the third year of the contract. Members will pay 10% of monthly healthcare premium costs capped at $75 for individual and $170 for family coverage.

The Reporting Entity The School District has reviewed its reporting entity definition in order to insure conformance with the Governmental Accounting Standards Board Statement No. 14, "The Financial Reporting Entity”, and Statement No. 39, “Determining Whether Certain Organizations are Component Units.” The basic financial statements include all organizations, activities and functions for which the School District is financially accountable. Excluded from the reporting entity because they are fiscally independent of the School District are the City of Cleveland and the Cleveland Public Library. The City of Cleveland and the Cleveland Public Library are related organizations whose relationships to the School District are described in Note 19 to the basic financial statements. The School District also participates in the Ohio Schools Council, which is a jointly governed organization. In 2001 the School District created the Bond Accountability Commission (“BAC"), which is also a jointly governed organization. These relationships are described in Note 20 to the basic financial statements. The School District is an independent municipal school district and is not a component unit of another government. A complete discussion of the School District's reporting entity is provided in Note 1 to the basic financial statements.

Economic Condition and Outlook The School District’s primary sources of revenues are from the State of Ohio through the State Foundation program and through the levying of property taxes on real property located within the School District. These two sources combined represent approximately 96 percent of the School District’s fiscal year 2014 budget basis General Fund operating revenues. The following discussion provides additional information pertaining to these revenue sources. Taxes Property taxes are levied and assessed on a calendar year basis. Second half distributions generally occur in a new fiscal year. Property taxes include amounts levied against all real and public utility located in the School District. Real property taxes are levied after April 1 on the assessed value listed as of the prior January 1, the lien date. Public utility property taxes attached as a lien on December 31 of the prior year were levied April 1 and are collected with real property taxes. Assessed values for real property taxes are established by State law at 35 percent of appraised market value. All property is required to be revalued every six years.

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A table showing the assessed valuation of property in the School District subject to ad valorem taxes by the Board for the most recent ten years is presented in the statistical section. Fiscal year 2015 property taxes are currently estimated by the Cuyahoga County Auditor’s Office based on a current collection rate of 82.6%, up from 76.1%. The forecast through 2018 assumes a current collection rate of 82.6%. The Ohio Revised Code and Ohio Administrative Code mandate Cuyahoga County to conduct a reappraisal every six years, an update every three years and annual valuation of improvements based upon building permits received from each city annually. The next update will be in 2015, with the next re-appraisal scheduled for the year 2018. State law grants tax relief to property owners (property tax rollbacks) in the form of a 10% reduction in real property tax bills. In addition, a 2.5% rollback is granted for owner occupied homesteads (total of 12.5%). The State reimburses the School District for the loss of real property taxes as a result of the rollback provision. HB 66 eliminated the 10% rollback on commercial property; hence the School District will no longer receive a State reimbursement for those dollars, as it will receive those payments directly from commercial property owners. The new law states that the ten percent and two and one-half percent rollbacks will no longer apply to new levies that are enacted after August 31, 2013. House Bill 66 phases out the tax on the tangible personal property of general businesses, telephone and telecommunications, and railroads. The tax on general business and railroad property was eliminated in 2009, and the tax on telephone and telecommunications property was eliminated in 2011. The tax is phased out by reducing the assessment rate on the property each year. HB 66 makes provision to replace revenue lost due to the phase out of the tangible personal property tax. Businesses are now subject to a commercial activity tax (CAT) that will provide some replacement income to school districts for the lost tangible property revenues. Ohio law grants tax credits to offset increases in taxes resulting from increases in the true value of real property. Legislation implementing a 1980 constitutional amendment classifies real property between (1) residential and agricultural and (2) all other real property, and provides for tax reduction factors to be separately computed for and applied to each class. These credits apply to certain voted levies on real property, and do not apply to unvoted tax levies or voted tax levies to pay debt service on general obligation debt. Additionally, in 1976 the General Assembly passed House Bill 920. This law provides that real property owners receive tax credits equal to any tax increase caused by an increase in value of all real property in taxing districts as a result of reappraisal, update or readjustment. This does not apply to inside non-voted millage, tangible property or new construction. In effect, H.B. 920 removes inflationary revenue growth from the applicable real property by requiring an adjustment to the voted millage rate, thereby resulting in a lower effective millage rate. Property tax levies and collections for the last ten years are shown in comparative format in the statistical section. School Foundation The State’s School Foundation Program is another major source of revenue for the School District’s General Fund. The State assists public school districts under a statutory program, which includes direct payments to districts based upon a statutory formula. Such payments are made through the School Foundation Program established by the Ohio Revised Code. School Foundation Program funds distributed to a School District are required to be used for current operating expenses, unless specifically allocated by the State for some other purpose. Basic eligibility for School Foundation Program payments is based on a School District’s compliance with State-mandated minimum standards.

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The State Budget Act repeals the existing funding system for city (and municipal), exempted village and local school districts enacted as part of the previous State biennial budget act. The previous system of funding utilized a temporary formula for the 2011-2013 biennium (the Temporary Formula), allocating funding to school districts based on a wealth-adjusted portion of their State education aid (State Education Aid) for Fiscal Year 2011. During the 2009-2011 biennium, the funding system was known as the “Evidence Based Model” and calculated an “adequacy amount” of State Education Aid as the sum of a number of delineated factors calculated based on a school district’s number of “organizational units.” The Evidence Based Model replaced the formula in effect for the 2007-2009 biennium known as the “Foundation Program,” which utilized a per pupil “formula amount” to compute base-cost funding and some categorical funding. Under the new funding formula in the State Budget Act, the State Department of Education (the Department) will compute and pay to each city (and municipal), exempted village and local school district, an amount of State Education Aid based on a base amount of spending per pupil multiplied by (i) the school district’s “average daily membership” (ADM), generally a full-time equivalent number of students to be certified by each school district to the Department, and (ii) an index (the State Share Index) dependent on factors such as a school district’s tax valuation percentage of the base amount for school districts with less tax valuation or lower median income residents. For Fiscal Year 2015, the base amount is $5,800 and for Fiscal Year 2016 the base amount is currently unknown. Starting July 1, 2014, school districts will be required to report student enrollment (rather than average daily membership) data to the State as of the last day of October, March and June of each year. In addition to the funding amount of State Education Aid described above (known as an “Opportunity Grant”), under the new core funding formula school districts may also receive, as applicable, State Education Aid in the form of (i) targeted assistance based on tax valuation and income factors, (ii) targeted assistance based on a percentage of a school district’s agricultural property, (iii) a specific amount based on six categories of disabilities for special education and related services, (iv) kindergarten through third grade literacy funds, (v) economically disadvantage funds, (vi) a specific amount for each of three English proficiency categories, (vii) career-technical categories, and (x) career-technical education associated services funds. As with Opportunity Grant funds, special education, kindergarten through third grade literacy, limited English proficiency and career-technical funds are subject to the State Share Index. Certain other categories of funding, including pupil transportation funding, are funded in whole or in part by the State outside of the core funding formula. Notwithstanding the amount of State Education Aid a school district is scheduled to receive under the new funding formula, funding increases for core funding and pupil transportation funding are capped at not more than 6.25% of the previous years’ State aid for Fiscal Year 2014 and 10.5% of the previous years’ State aid for Fiscal Year 2015. All school districts are guaranteed to receive at least the amount of State aid in Fiscal Years 2014 and 2015 as they received in Fiscal Year 2013. There can be no assurance concerning future funding levels for or the details of State funding for school districts. As has been the case in the past, funding can also been subject to adjustment during a biennium. As indicated above, the General Assembly has the power to amend the system of State school funding. The School District cannot predict whether, when or in what form any future system of State school funding will be enacted into law. Local Economy The City of Cleveland is located on the southern shores of Lake Erie, and is the county seat of Cuyahoga County. The City is included in the Cleveland-Elyria-Mentor, OH Metropolitan Statistical Area (MSA), comprised of Cuyahoga, Lake, Lorain, Geauga, and Medina counties. This MSA is the 26th largest of 366 Metropolitan Areas in the United States, and the largest Metropolitan Area in the State of Ohio. Founded in 1796, Cleveland quickly established economic strengths in heavy industry, including oil, iron and steel, and combined with its favorable location on major shipping channels soon emerged as the dominant

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manufacturing and business center of Northeast Ohio. While the City’s economy has shifted more toward health care and financial services, its manufacturing base has assumed a smaller, yet still vital role. Competitive pressures in manufacturing have limited job creation, but the competitive position of Clevelandbased industrial companies has improved. Cleveland’s economic condition draws strength and stability from its evolving role as a focal point of a growing, changing and substantial regional economy. The City is located at the center of one of the nation’s heaviest population concentrations. The Cleveland metropolitan area is a significant local market, housing 2.1 million people. Cleveland also provides superior links to the global markets. The Cleveland-Cuyahoga Port Authority handles the largest amount of overseas cargo on Lake Erie and includes a Foreign Trade Zone. The City is also well-served with extensive highways, and the Cleveland Hopkins International Airport which is serviced by all major airlines. The re-emergence of downtown Cleveland as a vibrant center for national and regional entertainment and major cultural activities signals a turning point in the City’s overall fortunes and is paving the way for further economic expansion that will be significantly more entrepreneurial in scope. The following projects currently underway will provide the momentum necessary to continue rebuilding the City’s economic base: 

The Health Tech Corridor continues to grow and attract businesses. In the past 3 years, the City assisted with over 334,000 square feet of newly constructed or renovated pace which have reached 86% occupancy since the first building opened in 2011. Over 40 acres of land have been assessed to determine if contamination exists and 28 acres of land have been remediated and received their No Further Action Letter and are being marketed with great interest. The opportunities for business attraction to Cleveland by partnering with the area’s institutions are immense and have already resulted in over 1,200 new jobs since the Corridor’s inception in 2008.



In the City of Cleveland, major projects around the health care sector includes: o The $41 million University Hospitals Center for Emergency Medicine at Case Medical Center; o The Cleveland Clinic’s $112 million Glickman Tower; o The $260 million University Hospitals Seidman Cancer Center; o The ongoing $500 plus million VA Medical Center expansion; and o The $504 million Cleveland Clinic Miller Family Pavilion.



Financing has been finalized for the second phase of the Flats East Bank project and construction broke ground in the first quarter of 2014. The $133 million project will include a 243-unit residential building, a riverfront boardwalk, and passible additional office tower and variety of retailers. Restaurants include BBR, The Beer Market Craft Beer Cellars, The Big Bang, Flip Side, FWD:, Panini’s Bar and Grill and Toby Keith’s I love this Bar & Grill. Recently joining the lineup is Crop Kitchen & Vine and Cropicana, developed by the chef and owner of Ohio City’s successful Crop Bistro & Bar. Construction on the residential building began in January 2014 and the phase two estimated completion date is spring 2015.



The $250 million Ameritrust Project commenced construction in 2013. In just over 18 months, the $80 million eight-story new Cuyahoga County Headquarters opened; transformed a Marcel Breuer designed tower into the Metropolitan hotel and high-end apartments; carved out spaces for a theater, events and a Mediterranean restaurant; built a rooftop bar on the old Swetland Building; and turned the rotunda’s basement into a nightspot called the Vaults. The Heinen’s Fine Food grocery store located in the Cleveland Trust Rotunda will open early 2015. The apartments in the Breuer tower are more than 90 percent leased, while the smaller units in the 1010 building are 75 percent leased.

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The $120 million renovation of FirstEnergy Stadium. The City worked with the Cleveland Browns to bring needed improvements to the stadium in 2014, including state-of-the-art scoreboards in both end zones and increase seating capacity in the lower level.



The Cleveland Indians began a multimillion dollar renovation of Progressive Field in October 2014. The team stated that this is the first and largest of several years’ worth of renovations the team is considering. The renovations, which will stretch from center field to right field, could be finished by opening day of 2015.



The City is expected to select a development team amongst four respondents to their Request for Proposals for private lake development. The City’s Group Plan provided direction for the development of more than 28 acres of property along the Lake Erie shoreline, with the goal of infusing a sustainable and complementary assortment of entertainment, dining, hospitality, office and public waterfront access.



The $465 million Cleveland Convention Center opened in June 2013 and includes 225,000 gross square feet of Class A exhibit space, 35 meeting rooms and a 32,000 square foot ballroom. The adjacent Global Center for Health Innovation opened in September 2014. This 235,000 square foot, four-floor facility is designed to serve practitioners, manufacturers and consumers in the health care field. These two new facilities are on pace to accommodate 200 events in 2014, attracting 182,182 attendees and generating 94,052 room nights, according to the facilities manager, SMG.



The Convention Center Hotel, Hilton Cleveland Downtown, will connect the new Cleveland Convention Center, the Global Center for Health Innovation, and our downtown mall in a way that has never been done before. With this hotel, the Northeast Ohio region will be in a stronger position than ever to compete on a national and international stage. With the new Hilton Cleveland Downtown in place, the Cleveland Convention Center attendee experience will be world-class. Situated on the site of the former Cuyahoga County Administration Building, the $272 million project is expected to employ 2,800 workers during the construction and 450 full-time jobs at the hotel. The new Hilton Cleveland Downtown is scheduled to open by 2016.



In April 2013, the Drury Hotel Co.’s $4.5 million offer on the former Cleveland Municipal School District headquarters was accepted by the School District, adding another hotel to growing Downtown Cleveland. The historical building, located at 1380 E. 6th Street, will be renovated to become a Drury Plaza with about 180 rooms, and is estimated to open in summer 2016.



In June 2013, the $12 million Aloft Hotel opened on the East Bank of the Flats. This 150 room hotel is located in the heart of the business and entertainment district and offers easy access to major sports stadiums and casinos, the Rock & Roll Hall of Fame Museum and the convention center.



Westin Cleveland Downtown, a roughly $70 million 484 room project opened in May 2014. The Westin is located in the form Crowne Plaza hotel located across the street from the Convention Center. The Urban Farmer Steakhouse is located on the first floor of the hotel.



Le Meridien is the next hotel brand expanding into the Downtown Cleveland market. This marks the sixth hotel project now under development in Downtown Cleveland, totaling nearly 1,800 rooms to be added to the market in the next 36 months. Being developed in the John Harkness Brown Building, the hotel will house 206 hotel rooms, an indoor pool, a bar and restaurant, meeting areas, first floor retail space, and an attached parking garage. And international brand, the Downtown Cleveland Le Meridien location will be one of only 17 locations in the United States and expected to open in 2016.

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The Kimpton Hotel and apartments located in the Schofield Building in the heart of downtown Cleveland is slated to open in mid-2015. The $45 million project will feature a chef-driven destination restaurant and more than 7,400 square feet of meeting and event space, including a ballroom and outdoor roof terrace. The hotel will be part of a mixed use development that will also include 25 luxury apartments on the buildings top four floors and ground floor retail.



A $500 million architectural reboot has reinvigorated Cleveland State University’s 85-acre campus while embracing and elevating the surrounding cityscape. The centerpiece of the dramatic transformation is our magnificent Student Center, designed by renowned architect Charles Gwathmey. Other striking additions include LEED-certified new buildings such as Julka Hall, the Recreation Center and the Euclid Commons residence hall. The makeover is poised to continue with the 2015 opening of the Center for Innovation in Health Professions. This revitalization is having a dynamic ripple effect and sparking downtown projects such as Campus Village, the largest residential development in Cleveland in 30 years.



The City continues to see investment in its manufacturing sector. ArcelorMittal’s Cleveland Plant opened its long idled West Bank facility and added 150 employees to now exceed 1,850 workers at the plant. They are now the most efficient steel mill in the US with the most tons of steel per hour of any US facility. The City’s land development project called the Cuyahoga Valley Industrial Center (“CVIC”), adjacent to Steel Warehouse, Heidtman Steel and ArcelorMittal, has created a 60-acre buildable site for redevelopment and is now finishing the roads and utility work to the site. The project has rail and highway access and is located directly beside Interstate 77. The project is expected to attract over 700,000 square feet of industrial buildings and is currently listed with a local brokerage firm for sale.



The $600 million Horseshoe Casino Cleveland is being developed in two phases by Rock Ohio Caesars LLC, a joint venture of Rock Gaming LLC and Caesars Entertainment Corporation and will carry the Caesars’ Horseshoe brand used in other cities. Phase I of the project opened on May 14, 2012 in the renovated historic downtown Higbee building, and employs nearly 1,600 workers. Phase I development cost approximately $350 million. The developer has purchased the property for Phase II, adjacent to the Phase I site, but construction has not started and an expected completion date has not been announced. The casino attracted 3.3 million patrons and generated more than $243 million in revenue in 2013.



In August 2014, the city hosted the Gay Games, welcoming about 9,000 participants and 20,000 spectators for a week-long celebration of sports, human rights and inclusion. Preliminary estimates show a $40 million economic impact for the city.



The City’s revitalization efforts will be on full display in 2016, when an estimated 40,000 to 50,000 people flock to Northeast Ohio for the Republican National Convention. According to the Cleveland 2016 Host Committee, the Republican National Convention requires 16,000 hotel rooms be available for the convention in the host city. Though the convention typically last only one week, former host cities report that impact is felt throughout the month leading up the convention. Attendees stay an average of four to seven nights, and additional personnel stay anywhere from two to four weeks. Cleveland hopes the national spotlight cast on the city during June 2016 will showcase recent developments, possibly spurring future interest and investment in the area.

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Major Initiatives The Cleveland Plan (H.B. 525) On July 7, 2012, Governor John Kasich signed House Bill 525, also known as “The Cleveland Plan” (the Plan), into law. Cleveland Mayor Frank Jackson, Governor Kasich, the General Assembly, the Cleveland Teacher’s Union and the Cleveland business community collaborated to create a plan for the School District to improve standards, reward, retain, and recruit high-quality educators, and increase school autonomy and accountability. The goal of the Plan is to ensure that every child in the School District attends a high-quality school and that every neighborhood has a multitude of great schools from which families can choose. To reach this goal, the School District will need to transition from a traditional, single-source school district to a new system of district and charter schools that are held to the highest standards and work in partnership to create dramatic student achievement gains for every child. The plan is built upon growing the number of excellent schools in Cleveland, regardless of provider, and giving these schools autonomy over staff and budgets in exchange for high accountability for performance. It aims to create an environment that empowers and values principals and teachers as professionals and makes certain that District students are held to the highest expectations. The Plan is grounded in an emerging national approach known as the “portfolio strategy,” which is showing promising results in cities such as Baltimore, Denver, and New York. The principal focus of this work is to significantly increase the number of high-performing schools while reducing and eventually eliminating lowperforming schools. To do this, the School District will employ four distinct strategies. (1) Promote, expand, and replicate existing high-performing district and charter schools. Great schools, measured by a consistent standard of quality will have full autonomy over school budgets, staff selection and assignment, academic and student support programs, school calendar and school schedules in exchange for high accountability standards and access to financial and other resources. (2) Start new schools. The School District will endeavor to attract the best national education models, invent schools that are unique to the City and encourage local community partners and teachers within the School District to co-create new and innovative school models. (3) Refocus and strengthen mid-performing schools. For those schools that meet minimum state standards and have some critical academic and social conditions in place, the School District will employ precise, customized and differentiated interventions and investments and grant some levels of autonomy. (4) Repurpose and address low-performing schools. The lowest performing schools will be targeted for immediate and dramatic action, including closure and reassignment of student to better schools, closure and start-up of a new school, phase-in of a new program and phase-out of the old program, or turning the school over to a capable charter operator. In addition, organizational roles and relationships will change in three fundamental ways. First, the primary roles of central office will be to oversee the portfolio of schools to ensure continuous improvement, provide system coordination for essential functions (enrollment, data systems, etc.) and provide some targeted services directly to schools. Secondly, schools will be given varying levels of autonomy based on their level of performance and will be accountable for delivering an excellent education. All schools will have to abide by certain state and federal requirements, such as state testing and serving students with disabilities and English language learners, among others. Finally, the School District will shift to a weighted per-pupil funding system for all schools and transfer a majority of spending control to schools based on the number and needs of the students they enroll. This will include the transfer of some locally generated tax revenues to highperforming charter schools that are sponsored by or have agreements with the School District. Beyond the investments in this new, performance-based system of schools, the School District will invest in several fundamental building blocks upon which this plan must be built high quality preschool education, college and workforce readiness, year-round calendar, talent recruitment and capacity building, academic technology enhancement, and support for high-quality charter schools.

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The Cleveland Transformation Alliance, a public-private partnership with representatives from the School District, the charter sector and the community, will be charged with ensuring the growth of the portfolio of high-performing district and charter schools within the School District. Currently, there is no “one” organization that is responsible for the quality of all public school students in Cleveland. Approximately 70 percent of public school students attend district schools under the governance of the Cleveland Board of Education. Another 30 percent attend charter schools, each with its own governing board and authorizer. Currently, there are ten authorizers in the county that sponsor schools in Cleveland. This dispersed authority can be a strength. It ensures that no single entity holds a monopoly over school, encourage entrepreneurship, fosters the development of new models and can limit bureaucracy. But it also has limitations. Most notably, the public, and our parents in particular, lack consistent, useful information about the quality of schools in Cleveland. The Cleveland Transformation Alliance has been created to address this challenge. Finally, the Plan includes a new type of property tax levy that may be pursued by municipal school districts. If approved by the electors, the board of education can levy a tax for the current expenses of the school district and also for current expenses of partnering community schools, which are, generally speaking, those community schools located within the territory of the school district and that are either (i) sponsored by the school district, or (ii) have entered into an agreement with the school district “whereby the district and the community school endorse each other’s programs”. The School District successfully placed such a levy on the November 6, 2012 ballot, specifically, a 15-mill current expense levy with 14 mills being allocated to the current expenses of the School District and one mill being allocated to the current expenses of partnering community schools (through distributions by the School District to such community schools upon receipt of tax proceeds and related revenue). As result of the passage of this levy, the CEO released a draft implementation strategy for the Cleveland Plan seeking comment from community members and business leaders. The implementation strategy identified the following goals as the basis for measuring educational progress under the Plan: 

Increase the number of students enrolled in high-performing schools: At the end of six years, triple the number of Cleveland students enrolled in high-performing district and charter schools from the approximately 11,000 students currently enrolled in these schools to approximately 33,000 by 20182019.



Eliminate failing schools: At the end of six years, (by 2018-2019) eliminate the School District’s 63 failing schools



Increase the graduation rate and graduate more students ready for college and careers: The current graduation rate, as computed by the state using a four-year cohort graduation rate computation is 59.1%. The goal is to cut in half the gap between this rate and the state’s 90% graduation rate goal, thereby increasing the graduation rate to 71% by 2017-2018.



Raise student achievement while closing achievement gaps: While all subjects and all grades will be targeted, the primary focus will be to raise student achievement rates in reading and math by 20172018, with a goal toward cutting in half the gap that exists between current achievement levels and 100% proficiency, and to do so by 2017-2018. This also includes the identification of specific achievement goals.



Increase college enrollment: The goal is to increase college enrollment rates from the current baseline of 63.1% of graduates to 68.6% by 2017-2018. (This goal exceeds the 2011 national college going rate of 68.2%)



Significantly improve the conditions for learning: Currently, 58.5% of the School District students rate their school experience as “adequate” or better. The goal is to significantly improve students’

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school experience – cutting the proportion of students who report that the conditions in their building as needing improvement in half, thereby increasing student satisfaction to 79.5%, by 2017-2018 Significant Accomplishments 

During the 2013-2014 school year, the School District achieved the following benchmarks on the state report card: o At the beginning of the year, 37% of the School District third graders were on-track to meet state requirements. By the end of the year, that was increased to 86%. o The School District improved on 15 state achievement indicators while losing ground on seven. o Our Performance Index score was one-tenth of a point shy of a District record high set in the 2006 school year. o Cleveland’s success in closing the gap in reading, math and graduation rates regardless of race, gender or income increased by 20.1% o The School District’s lowest performing students maintained a grade of C, meaning students earned a year’s worth of growth for a year’s worth of instruction, while our three-year average score for students with disabilities improved from and F to a C. o Also, the School District achieved a 4-year graduation rate of 64.3%, up from 59.3% the previous year. The continued growth is true for every single student subgroup. This graduation rate is a District record high



Expanding out portfolio of quality school choices: Fulfilling its promise in the Cleveland Plan, the School District continues to expand its portfolio of quality schools to fit the needs and interests of every student. In August 2014, the School District added four new high schools: o E3agle Academy o PACT – A Problem-based Academy of Critical Thinking that was developed with a $3 million grant from the Carnegie Corporation is housed on the John F. Kennedy High School campus. Students will have flexible schedules that blend classroom and online instruction, so they can master skills at their own pace o Cleveland High School for the Digital Arts – Where experts in the field help integrate digital arts into other high school subjects o Bard High School Early College Cleveland – Students can earn a high school diploma and a two-year associate degree in four years.



Holding ourselves and each other accountable for results: The School District is committed to holding itself accountable for setting higher standards for students by measuring their learning and implementing supports needed to ensure student success. Every person in the organization thinks of themselves as an educator. We are committed to being visibly engaged every day and to holding ourselves accountable for results while supporting one another in our common goal to raise student achievement.



Ensuring college & workforce readiness: Research shows that by 2018, more than 60 percent of new jobs will require some kind of post-secondary education – a technical certificate, two-year or fouryear degree. Common Core State Standards are now used in all District schools, as well as Naviance curriculum in grades 9-12, to help students connect academic achievement to their career and college goals. The School District is committed to expanding and strengthening college and career planning resources, increasing college enrollment rates, decreasing college remediation rates and increasing the number of high school student enrolled in: Advanced Placement, Post-Secondary Options, Dual Credit Programs and Apprenticeships and Internship Programs.

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Giving staff and communities’ greater autonomy to make decisions about their schools: The Cleveland Plan calls for transferring authority from the central office to individual schools, where the people know best where students need assistance and can make the best possible decisions to help them succeed. By granting greater autonomy and implementing student-based budgeting this year, school leaders, their staffs and communities have increased freedom to make decisions about their school calendar, academic programs and supports, the people they hire and the money they spend. Today, the School District provides money to schools based not on a one-size-fits-all-schools formula, but on enrollment numbers and on the individual needs of students, giving increased opportunities for school staff and families to direct resources and supports where they can have the greatest impact on student achievement.



Implementing student-based budgeting: Student-based budgeting was a critical first step in decentralizing school funding and ensuring that the money follows the child. With greater autonomy and decision-making at the building level, student-based budgeting ensures that: o Funding follows the child on a per-student basis to the public school he or she attends o Per-student funding varies according to the child’s individual needs and other relevant circumstances o Funding is distributed according to student need to ensure equity o Funding arrives at the school as real dollars, not as teaching positions or staffing norms, so funds can be spent flexibly to achieve results Today, resources are more transparent than ever as the School District maintains it Cleveland Plan promise to increase equity for students and provide a financial incentive for schools to improve practices to attract and retain families



Improving customer service: With support from the Cleveland Clinic, a valued community partner, the School District has implemented a plan to improve customer service and create more familyfriendly schools and offices District-wide. The School District staff is trained in strategies to improve communication and the customer experience. Staying true to one of our goals, the School District is using surveys and metrics to increase two-way communication and measure customer satisfaction.



Increasing family and community engagement: The Cleveland Plan requires all parents and caregivers have face-to-face contact at a parent-teacher conference, open house or other event by December of the school year. In an effort to increase family and community engagement, the School District is committed to making parent-teacher conferences more meaningful, convenient and inviting for families by extending hours and holding them at times when parents can pick up their child’s report card.



Expanding early childhood options across the city: Fulfilling the promise to expand free, high quality Pre-K options across the city, the School District joined partners this school year to launch PRE4CLE, a citywide effort to make high-quality preschool available to 3 and 4 year olds. The Cleveland Early Childhood Compact has increased the number of providers who, like the School District, meet state quality standards so every parent in Cleveland has an opportunity to choose a quality preschools for their child.



Investing in our children and our communities: The School District targeted 23 low-performing schools over the last two years for intensive intervention. Investment School strategy, an aggressive freeform measure that is showing promising results, is based on each school’s particular needs and on community feedback about the changes they want to see in their schools. Thus far, reforms produced more positive school climates, increased family and community engagement and higher scores on assessments. We are steadfast in our commitment to the citizens of Cleveland to demonstrate measureable academic progress and reduce the number of low-performing schools by 50 percent.

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Partnering with community agencies: Community partners have responded to the CEO’s call for support. Today, our partners play a stronger role than ever in our common goal to raise student achievement. United Way has linked the School District schools with a growing list of lead agencies that pair with schools to provide “wraparound” services tailored to each school’s individual needs. At Franklin D. Roosevelt PreK-8 school in the Glenville neighborhood, the Boys and Girls Clubs of Greater Cleveland organization is on site to provide academic and extracurricular programs before, during and after school. With help from the Cleveland Food Bank, students have three daily meals, as well as the academic and social support they need. The MetroHealth partnership added health services this year at 11 schools, expanding medical service to help reduce chronic absenteeism and improve school performance. School District families now have easy access to resources to manage their children’s urgent care, immunizations, sports physicals and lab tests. Students don’t miss time at school and parents don’t miss time at work.



Giving Student greater ‘say’ in their schools, their district, their future: Student Advisory Committee was established last year to meet a requirement of the Cleveland Plan to involve students in academic reform. Students representing a cross-section of grades, achievement levels and personalities from 26 high schools now serve as delegates to citywide education summits where they work with school principals to improve conditions for learning at their schools. Students who serve on the Advisory Committee analyze survey data, dialogue with students from other schools and work together to draft plans aimed at improving attendance, safety, morale, academic achievement, discipline, respect and overall school climate and culture at their schools.



Parents and guardians play a critical role in school attendance. The School District, working with community partners, will continue the Target 11 Attendance Initiative. Target 11 enables school officials and community partners to more closely monitor each child’s attendance at school while educating families on the importance of good attendance records. Each day a child is absent from school has a negative impact on their attendance percentage, which in turn affects overall academic progress. Target 11 is designed to educate parents on the tracking procedures used for attendance. The objective is for students not to miss more than 11 days of school, thus meeting a 93 percent attendance goal.



Participation in sports competition not only improves a student’s physical health; it also plays a key role in overall youth development, including improved academic performance, higher self-esteem, fewer behavioral problems and increased opportunities for substantial college scholarships. Last year, CMSD earned numerous regional and state championship appearances and more than $3 million in athletic scholarships for our student athletes who will go on to play for Division I sport teams. CMSD has a rich legacy of championships. Among them: o o

o 

Glenville became the first Cleveland public high school to advance to a state football championship since 2009. They returned to the championship in 2013. The East Tech High School boys basketball team advanced this year to state’s Final Four championship, galvanizing a championship legacy founded in East Tech state championships in 1958, 1959 and 1972. The Glenville Tarblooders boys track team won its 16th state track and field championship this year.

CMSD Parent University provides informative and skill-building classes for parents and caregivers of students attending Cleveland’s public schools. Free classes in locations throughout the city include computer basics, reading at home, advocating for your child, college readiness, financial literacy and

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others, designed to help families increase their involvement in school and support student learning at home. 

District high schools use web-based software known as Family Connection/Naviance to help parents and their children navigate high school courses, colleges and career plans. School counselors, principals and staff will provide parents with up-to-date information specific to their child’s high school. Family connection allows parents and their children to get involved in the planning and advising process, to research college and career options and to prepare for the future. Also, it enables the School District to share information with families about upcoming meetings and events, local scholarship opportunities and other resources for college and career information.



The School District’s Project ACT ensures homeless students have access to the same free education all residential students receive within the School District. Barriers that may prevent homeless students from attending school are eliminated through the work of Project ACT, which partners with District departments and community resources. Using a comprehensive holistic approach to deliver direct instructional and support services necessary for the homeless child’s transition into school, Project ACT facilitators work to ensure each child’s success and ongoing participation in the educational system. Support services include meeting the physical, social and emotional needs of each homeless child and empowering parents to support their children’s educational endeavors. The School District works closely with Project ACT and community support organizations to ensure school information is available to students and families who are living in doubled-up situations and shelters.



Since its inception, the Closing the Achievement Gap (CTAG) initiative has succeeded in increasing the number of participants promoted to 10th grade. The CTAG initiative provides targeted intervention for ninth-grade minority males who run the risk of dropping out of school, as statistics show that these students are more likely to drop out if they repeat ninth-grade. The goal is to partner these young men with Linkage Coordinators in schools who act as mentors, life coaches and advocates. They motivate the students and address social and emotional issues so young men will succeed academically and graduate from high school. Success relies upon collaboration among parents, school administrators, teachers and the community. Students develop effective study habits and communication skills, learn proper etiquette and the importance of smart decision-making and become better prepared to navigate high school. Exposure trips have significant impact on those who seldom leave their neighborhoods. Students travel to cultural and higher-educational institutions where each young man can see his potential, change his outlook and dream a brighter future.



The construction of Almira, Miles, Orchard and Paul L. Dunbar was completed during the year. The construction began and continued on Cleveland School of the Arts, John Marshall, and Max Hayes. The School District plans on opening these three schools in the beginning of the 2015-16 school year.

Long-Term Financial Planning The Board of Education has assigned responsibility for annual and long-term financial planning to the Chief Financial Officer/Treasurer. The policies require that the first objective of financial management planning is to provide for the education of the School District’s children. We are expected to use the best available techniques for budget development and management, as well as to engage in strategic, long-term financial planning which attempts to forecast the need for future educational and capital expenditures. The School District has implemented a major, multiple segment Master Facility Plan that will require over $1.0 billion to repair, renovate and rebuild its school facilities. The revised Master Facility Plan calls for the construction/replacement or renovation of the existing facilities that have been built prior to 2002. Segment one of the construction projects began in 2002. Through June 30, 2014, the School District has constructed 30 new schools and renovated 8 existing facilities.

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Relevant Financial Policies At the beginning of each fiscal year, the School District adopts either a temporary or permanent appropriation measure for that fiscal year. If a temporary appropriation measure is first adopted, the permanent appropriation measure must be adopted upon receipt from the County Auditor of an amended certificate of estimated resources based on final assessed values and tax rates, which is usually within the first three months of the fiscal year. Annual appropriations may not exceed the County Budget Commission's official estimate of resources. The County Auditor must certify that the School District's appropriation measures, including any supplements or amendments, do not exceed the amount set forth in the latest of those official estimates. All disbursements and transfers of cash between funds require appropriation authority. Budgets are controlled at the fund level. All purchase order requests must be approved by the appropriate levels of authority and certified by the Chief Financial Officer/Treasurer; necessary funds are then encumbered and purchase orders are released to vendors. The accounting system used by the School District provides interim financial reports which detail year-to-date expenditures and encumbrances versus the original appropriation plus any additional appropriations made to date. Each administrator and school principal is furnished monthly reports showing the status of the budget accounts for which they are responsible. In addition, an on-line inquiry system is available for each cost center site. The School District pursues an aggressive cash management program by expediting the receipt of revenues and prudently investing and depositing available cash in obligations collateralized by instruments issued by the United States Government, governmental agencies, corporations or the State of Ohio or insured by the Federal Deposit Insurance Corporation (FDIC) and/or the Securities Investor Protection Corporation (SIPC). Protection of the School District’s deposits is provided by the federal deposit insurance corporation and/or by qualified securities pledged by the institution holding the assets. By law, financial intuitions may establish a collateral pool to cover all public deposits. The market value of the pooled collateral must equal at least 105 percent of public funds deposited. Collateral is held by trustees including the Federal Reserve Bank and other designated third-party trustees of the financial institutions. Internal Controls Management of the School District is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the School District are protected from loss, theft or misuse. The internal control structure ensures that accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state, and county financial assistance, the School District is also responsible for maintaining a rigorous internal control structure that ensures full compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management, external auditors and the internal audit staff of the School District. The School District is required to undergo an annual audit in conformity with the provisions of the Single Audit Act and U.S. Office of Management and Budget Circular A-133, Audits of State and Local Governments and Non-profit Organizations. The information related to the Single Audit, including the schedule of federal awards expenditures, findings and recommendations, and auditor’s reports on the internal control structure and compliance with applicable laws and regulations are included in a separate report.

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Cleveland Municipal School District Board Members Appointed by Mayor of City of Cleveland

Began Service as a Board Member

Present Term Expires June 30

Denise W. Link, Chair

2007

2015

Louise P. Dempsey, Vice Chair

1998

2015

Ericka L. Abrams (a)

2014

2015

Anne E. Bingham (a)

2014

2017

Robert M. Heard, Sr.

2004

2017

Willetta A. Milam

2003

2017

Shaletha Mitchell

2011

2015

Stephanie Morales

2013

2015

Dr. Lisa Thomas

2011

2017

Name

Dr. Ronald M. Berkman, ex-officio Dr. Alex Johnson, ex-officio ( a ) Appointed May 12, 2014

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Cleveland Municipal School District Senior Appointed Officials

Eric Gordon

Chief Executive Officer

Michelle N. Pierre-Farid John Scanlan Christine Fowler-Mack Patrick Zohn Lora Cover Roderick Houpe Kevin Khayat

Chief Academic Officer Chief Financial and Administrative Officer Chief Portfolio Officer Chief Operating Officer Chief Talent Officer Chief Information Officer Chief Strategy Implementation

Diana Ehlert Nicholas Jackson Gary Sautter Karen Thompson Dennis Kubick TBD Wayne Belock Joseph Podach Dr. Russell Brown Lester Fultz Jessica Baldwin

Deputy Chief, Academic Resources Deputy Chief, Business Operations Deputy Chief, Capitol Programs Deputy Chief, Curriculum and Instruction Deputy Chief, Financial Officer/Controller Deputy Chief, Leadership and Growth Deputy Chief, Legal Counsel Deputy Chief, IT/Procurement Deputy Chief, Organizational Accountability Deputy Chief, Safety and Security Deputy Chief, Intervention Services

George Anagnostou Tracy Hill Regis Balaban Larry Johnston Blessing Nwaozuzu Christine Costello Victoria Brian Joe Micheller Stephanie Klupinski

Executive Director, Budgets Executive Director, Family and Community Engagement Executive Director, Food Services Executive Director, Internal Auditor Executive Director, Student Services Executive Director, Talent Operations Executive Director, Legal Services Executive Director, New School Development Executive Director, Charter Oversight, Review & Partnership

Lisa Farmer Cole Luther Johnson Andrew Koonce Donald Jolly Warren Morgan Trent Mosley Valentina Moxon Dr. Roseann Canfora Kevin Burtzlaff

Academic Superintendent, Portfolio Schools Academic Superintendent, Refocus Schools Academic Superintendent, Achievement Schools Academic Superintendent, STEAM Schools Academic Superintendent, Investment Schools II Academic Superintendent, Investment Schools I Academic Superintendent, Best Practices/Academics & Culture District Communications Officer Board Attorney and Liasion

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  Association of School Business Officials International 

The Certificate of Excellence in Financial Reporting Award is presented to

Cleveland Municipal School District For Its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30, 2013 The CAFR has been reviewed and met or exceeded ASBO International’s Certificate of Excellence standards

Terrie S. Simmons, RSBA, CSBO President

John D. Musso, CAE, RSBA Executive Director

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Certificate of Achievement for Excellence in Financial Reporting  

Presented to

 

Cleveland Municipal School District Ohio      

 

For its Comprehensive Annual

 

 

 

June 30, 2013    

 

Executive Director/CEO

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Financial Section Financial Section

FinancialReport2013-14-Tabs.indd 2

12/23/13 3:17 PM

INDEPENDENT AUDITOR’S REPORT

Cleveland Municipal School District Cuyahoga County 1111 Superior Ave. E, Suite 1800 Cleveland, Ohio 44114

To the Board of Education: Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Cleveland Municipal School District, Cuyahoga County, Ohio (the District), as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for preparing and fairly presenting these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes designing, implementing, and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to opine on these financial statements based on our audit. We audited in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement. An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the District’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the District’s internal control. Accordingly, we express no opinion. An audit also includes evaluating the appropriateness of management’s accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation. We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinions.

Lausche Building, 615 Superior Ave., NW, Twelfth Floor, Cleveland, Ohio 44113‐1801 Phone: 216‐787‐3665 or 800‐626‐2297 Fax: 216‐787‐3361 www.ohioauditor.gov

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Cleveland Municipal School District Cuyahoga County Independent Auditor’s Report Page 2

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Cleveland Municipal School District, Cuyahoga County, Ohio, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General Fund thereof for the year then ended in accordance with the accounting principles generally accepted in the United States of America.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require this presentation to include Management’s discussion and analysis, listed in the table of contents, to supplement the basic financial statements. Although this information is not part of the basic financial statements, the Governmental Accounting Standards Board considers it essential for placing the basic financial statements in an appropriate operational, economic, or historical context. We applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, consisting of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, to the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not opine or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to opine or provide any other assurance. Supplementary and Other Information Our audit was conducted to opine on the District’s basic financial statements taken as a whole. The introductory section, the financial section’s combining statements, individual fund statements and schedules, and the statistical section information present additional analysis and are not a required part of the basic financial statements. The statements and schedules are management’s responsibility, and derive from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. We subjected these statements and schedules to the auditing procedures we applied to the basic financial statements. We also applied certain additional procedures, including comparing and reconciling statements and schedules directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves in accordance with auditing standards generally accepted in the United States of America. In our opinion, these statements and schedules are fairly stated in all material respects in relation to the basic financial statements taken as a whole. We did not subject the introductory section and statistical section information to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or any other assurance on them.

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Cleveland Municipal School District Cuyahoga County Independent Auditor’s Report Page 3

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2014, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report describes the scope of our internal control testing over financial reporting and compliance, and the results of that testing, and does not opine on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Dave Yost Auditor of State Columbus, Ohio December 31, 2014

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Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

The discussion and analysis of the School District’s financial performance provides an overall review of the School District’s financial activities for the fiscal year ended June 30, 2014. The intent of this discussion and analysis is to look at the School District’s financial performance as a whole; readers should also review the transmittal letter, notes to the basic financial statements and financial statements to enhance their understanding of the School District’s financial performance.

Financial Highlights Key financial highlights for 2014 are as follows: 

Total current and other assets decreased by $50.3 million and capital assets increased by $49.7 million, resulting in a net decrease in total assets of $0.6 million in Governmental Activities.



Total short-term liabilities decreased $1.1 million and total long-term liabilities decreased $7.7 million, resulting in a net decrease in total liabilities of $8.8 million in Governmental Activities.



Total net position increased $9.7 million in Governmental Activities.



General revenues accounted for $696.3 million in revenue or 78.3% of all revenues for Governmental Activities. Program specific revenues in the form of charges for services, sales, grants or contributions accounted for $193.4 million or 21.7% of total revenues of $889.7 million.



Total program expenses were $880.1 million in Governmental Activities.



Among major funds, the General Fund had $698.3 million in revenues and other financing sources and $670.5 million in expenditures and other financing uses. The General Fund’s fund balance increased by $27.8 million.

Using this Comprehensive Annual Financial Report (CAFR) This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand The School District as an entire operating entity. The statements begin at a summary level and expand to detailed financial activities. The Statement of Net Position and Statement of Activities provide information about the activities of the entire School District, presenting both an aggregate view of the School District’s current finances and a longer-term view of those finances. Fund financial statements provide the next level of detail. For governmental funds, these statements present how services were financed in the short-term as well as what remains for future spending. The fund financial statements also look at the School District’s most significant funds with all other nonmajor funds presented in total in one column. The General Fund, the Debt Service Fund, and the Classroom Facilities Fund, are the most significant governmental funds. Reporting the School District on a Government-Wide Basis Statement of Net Position and the Statement of Activities While this document contains the large number of funds utilized by the School District to provide programs and activities, the view of the School District as an entity looks at all financial transactions and asks the -4-

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

question, “How did we do financially during 2014?” The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets and liabilities using the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into consideration all of the current year’s revenues and expenses regardless of when cash was received or paid. These two statements report the School District’s net position and changes in those net positions. This change in net position is important because it tells the reader whether the financial position of the School District, as a whole, has improved or diminished. The causes of this change may be the result of many factors, some financial, some not. Non-financial factors include the School District’s property tax base, current property tax laws in Ohio restricting revenue growth, facility conditions, required educational programs, general inflation and other factors. All of the School District’s programs and services are reported as Governmental Activities in the Statement of Net Position and the Statement of Activities. Governmental Activities consists of functions that are principally supported by taxes and intergovernmental revenues. Such activities include instruction, support services, operation and maintenance of plant, pupil transportation, operation of non-instructional services and extracurricular activities among others for the School District. Currently, the School District has no Business-Type Activities, which include functions that are intended to recover all or a significant portion of their costs through user fees and charges. Reporting the School District’s Most Significant Funds Fund Financial Statements The analysis of the School District’s major funds begins on page 19. Fund financial reports provide detailed information about the School District’s major funds. The School District uses many funds to account for its financial transactions. However, these fund financial statements concentrate on the School District’s most significant funds. The School District’s major governmental funds are the General Fund, the Debt Service Fund, and the Classroom Facilities Fund. Governmental Funds - Most of the School District’s activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District’s general government operations and the basic services it provides. Governmental fund information helps the reader determine the amount of financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements. Proprietary Funds - Proprietary funds have historically operated as enterprise and internal service funds using the same basis of accounting as business-type activities. The School District has no enterprise funds. The internal service fund is used to account for and finance its uninsured risks of loss and associated expenses attributable to deductibles and self-insured retention limits for general liability and property damage claim settlements and judgments. Also, it used to account for and finance the Districts self-insurance programs for employee medical benefits. -5-

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

The School District on a Government-Wide Basis The Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District’s net position for 2014 compared to 2013: Table 1 Net Position Governmental Activities ($ In Millions) Governmental Activities 2014 2013 Assets Current and Other Assets Capital Assets

$

Total Assets

644.8 780.7

$

695.1 731.0

Change $

(50.3) 49.7

1,425.5

1,426.1

(0.6)

Liabilities Current Liabilities Long-Term Liabilities

84.6 211.9

85.7 219.6

(1.1) (7.7)

Total Liabilities

296.5

305.3

(8.8)

Deferred Inflow of Resources Property Taxes

172.4

174.1

(1.7)

619.2

558.6

60.6

49.7 84.9 22.9 0.5 0.9 0.2 19.8 158.3

42.7 184.4 26.6 0.8 0.0 0.4 19.7 113.5

7.0 (99.5) (3.7) (0.3) 0.9 (0.2) 0.1 44.8

Net Assets Net Investment in Capital Assets Restricted Restricted for Debt Service Restricted for Capital Projects Restricted for Classroom Facilities Maintenance Restricted for Miscellaneous State Grants Restricted for Title I Restricted for Miscellaneous Federal Grants Restricted for Other Purposes Unassigned Total Net Assets

$

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956.4

$

946.7

$

9.7

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

Graph 1 Net Position Governmental Activities ($ In Millions)

$1,600 $1,400 $1,200 $1,000 $800

2014

$600

2013

$400 $200 $0

Assets

Liabilities

Net Position

Current and other assets decreased by $50.3 million and capital assets increased by $49.7 million, resulting in an overall decrease in total assets of $0.6 million. The decrease in current and other assets is mostly attributable to a net decrease in intergovernmental receivable of $77.6 million, which is due to the District amending segment 6 of the construction program by removing three schools from the segment. The primary reason for the increase in capital assets is that the School District replaced the entire bus fleet during the fiscal year. Current liabilities decreased by $1.1 million and long-term liabilities decreased by $7.7 million, resulting in an overall decrease in total liabilities of $8.8 million. The decrease in current liabilities is due primarily to the decrease of accounts payable of $5.8 million. The decrease in long-term liabilities is due primarily to the decrease in long-term debt payments of $10.9 million due to a refunding of bonds done during the fiscal year. Total net position increased by $9.7 million. The increase was due to the unassigned net position increasing by $44.8 million. This increase was due to the District passing an operating levy in November 2012. This was the first operating levy that the District had passed in sixteen years. Also, the fund balance in the Capital Projects Funds decreased by $99.5 million. The Capital Project Funds balance decreased because the intergovernmental receivable was reduced by $73.5 million due to the District amending segment 6 of the construction project. At the end of the current year, the School District is able to report positive balances in all three categories of net position.

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Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

Table 2 shows the change in net position for fiscal years 2014 and 2013. Table 2 Changes in Net Position Governmental Activities ($ In Millions) Governmental Activities 2014 2013 Revenues General Revenues: Property Taxes Miscellaneous Investments Income Grants and Entitlements Program Revenues: Charges for Services Operating Grants Capital Grants

$

Total Revenues Program Expenses Instruction Support Services: Pupil and Instructional Staff Board of Education, Administration, Fiscal and Business Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Interest and Fiscal Charges Total Expenses Change in Net Assets

$

-8-

$

55.1 (12.4) 1.6 (46.7)

9.2 125.4 2.1

(0.2) 55.9 1.0

889.7

835.4

54.3

577.5

553.1

24.4

66.1

89.4

(23.3)

57.4 62.2 56.9 17.5 35.8 6.5 0.1

61.2 59.9 30.7 20.0 37.0 7.0 11.6

(3.8) 2.3 26.2 (2.5) (1.2) (0.5) (11.5)

880.0

869.9

10.1

(34.5)

44.2

981.2

(34.5)

946.7 $

213.8 23.8 1.3 459.8

9.0 181.3 3.1

9.7

Net Assets Beginning of Year Net Assets End of Year

268.9 11.4 2.9 413.1

Change

956.4

$

946.7

$

9.7

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

Graph 2 Revenue for Governmental Activities ($ In Millions) 2014 696.3 193.4 $ 889.7

General Revenues Program Revenues Total Revenues

$

2013 698.7 136.7 $ 835.4 $

Governmental Activities - Revenue $800 $600 $400 $200 $0

2014

2013

Program Revenues

General Revenues

General Revenues General revenues for the School District are comprised almost entirely of property tax collections and grants from various sources. Property taxes made up 38.6% and 30.6% and grants made up 59.3% and 65.8 % of general revenues for governmental activities for the School District in fiscal years 2014 and 2013, respectively. The unusual nature of property tax legislation in the State of Ohio creates the need to routinely seek voter approval for increases in operating funds to maintain a constant level of service. As a result of legislation enacted in 1976, the overall revenue generated by a voted millage does not increase as a result of inflation. As an example, a homeowner with a home valued at $100,000 (assessed value of $35,000) and taxed at 1.0 mill would pay $35.00 annually in taxes. If three years later the home was reappraised and increased to $200,000 (assessed value of $70,000) the effective tax rate would become .5 mil and the owner would still pay $35.00. Because of this taxation methodology, real property tax assessments due to the School District have held steady for the past several years. Collection rates have declined and there has been some increase in delinquencies in the past several years due to the slowing economy and slightly higher unemployment rates for the City of Cleveland. The voters of the City of Cleveland approved a new property tax levy in May 2001 (Issue 14), the first since 1996. This four year levy was approved to support the payment of the debt service for bonds issued for the school facility construction/renovation program and to support the ongoing maintenance of those facilities. Collections cannot be used to support the general operations of the School District. The collection on that levy began in January 2002. The voters of the City of Cleveland approved a new property tax levy in November 2012 (Issue 106), the first operating levy since 1996. This four year levy was approved to support The Cleveland Plan (H.B. 525) that was signed into law in July 2012. Fourteen mills will be allocated to the current expenses of the District and -9-

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

one mill will be allocated to the current expenses of partnering community school. The collection on that levy began in January 2013. The primary source of grant revenue is State general operating aid known as the “Foundation Program Aid”. Established by Ohio law and funded by biennial appropriations, the Foundation Program is a statutory program through which the State currently makes direct payments to school districts based upon a statutory formula. Moneys distributed to a school district under the existing Foundation Program are required to be used for current operating expenses, unless specifically allocated by the State for some other purpose. Program Revenues Operating and capital grants comprise 95.4% of total program revenues of the School District. These grants, obtained mainly from the Federal Government, State of Ohio and the Ohio School Facilities Commission, support specific educational programs and objectives as defined by these agencies as well as the capital programs. The amount available to the School District may vary from year to year depending on amounts made available by these agencies and the needs of the School District. Table 3 Total and Net Cost of Program Services Governmental Activities ($ In Millions) Total Cost of Services 2014

Net Cost of Services 2014

Total Cost of Services 2013

Net Cost of Services 2013

Instruction Support Services: Pupil and Instructional Staff Board of Education, Administration, Fiscal and Business Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Interest and Fiscal Charges

$

$

$

$

Total Expenses

$

577.5

(475.3)

553.1

(495.2)

66.1

(31.8)

89.4

(52.1)

57.4 62.2 56.9 17.5 35.8 6.5 0.1

(46.5) (54.2) (53.1) (15.8) (4.4) (5.4) (0.1)

61.2 59.9 30.7 20.0 37.0 7.0 11.6

(56.5) (57.0) (30.1) (19.7) (4.4) (6.4) (11.7)

880.0

$

(686.6)

$

869.9

$

(733.1)

The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 above shows, for governmental activities, (services supported by tax revenue and unrestricted State entitlements), the total cost of services and the net cost of services. The largest Governmental Activities program expense remains instruction, comprising 65.6% of the total cost of services. When combined with pupil and instructional support these categories make up 73.1% of the total cost of services. This make-up is consistent with the general educational objectives of the School District. The - 10 -

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

dependence upon general revenues for governmental activities is apparent. 82.3% of instruction activities are mainly supported through taxes and general revenues. Similarly, for all governmental activities general revenue support is 78.0%. The community, as a whole, is by far the primary support for the School District students. The School District’s Funds Information about the School District’s major funds starts on page 19. These funds are accounted for using the modified accrual basis of accounting. All governmental funds had total revenues and other financing sources of $949.5 million and expenditures and other financing uses of $946.3 million, resulting in a net increase in fund balances of $3.2 million. The General Fund is the chief operating fund of the School District. At the end of the current fiscal year, unassigned fund balance of the general fund was $58.1 million, while total fund balance increased to a $71.3 million surplus. The net changes in fund balances for the year were most significant in the General Fund and the Classroom Facilities Capital Projects Fund. The fund balance in the General Fund increased $27.8 million. The increase in fund balance can be attributed to several items related to increasing revenues. Property Tax Revenue increased $29.7 million due to the new operating levy that was passed in November 2012. Federal Unrestricted Grants-in-Aid increased by $5.9 million due to the increase in the Medicaid reimbursement the District received. The Classroom Facilities capital projects fund balance decreased $25.9 million. The decrease was due to the continuing construction on three new high schools during the year. Funding of this program is described in more detail in the Capital Assets and Debt Administration section. General Fund Budgeting Highlights The School District’s budget is prepared according to Ohio law and is based on accounting for transactions on a cash basis for receipts, disbursements and encumbrances. The General Fund is the most significant fund to be budgeted and is the main operating fund of the School District. For the General Fund total actual revenues and other financing sources were $697.3 million, which was $1.2 million less than the final budget estimate. The School District received slightly less State Foundation Aid than anticipated The final expenditure and other financing uses budget was $699.6 million. Total actual expenditures and other financing uses was $685.8 million, or $13.8 million below the final budget estimates. This was mainly due to a continuing effort by the School District’s management to reduce its expenditures to lower future operating deficits. The General Fund’s ending unencumbered cash balance totaled $80.9 million, which was $12.6 million more than the final budgeted amount.

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Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

Capital Assets and Debt Administration Capital Assets At the end of fiscal year 2014 the School District had $780.7 million invested in capital assets is net of accumulated depreciation. Table 4 shows fiscal year 2014 balances compared to 2013: Table 4 Capital Assets at June 30, 2014 (Net of Depreciation) ($ In Millions) Governmental Activities 2014 2013

Change

Land Land Improvements Buildings and Improvements Vehicles and Equipment Intangible Assets Construction in Progress

$

32.6 0.1 652.9 18.8 1.7 74.6

$

33.2 0.2 605.8 2.7 3.7 85.4

$

(0.6) (0.1) 47.1 16.1 (2.0) (10.8)

Totals

$

780.7

$

731.0

$

49.7

All capital assets, except for land and construction in progress, are reported net of depreciation. In 2000, a Facilities Assessment Commission was established to review the condition of the School District’s facilities. The Commission recommended that a complete renovation program of all School District facilities be undertaken and that a substantial contribution from the State of Ohio (through the Ohio School Facilities Commission) could be included in the proposed construction and renovation plan by participation in the Classroom Facilities Assistance Program (CFAP). Since then, the School District and the Ohio School Facilities Commission have created a Master Facilities Plan, which was revised in 2008 and then again in 2014, that addresses the needs of all buildings in the School District and the unique needs of the School District and its students. The Revised Master Facilities Plan has been approved by the School District’s Board, the Ohio School Facilities Commission and the State Controlling Board. The Revised Master Facilities Plan calls for building up to 22 schools and refurbishing 20 to 23 others. Projects were contingent on voters approving a November 2014 ballot issue that authorizes $200 million in bonds for the construction and a halfmill property tax for maintenance, which was passed. The State would add more than $2 for every $1 that the District contributes to construction. Since 2000, the District has built 34 schools and fully renovated seven others. New homes for three high schools are currently under construction and scheduled to be ready next year. Construction began in 2002 utilizing funding from several sources as described below under Debt Administration. Initial work focused mainly on making every facility warm, safe and dry. Concurrently, new facilities have been constructed and others significantly renovated and others inactivated for student use. The complete program is currently estimated to be finished in 2019. See Note 11 to the basic financial statements for additional information on capital assets. - 12 -

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

Debt Administration At June 30, 2014 the School District had $161.4 million in bonds, notes and other long term obligations outstanding, $41.5 million due within one year. Table 5 summarizes bonds and notes outstanding. Table 5 Outstanding Debt, at Year End ($ In Millions) Governmental Activities 2014 General Obligation Bonds and Notes: 2001 H.B. 264 Energy Conservation Notes $ 2.6 2002 School Facilities Improvement Bonds 0.0 2004 School Facilities Improvement Bonds 0.0 2010 School Facilities Improvement Bonds 55.0 2012 School Facilities Improvement Bonds 19.1 2013 School Facilities Improvement Bonds 36.2 2014 School Facilities Improvement Bonds 10.5 QZAB Bonds: 2001 QZAB - Technology Academy 5.5 2001 QZAB - Arts Academy 5.8 2001 QZAB - Literacy Academy 10.0 Other Long-Term Obligations: Capital Lease Obligation 16.7 $ 161.4 Total Graph 3 Debt and Debt Limit ($ In Millions) 2014 2013 Total Debt $ 161.4 $ 172.3 Total Debt Limit $ 446.1 $ 438.2

$600 $500 $400 $300 $200 $100 $0

Debt and Debt Limit At June 30 Amounts in Millions

2014

2013 Fiscal Year

Total Debt

Total Debt Limit

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Governmental Activities 2013 $

3.6 4.0 22.2 55.0 20.6 45.6 0.0 5.5 5.8 10.0

$

0.0 172.3

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

In order to undertake the initial stages of planning and to perform some required work on its facilities to make them “warm, safe and dry,” the School District utilized several borrowing/funding sources. One source totaling $21.3 million, the Qualified Zone Academy Bonds (QZAB), was put in place just before the beginning of the 2002 fiscal year. These bonds were used to support facility renovations at seven specific school sites. Another source, the $11.5 million H.B. 264 Energy Conservation Notes was used to renovate the environmental controls at school facilities across the School District. In November 2001, the School District issued $35 million School Facility Bond Anticipation Notes. These Notes represented the first installment of the $335 million of facility construction/renovation borrowing approved by voters in May 2001. In October 2002, the School District replaced the short-term School Facility Bond Anticipation Notes with long-term School Facility Bonds. An additional $40 million of new proceeds was borrowed at that time, representing the second installment of the $335 million approved borrowing capacity. In July 2004, the School District issued $125 million of School Improvement Bonds, the third installment. In December 2005, the School District issued $30 million of School Facility Bond Anticipation Notes, representing the fourth installment of the $335 million approved borrowing capacity. In March 2007, the School District issued $30 million of School Facility Bond Anticipation Notes, representing the fifth installment of the $335 million approved borrowing capacity. In December 2007, the School District issued an additional $5 million of new proceeds representing the sixth installment of the $335 million approved borrowing capacity. In December 2008, the School District issued $15 million of School Improvement Bond Anticipation Notes representing the seventh installment of the $335 million approved borrowing capacity. In September 2010, the School District issued $55 million of School Improvement Bond Anticipation notes representing the eighth and final installment of the $335 million approved borrowing capacity. Due to the School District’s participation in the Credit Enhancement Program, Fitch, Moody’s and S&P have assigned programmatic ratings of “AA”, “Aa2”, and “AA”, respectively, to the School District’s bonds. The School District applied for underlying ratings from Fitch, S&P and Moody’s. As a result of the application process, Fitch assigned an underlying rating of “A-“ to the bonds, Moody’s assigned an underlying rating of “A2” to the bonds, and S&P assigned an underlying rating of “BBB+” to the bonds. The School District’s underlying ratings and the ratings with regard to the School District’s participation in the Credit Enhancement Program have been published by the respective rating services. At June 30, 2014, the School District’s overall legal debt margin was $338.2 million, with an unvoted debt margin of $5.0 million. See Note 17 to the basic financial statements for additional information on all longterm obligations. Current Issues In November 2012, the voters of the city of Cleveland approved a four year 15 mill operating levy. With the passing of the four year levy, the District is projecting a positive unencumbered cash balance through fiscal year 2016. In addition, there are other ongoing issues to be addressed over the next five years as described below. Race to the Top Fund – The Race to the Top Fund is a program in result of the American Recovery and Reinvestment Act of 2009 (ARRA). The ARRA provided $4.35 billion for the Race to the Top Fund, a competitive grant program designed to encourage and reward States that are creating the conditions for education innovation and reform; achieving significant improvement in student outcomes, including making substantial gains in student achievement, closing the achievement gaps, improving high school graduation - 14 -

Cleveland Municipal School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2014 Unaudited

rates, and ensuring student preparation for success in college and careers; and implementing ambitions plans in four core education reform areas. Race to the Top rewarded States that have demonstrated success in raising student achievement and have the best plans to accelerate their reforms in the future. These States will offer models for others to follow and will spread the best reform ideas across their States, and the country. As a result of this, the State of Ohio was awarded $400,000,000 on August 24, 2010. State Foundation Payments – HB 1 replaced the prior funding formula (HB 119) with the Ohio Evidence Based Funding Model. Under the final version of the HB 1, calculations include funding for both Cleveland Municipal School District and Charter School students. HB 1 mandates that all school district pay tuition for all students who reside in the School District and attend a charter school. Foundation payments under the Ohio Revised Code (HB 1) are calculated by the Ohio Department of Education (ODE). State fund allocations for fiscal year 2012 and beyond are projected to be based on Average Daily Membership. Commercial Activity Tax – HB 66 makes provisions to replace some revenue lost due to the phase out of the Tangible Personal Property Tax. Businesses are now subject to a Commercial Activity Tax (CAT) that will provide some replacement income to school districts for lost tangible property revenues. Homestead Exemption – The recent budget bill (HB 119) included significant property tax reductions for senior citizens. The Homestead Exemption will allow senior citizen homeowners and permanently/totally disabled homeowners, regardless of income, to withhold $25,000 of market value of their owner occupied home from property taxes. Starting in 2014, individuals who turn 65 in 2014 or who become disabled after January 1, 2013, will be required to have Ohio Qualifying income ($31,000 or less for 2015 year) in order to receive Homestead Exemption based upon age or disability. Straight A Fund – The Straight A Fund was created by the State of Ohio during fiscal year 2014. This $250 million fund will provide funds to educational entities in Ohio with the drive and courage to try new approaches that meet the learning needs of its students, reduce the cost of running a school or school district, or drive more dollars in the classroom. During fiscal year 2014, the District received $6 million. Financial Forecast – The School District is required to adopt a five-year financial forecast of revenues and expenditures each year. A deficit was projected in fiscal years 2017 and beyond. The forecast includes several revenue and expense assumptions based upon recent legislation, historical trends, and future assumptions. Although the most recent forecast anticipates continuing reductions in School District student enrollment and continued increasing enrollment to charter schools, it projects a positive cash balance through fiscal year 2016. Contacting the School District’s Financial Management This financial report is designed to provide our citizen’s, taxpayers, and investors and creditors with a general overview of the School District’s finances and to show the School District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. Michael Bowen, Director of Accounting at Cleveland Municipal School District, 1111 Superior Avenue East, Cleveland, Ohio 44114 or by email [email protected]

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Basic Financial Statements

- 16 -

Cleveland Municipal School District Statement of Net Position-Governmental Activities June 30, 2014

Total Assets Equity in Pooled Cash and Cash Equivalents Cash and Cash Equivalents with Fiscal Agents Investments Investments with Fiscal Agents Receivables: Taxes Accounts Intergovernmental Accrued Interest Materials and Supplies Inventory Nondepreciable Capital Assets Depreciable Capital Assets, Net

$

140,412,680 2,819,684 61,450,348 19,230,644 368,406,859 706,412 49,555,420 388,698 1,826,475 107,235,239 673,436,306 1,425,468,765

Total Assets Liabilities Accounts Payable Accrued Wages and Benefits Retainage Payable Intergovernmental Payable Matured Compensated Absences Payable Accrued Interest Payable Claims Payable Long-Term Obligations: Due Within One Year Due in More Than One Year

49,746,815 162,158,157

Total Liabilities

296,538,281

Deeferred Inflows of Resources Property Taxes

172,492,174

12,350,604 38,065,196 2,819,685 24,019,109 2,124,503 558,744 4,695,468

Net Position Net Investment in Capital Assets Restricted Restricted for Debt Service Restricted for Capital Programs Restricted for Classroom Facilities Maintenance Restricted for Miscellaneous State Grants Restricted for Title I Restricted for Miscellaneous Federal Grants Restricted for Other Purposes Unrestricted

619,248,160 49,735,043 84,864,225 22,874,119 537,578 941,888 183,951 19,770,465 158,282,881 $

Total Net Position See accompanying notes to the basic financial statements

- 17 -

956,438,310

Cleveland Municipal School District Statement of Activities-Governmental Activities For the Fiscal Year Ended June 30, 2014

Program Revenues

Functions/Programs Instruction: Regular Special Vocational Adult/Continuing Other Support Services: Pupils Instructional Staff Board of Education Administration Fiscal Business Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Interest and Fiscal Charges Totals

Expenses

$ 381,411,371 182,682,324 11,404,778 620 1,970,489

Charges for Services and Sales

$

$ 880,063,865

$ (335,324,175) (130,151,107) (9,612,314) (562) (159,343)

0 0 0 0 0 0 0 0 0 0 0 0

(28,071,438) (3,724,572) (239,543) (34,775,418) (10,065,663) (1,442,098) (54,209,089) (53,122,280) (15,781,283) (4,431,207) (5,386,154) (93,660)

3,155,969

(686,589,906)

General Revenues Property Taxes Levied For: General Purposes Debt Service Capital Outlay Investment Income Miscellaneous Grants and Entitlements not Restricted to Specific Programs

235,958,843 30,404,951 2,498,740 2,942,716 11,360,311 413,100,316

Total General Revenues

696,265,877

$

$

38,760,754 50,997,326 1,692,844 53 1,809,839

Capital Grants and Contributions

3,155,969 0 0 0 0

35,833,670 30,250,022 264,265 43,290,224 12,274,449 1,590,930 62,189,841 56,924,644 17,526,350 35,846,103 6,510,125 93,660

4,170,473 1,533,891 99,620 5 1,307

Operating Grants and Contributions

467,558 56,314 2,311 597,459 323,162 13,915 591,810 319,926 152,101 7,806 618,561 0

7,294,674 26,469,136 22,411 7,917,347 1,885,624 134,917 7,388,942 3,482,438 1,592,966 31,407,090 505,410 0

8,956,219

$ 181,361,771

Change in Net Position Net Position Beginning of Year Net Position End of Year See accompanying notes to the basic financial statements

- 18 -

$

Total Net (Expense) Revenue and Changes in Net Position

$

9,675,971 946,762,339 $ 956,438,310

Cleveland Municipal School District Balance Sheet Governmental Funds June 30, 2014

Debt Service

General Assets Equity in Pooled Cash and Cash Equivalents Cash and Cash Equivalents with Fiscal Agents Investments Investments with Fiscal Agents Receivables: Taxes Accounts Intergovernmental Accrued Interest Interfund Materials and Supplies Inventory

$

83,640,883 0 0 0

$

Classroom Facilities

26,520,740 0 0 0

$

(9,335,075) 2,669,256 43,401,285 0

Other Governmental Funds $

29,578,498 150,428 18,049,023 19,230,644

Total Governmental Funds $

130,405,046 2,819,684 61,450,308 19,230,644

328,725,147 529,362 2,259,256 174,938 5,593,980 1,036,595

36,378,796 0 0 0 0 0

0 0 34,710,143 41,548 0 0

3,302,916 177,050 12,400,146 172,212 0 789,880

368,406,859 706,412 49,369,545 388,698 5,593,980 1,826,475

421,960,161

62,899,536

71,487,157

83,850,797

640,197,651

Liabilities Accounts Payable Accrued Wages and Benefits Retainage Payable Interfund Payable Intergovernmental Payable Matured Compensated Absences Payable

3,706,004 30,987,655 0 0 19,588,177 2,124,503

0 0 0 0 0 0

4,196,431 0 2,669,257 0 0 0

4,448,169 7,077,541 18,779 5,410,595 4,562,581 0

12,350,604 38,065,196 2,688,036 5,410,595 24,150,758 2,124,503

Total Liabilities

56,406,339

0

6,865,688

21,517,665

84,789,692

294,242,992 0

31,686,536 0

0 34,710,143

2,918,303 686,367

328,847,831 35,396,510

294,242,992

31,686,536

34,710,143

3,604,670

364,244,341

Fund Balance: Nonspendable Restricted Committed Assigned Unassigned

1,036,595 0 12,144,755 0 58,129,480

0 26,520,740 0 4,692,260 0

0 0 65,398,895 0 (35,487,569)

789,880 47,555,680 25,614,343 384,613 (15,616,054)

1,826,475 74,076,420 103,157,993 5,076,873 7,025,857

Total Fund Balances

71,310,830

31,213,000

29,911,326

58,728,462

191,163,618

Total Assets

Deferred Inflow of Resources

Property Taxes Unavailable Revenue Total Deferred Inflow of Resources

Total Liabilities, Deferred Inflows of Resources and Fund Balances

$

421,960,161

$

See accompanying notes to the basic financial statements

- 19 -

62,899,536

$

71,487,157

$

83,850,797

$

640,197,651

Cleveland Municipal School District Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities June 30, 2014

Total Governmental Funds Balances

$

191,163,618

Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds Other long-term assets are not available to pay for currentperiod expenditures and therefore are reported as unavailable revenue in the funds: Delinquent Property Taxes Grants Total

780,671,545

156,355,657 35,396,510 191,752,167

An internal service fund is used by management to charge the costs of insurance to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net assets.

5,314,696

In the statement of activities, interest is accrued on outstanding bonds, whereas in governmental funds, an interest expenditure is reported when due. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: General Obligation Bonds QZAB Bonds Compensated Absences Worker's Compensation Claims Capital Lease Obligations Total

(558,744)

(123,458,491) (21,250,000) (43,814,545) (6,667,042) (16,714,894) (211,904,972) $

Net Position of Governmental Activities See accompanying notes to the basic financial statements

- 20 -

956,438,310

Cleveland Municipal School District Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2014

Debt Service

General Revenues: Local Sources: Taxes Investment Income Tuition and Fees Extracurricular Activities Contributions and Donations Sale of Personal Property Miscellaneous State Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Federal Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Total Revenues

$

215,520,989 1,021,069 5,856,556 750 7,232 0 10,189,839

$

Other Governmental Funds

Classroom Facilities

25,076,183 109,881 0 0 0 0 0

$

0 608,118 0 0 0 0 0

$

1,958,204 1,203,648 22,212 566,470 6,149,447 717 3,672,754

Total Governmental Funds

$

242,555,376 2,942,716 5,878,768 567,220 6,156,679 717 13,862,593

400,866,811 56,856,187

3,874,195 0

0 48,908,145

372,824 18,125,599

405,113,830 123,889,931

7,986,486 0 698,305,919

0 0 29,060,259

0 0 49,516,263

0 102,343,737 134,415,612

7,986,486 102,343,737 911,298,053

314,967,783 143,341,021 11,389,145 620 158,273

0 0 0 0 0

0 0 0 0 0

13,328,281 39,270,948 707,549 0 1,816,364

328,296,064 182,611,969 12,096,694 620 1,974,637

29,721,518 6,412,277 268,543 35,187,754 10,361,102 1,571,515 52,940,807 54,258,705 17,362,617 892,561 5,934,033 12,897

0 0 0 0 610,840 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 67,624,638

5,019,481 25,000,472 0 5,110,491 1,296,213 0 9,342,500 366,544 87,354 34,559,270 554,254 7,661,895

34,740,999 31,412,749 268,543 40,298,245 12,268,155 1,571,515 62,283,307 54,625,249 17,449,971 35,451,831 6,488,287 75,299,430

964,161 406,565 0 686,151,897

14,560,000 6,075,548 177,858 21,424,246

0 0 0 67,624,638

0 0 0 144,121,616

15,524,161 6,482,113 177,858 919,322,397

Excess (Deficiency) of Revenues Over (Under) Expenditures

12,154,022

7,636,013

(18,108,375)

(9,706,004)

(8,024,344)

Other Financing Sources (Uses): Inception of Capital Lease Issuance of Sale of Bonds Payment to Refunded Bonds Escrow Agent Premium from Sale of Bonds Transfers In Transfers Out Total Other Financing Sources (Uses)

17,943,165 0 0 0 0 (2,322,394) 15,620,771

0 10,525,000 (16,913,399) 444,722 0 0 (5,943,677)

0 0 0 0 0 (7,748,164) (7,748,164)

0 0 0 0 9,320,558 0 9,320,558

17,943,165 10,525,000 (16,913,399) 444,722 9,320,558 (10,070,558) 11,249,488

Net Change in Fund Balances

27,774,793

1,692,336

(25,856,539)

Fund Balances at Beginning of Year

43,536,037

29,520,664

55,767,865

Expenditures: Current: Instruction: Regular Special Vocational Adult/Continuing Other Support Services: Pupils Instructional Staff Board of Education Administration Fiscal Business Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Capital Outlay Debt Service: Principal Retirement Interest and Fiscal Charges Bond Issuance Costs Total Expenditures

Fund Balances at End of Year

$

71,310,830

$

See accompanying notes to the basic financial statements

- 21 -

31,213,000

$

29,911,326

(385,446)

3,225,144

59,113,908 $

58,728,462

187,938,474 $

191,163,618

Cleveland Municipal School District Reconciliation of the Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2014

Net Change in Fund Balances - Total Governmental Funds

$

3,225,144

Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period. Capital Assets Additions Current Year Depreciation Total

99,865,136 (29,528,639) 70,336,497

Governmental funds only report the disposal of assets to the extent proceeds are received from the sale. In the statement of activities, a gain or loss is reported for each disposal. Revenues in the statement of activities that do not provide current financial resources are not reported in the funds. These revenues were attributed to property taxes and intergovernmental receivables Property Taxes Ohio School Facilities Grant Other Grants Total

(20,831,817)

26,307,158 (73,469,165) (2,230,900) (49,392,907)

Proceeds from the sale of bonds in the statement of revenues, expenditures and changes in fund balances that are reported as other financing sources are not reported as revenues in the statement of activities.

(10,525,000)

Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. In the statement of activities, interest is accrued on outstanding bonds and bond premiums are amortized over the terms of the bonds, whereas in the governmental funds the expenditure is reported when the bonds are issued: Accrued Interest on Bonds Total Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Compensated Absences Worker's Compensation Claims Total

15,524,161

6,121,589 6,121,589

(2,873,050) (346,694) (3,219,744)

The internal service funds used by management to charge the the costs of insurance to individual funds are not reported in the District-wide statement of activities. Governmental fund expenditures and the related internal service fund revenues are eliminated. The net revenue (expense) of the internal service fund is allocated among the governmental activities.

(1,561,952) $

Change in Net Position of Governmental Activities See accompanying notes to the basic financial statements

- 22 -

9,675,971

Cleveland Municipal School District Statement of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual General Fund For the Fiscal Year Ended June 30, 2014 Variance With Final Budget Positive (Negative)

Budgeted Amounts Original Revenues: Local Sources: Taxes Investment Income Tuition and Fees Extracurricular Activities Contributions and Donations Miscellaneous State Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Federal Sources: Unrestricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Regular Special Vocational Adult/Continuing Other Support Services: Pupils Instructional Staff Board of Education Administration Fiscal Business Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Capital Outlay Debt Service: Principal Retirement Interest and Fiscal Charges Total Expenditures Deficiency of Revenues Under Expenditures

180,124,025 516,216 5,023,033 656 6,325 9,268,635

Final $

206,021,360 590,267 5,546,540 0 7,855 10,448,052

Actual $

205,962,637 590,267 5,743,582 750 7,232 10,598,212

$

(58,723) 0 197,042 750 (623) 150,160

349,735,454 49,723,413

401,378,601 56,867,339

399,904,657 56,856,187

(1,473,944) (11,152)

6,963,452 601,361,209

7,967,498 688,827,512

7,962,352 687,625,876

(5,146) (1,201,636)

325,297,339 148,903,573 11,735,824 643 276,506

315,707,666 143,994,599 11,653,605 620 289,886

315,707,666 143,994,599 11,653,605 620 289,886

0 0 0 0 0

30,664,037 7,250,813 272,141 35,568,589 10,148,291 1,679,668 55,354,206 32,773,269 18,277,944 925,749 6,177,160 13,372

30,545,155 7,657,218 272,124 48,932,562 10,576,154 2,634,219 56,571,401 32,730,030 23,371,743 904,487 6,328,621 12,895

30,545,155 7,657,218 272,124 35,140,804 10,576,154 2,634,219 56,571,401 32,730,030 23,371,743 904,487 6,328,621 12,895

0 0 0 13,791,758 0 0 0 0 0 0 0 0

861,152 421,605 686,601,881

964,161 406,565 693,553,711

964,161 406,565 679,761,953

0 0 13,791,758 12,590,122

(85,240,672)

(4,726,199)

7,863,923

9,690,000 (3,722,250) (2,322,394) 3,645,356

9,690,000 (3,722,250) (2,322,394) 3,645,356

9,690,000 (3,722,250) (2,322,394) 3,645,356

(81,595,316)

(1,080,843)

11,509,279

12,590,122

Fund Balances at Beginning of Year

56,397,195

56,397,195

56,397,195

0

Prior Year Encumbrances Appropriated

12,951,829

12,951,829

12,951,829

0

Other Financing Sources (Uses): Advances In Advances Out Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances

Fund Balances at End of Year

$

(12,246,292)

See accompanying notes to the basic financial statements

- 23 -

$

68,268,181

$

80,858,303

0 0 0 0

$

12,590,122

Cleveland Municipal School District Statement of Fund Net Position Proprietary Fund June 30, 2014

Governmental Activities Internal Service Fund Assets: Current Assets: Equity in Pooled Cash and Cash Equivalents

$

Liabilities: Current Liabilities: Claims Payable

10,010,164

4,695,468

Net Position: Unrestricted

$

See accompanying notes to the basic financial statements

- 24 -

5,314,696

Cleveland Municipal School District Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Fund For the Fiscal Year Ended June 30, 2014

Governmental Activities Internal Service Fund Operating Revenues: Charges for Services

$

58,626,878

Operating Expenses: Claims and Claim Adjustment Expenses

60,938,830

Total Operating Expenses

60,938,830

Operating Loss

(2,311,952)

Nonoperating Revenues (Expenses): Transfers In

750,000 (1,561,952)

Change in Net Position

6,876,648

Net Position Beginning of Year $

Net Position End of Year See accompanying notes to the basic financial statements

- 25 -

5,314,696

Cleveland Municipal School District Statement of Cash Flows Proprietary Fund For the Fiscal Year Ended June 30, 2014

Governmental Activities Internal Service Fund Increase In Cash and Cash Equivalents: Cash Flows from Operating Activities: Cash Received from Interfund Services Provided Cash Payments for Claims and Claim Adjustment Expenses

$

58,626,878 (59,189,908) (563,030)

Net Cash Provided by Operating Activities Cash Flows from Non-Capital Financing Activities Cash Received through Transfers from Other Funds

750,000

Net Increase in Cash and Cash Equivalents

186,970

Cash and Cash Equivalents at Beginning of Year

9,823,194

Cash and Cash Equivalents at End of Year

$

10,010,164

$

(2,311,952)

Reconciliation of Income to Net Cash Provided by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Increase in Claims Payable

1,748,922 $

Net Cash Provided by Operating Activities See accompanying notes to the basic financial statements

- 26 -

(563,030)

Cleveland Municipal School District Statement of Fiduciary Assets and Liabilities Agency Funds June 30, 2014

Assets Equity in Pooled Cash and Cash Equivalents Taxes Receivable

$

2,261,347 6,593,183

Total Assets

$

8,854,530

$

535,637 183,385 6,409,798 1,725,710

$

8,854,530

Liabilities Due to Students Interfund Payable Due to Others Payroll Withholdings Total Liabilities

See accompanying notes to the basic financial statements

- 27 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Note 1 - Description of the School District and Reporting Entity A. School District and Board of Education The Board of Education of the School District (the “Board”) is a political and corporate body charged with the responsibility of managing and controlling the affairs of the School District, and is governed by the general laws of the State of Ohio (the “Ohio Revised Code”). The Board is comprised of nine members who were appointed by the Mayor of the City of Cleveland. On November 5, 2002, the voters of Cleveland elected to maintain the current government structure, which gives the Mayor the authority to continue appointing board members. B. Financial Reporting Entity A reporting entity is comprised of the primary government, component units and other organizations that are included to insure that the financial statements are not misleading. The primary government of the School District consists of all funds, departments, boards and agencies that are not legally separate from the School District. For the School District, this includes general operations, food service, capital projects and student related activities of the School District. Within the School District boundaries, there are also various non-public schools. Current State legislation provides funding to these non-public schools. These monies are received and disbursed on behalf of the non-public school by the Chief Financial Officer of the School District, as directed by the non-public school. The activity of these State monies by the School District is reflected in a special revenue fund for financial reporting purposes. Component units are legally separate organizations for which the School District is financially accountable. The School District is financially accountable for an organization if the School District appoints a voting majority of the organization's governing board and (1) the School District is able to significantly influence the programs or services performed or provided by the organization; or (2) the School District is legally entitled to or can otherwise access the organization’s resources; the School District is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or the School District is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the School District in that the School District approves the budget, the issuance of debt or the levying of taxes. The School District has no component units. The Cleveland Public Library and the City of Cleveland have been defined as related organizations and the Ohio Schools Council and the Bond Accountability Commission as jointly governed organizations. These organizations are discussed further in Note 19 and Note 20 to the basic financial statements.

Note 2 - Summary of Significant Accounting Policies The financial statements of the Cleveland Municipal School District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to local governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The most significant of the School District’s accounting policies are described below.

- 28 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

A. Basis of Presentation The School District’s basic financial statements consist of government-wide statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information. Government-wide Financial Statements The statement of net position and the statement of activities display information about the School District as a whole. These statements include the financial activities of the primary government, except for fiduciary funds. The activity of the internal service fund is eliminated to avoid “doubling up” revenues and expenses. The statement of net position presents the financial condition of the governmental activities of the School District at fiscal year-end. The statement of activities presents a comparison between direct expenses and program revenues for each program or function of the School District’s governmental activities. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and interest earned on grants that is required to be used to support a particular program. Revenues which are not classified as program revenues are presented as general revenues of the School District, with limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each governmental activity program is self-financing or draws from the general revenues of the School District. Fund Financial Statements During the year, the School District segregates transactions related to certain School District functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the School District at this more detailed level. The focus of governmental fund financial statements is on major funds. Each major fund is presented in a separate column. Nonmajor funds are aggregated and presented in a single column. The internal service funds are presented in a single column on the face of the proprietary fund statements. Fiduciary funds are reported by type. B. Fund Accounting The School District uses funds to maintain its financial records during the year. Fund accounting is designed to demonstrate legal compliance and to aid management by segregating transactions related to certain School District functions or activities. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. The various funds of the School District are grouped into the categories of governmental, proprietary, and fiduciary. Governmental Funds Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following are the School District's major governmental funds: General Fund The general fund is used to account for all financial resources, except those required to be accounted for in another fund. The general fund is available to the School District for any purpose provided it is expended or transferred according to the general laws of Ohio. - 29 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Debt Service Fund The debt service fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Classroom Facilities Fund The classroom facilities fund is used to account for monies received and expended in connection with contracts entered into by the School District for the construction or renovation to classroom facilities. The other governmental funds of the School District account for grants and other resources whose use is restricted to a particular purpose. Proprietary Fund Type Proprietary funds focus on the determination of operating income, changes in net position, financial position and cash flows and are classified as either enterprise or internal service. The School District only has internal service funds. Internal Service Funds The internal service funds account for the financing of services provided by one department or agency to other departments or agencies of the School District on a costreimbursement basis. The internal service fund is used to account for and finance its uninsured risks of loss and associated expenses attributable to deductibles and self-insured retention limits for general liability and property damage claim settlements and judgments and self-insurance programs for employee medical benefits. Fiduciary Funds Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into four classifications: pension trust funds, investment trust funds, private-purpose trust and agency funds. Trust funds are used to account for assets held by the School District under a trust agreement for individuals, private organizations, or other governments and are therefore not available to support the School District’s own programs. The School District has no trust funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The School District has two agency funds, one which accounts for student activities and one which accounts for various payroll withholding items. C. Measurement Focus Government-wide Financial Statements The government-wide financial statements are prepared using the economic resources measurement focus. All assets and all liabilities associated with the operation of the School District are included on the statement of net position. The statement of activities presents increases (i.e. revenues) and decreases (i.e. expenses) in total net position. Fund Financial Statements All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds. Like the government-wide statements, the internal service funds are accounted for on a flow of economic resources measurement focus. All assets and all liabilities associated with the operation of this fund are included on the statement of net position. The statement of changes in fund net position presents increases (i.e., revenues) and decreases (i.e., expenses) in total net position. The statement of cash flows - 30 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

provides information about how the School District finances and meets the cash flow needs of its internal service fund activities. D. Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Proprietary and fiduciary funds also use the accrual basis of accounting. Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred inflows of resources, and in the presentation of expenses versus expenditures. Revenues - Exchange and Non-Exchange Transactions Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the School District, available means expected to be received within sixty days of the fiscal year-end. Nonexchange transactions, in which the School District receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied (See Note 8). Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements, in which the School District must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the School District on a reimbursement basis. On a modified accrual basis, revenue from nonexchange transactions must also be available before it can be recognized. Under the modified accrual basis, the following revenue sources are considered to be both measurable and available at fiscal year-end: advance on property taxes, investment income, the State’s share of the classroom facility project, tuition, grants and student fees. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. Deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statements of financial position report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. For the School District, deferred inflows of resources included property taxes and unavailable revenue. Property taxes represent amounts for which there is an enforceable legal claim as of June 30, 2014, but which were levied to finance fiscal year 2015 operations. These amounts have been recorded as a deferred inflow on both the government-wide statement of net position and the governmental fund financial statements. Unavailable revenue is reported only on the governmental funds balance sheet, and represents receivables which will not be collected within the available period. For the School District unavailable revenue - 31 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

includes delinquent property taxes and intergovernmental grants. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. Expenses/Expenditures On the accrual basis of accounting, expenses are recognized at the time they are incurred. The fair value of donated commodities used during the year is reported on the operating statement as an expense with a like amount reported as donated commodities revenue. Unused donated commodities are also reported as donated commodities revenue. The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation and amortization, are not recognized in governmental funds. E. Budgetary Data All funds, other than agency funds, are legally required to be budgeted and appropriated. The major documents prepared are the tax budget, the appropriation resolution and the certificate of estimated resources, which are prepared on the budgetary basis of accounting. The tax budget demonstrates a need for existing or increased tax rates. The certificate of estimated resources establishes a limit on the amounts that the Board may appropriate. The appropriation resolution is the Board’s authorization to spend resources and sets annual limits on expenditures plus encumbrances at a level of control selected by the Board. The legal level of control has been established by the Board at the fund level. The certificate of estimated resources may be amended during the year if projected increases or decreases in revenue are identified by the Chief Financial Officer/Treasurer. The amounts reported as the original budgeted amounts in the budgetary statements reflect the amounts in the certificate when the original appropriations were adopted. The amounts reported as the final budgeted amounts in the budgetary statements reflect the amounts in the final amended certificate that was in effect at the time the final appropriations were passed by the Board of Education. The appropriation resolution is subject to amendment by the Board throughout the year with the restriction that appropriations may not exceed estimated revenues. The amounts reported as the original budgeted amounts reflect the first appropriation for that fund that covered the entire fiscal year, including amounts automatically carried over from prior years. The amounts reported as the final budgeted amounts represent the final appropriation amounts passed by the Board during the fiscal year. F. Cash and Cash Equivalents To improve cash management, cash received by the School District is pooled. Monies for all funds, including the proprietary fund, are maintained in this pool. Individual fund integrity is maintained through School District records. Each fund’s interest in the pool is presented as “Equity in Pooled Cash and Cash Equivalents” or “Investments” on the financial statements. The School District utilizes a fiscal agent to hold monies set-aside for debt service payments. Monies are placed with a fiscal agent to ensure adequate payment of debt when it comes due. The balances in these accounts are presented on the financial statements as “Cash and Cash Equivalents with Fiscal Agents” and “Investments with Fiscal Agents”. During fiscal year 2014, investments were limited to STAR Ohio, repurchase agreements, certificates of deposit, treasury notes and bills, federal agency securities and commercial paper. - 32 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Except for nonparticipating investment contracts, investments are reported at fair value, which is based on quoted market prices. Nonparticipating investment contracts, such as repurchase agreements, are reported at cost. The School District has invested funds in the State Treasury Asset Reserve of Ohio (STAR Ohio) during fiscal year 2014. STAR Ohio is an investment pool managed by the State Treasurer’s Office, which allows governments within the State to pool their funds for investment purposes. STAR Ohio is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in STAR Ohio are valued at STAR Ohio’s share price, which is the price the investment could be sold for on June 30, 2014. Under existing Ohio statute, interest earnings are allocated to the general fund unless the Board of Education has, by resolution, specified funds to receive an allocation of interest earnings. Interest revenue credited to the general fund during fiscal year 2014 amounted to $1,021,069 which includes $91,167 assigned from other School District funds. For presentation on the financial statements, investments of the cash management pool and investments with an original maturity of three months or less at the time they are purchased by the School District are considered to be cash equivalents. Investments with an initial maturity of more than three months are reported as investments. G. Fund Balance Fund Balance is divided into five classifications based primarily on the extent to which the District is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows: Nonspendable: The nonspendable fund balance category included amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. Restricted: Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation. Committed: The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by a formal action (resolution) of the Board of Education. Those committed amounts cannot be used for any other purpose unless the Board of Education removes or changes the specified use by taking the same type of action (resolution) it employed to previously commit those amounts. In contrast to fund balance that is restricted by enabling legislation, committed fund balance classification may be redeployed for other purposes with appropriate due process. Constraints imposed on the use of committed amounts are imposed by the Board of Education, separate from the authorization to raise the underlying revenue; therefore, compliance with these restraints is not considered to be legally enforceable. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. - 33 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Assigned: Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amount represents intended uses established by the Board of Education or the Chief Financial Officer which has been delegated that authority by the CEO. Unassigned: Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for a specific purpose for which amounts had been restricted, committed, or assigned. The District applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. H. Prepaid Items Payments made to vendors for services that will benefit periods beyond June 30, 2014 are recorded as prepaid items using the consumption method. A current asset for the prepaid amount is recorded at the time of the purchase and an expenditure/expense is reported in the year in which services are consumed. I. Inventory Inventories are presented at cost on a first-in, first-out basis and are expended/expensed when used. Inventories consisted of donated and purchased food and materials and supplies held for consumption. J. Capital Assets General capital assets are those assets not specifically related to activities reported in proprietary funds. These assets generally result from expenditures in the governmental funds. These assets are reported in the government-wide statement of net position but are not reported on the fund financial statements. All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and reductions during the year. Donated capital assets are recorded at their fair market values as of the date received. The School District maintains a capitalization threshold of twenty five thousand dollars. The School District does not possess any infrastructure. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not capitalized. Interest incurred during the construction of capital assets is also not capitalized. All reported capital assets, except land and construction in progress, are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Intangible assets identified pursuant to GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, have been classified separately from other assets capitalized by the School District. Depreciation is computed using the straight-line method over the following useful lives:

- 34 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Description Land Improvements Buildings and Improvements Vehicles and Equipment Internal Generated Software

Governmental Activities Estimated Lives 25 years 25 - 50 years 7 - 15 years 5-10 years

Estimated lives for buildings and improvements of schools that will be demolished or inactivated for educational purposes under the current capital facility plan have been adjusted so they are fully depreciated by the anticipated year of demolition or inactivation. K. Inter-fund Balances On fund financial statements, receivables and payables resulting from short-term inter-fund loans are classified as “inter-fund receivables/payables”. These amounts are eliminated in the governmental activities column of the statement of net assets. L. Compensated Absences Vacation benefits are accrued as a liability as the benefits are earned if the employees’ rights to receive compensation are attributable to services already rendered and it is probable that the School District will compensate the employees for the benefits through paid time off or some other means. The School District records a liability for accumulated unused vacation time when earned for all employees with more than one year of service. Sick leave benefits are accrued as a liability using the termination payment method. An accrual for earned sick leave is made to the extent it is probable that benefits will result in termination payments. The liability is an estimate based on actuarial calculations prepared by an outside actuarial firm. The entire compensated absence liability is reported on the government-wide financial statements. For governmental fund financial statements, compensated absences are recognized as a liability and expenditure to the extent payments come due each period upon the occurrence of employee resignations and retirements. These amounts are recorded in the account "accrued wages and benefits" in the fund from which the employees who have accumulated leave are paid. The General Fund is typically used to liquidate the compensated absences. M. Bond Premium On the government-wide financial statements, bond premiums are deferred and amortized over the term of the bonds using the effective interest method. Bond premiums are presented as an increase of the face amount of the bonds payable. On governmental fund statements, bond premiums are reported as another financing source when received. N. Accrued Liabilities and Long-term Obligations All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements. - 35 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources and are reported as obligations of the funds. However, claims and judgments, compensated absences, contractually required pension contributions, capital lease obligations, and EPA asbestos abatement loans that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are due for payment during the current year. In general, liabilities that mature or come due for payment during the fiscal year are considered to have been made with current available financial resources. Bonds and other long-term obligations that will be paid from governmental funds are recognized as a liability in the fund financial statements when due. O. Net Position Net Position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Net position for other purposes included resources restricted for non-public schools and community involvement. The government-wide statement of net position reports $178,907,269 of restricted net assets, none of which is restricted by enabling legislation. The School District applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. P. Internal Activity Transfers between governmental activities are eliminated on the government-wide financial statements. Internal events that are allocations of overhead expenses from one function to another or within the same function are eliminated on the Statement of Activities. Inter-fund payments for services provided and used are not eliminated. Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and after nonoperating revenues/expenses in the proprietary funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements. Q. Operating Revenue and Expenses Operating revenues are those revenues that are generated directly from the primary activity of the proprietary funds. For the School District, these revenues are charges for services for self-insurance programs. Operating expenses are necessary costs incurred to provide the good or service that is the primary activity of the fund. Any revenues and expenses not meeting the definitions of operating are reported as non-operating.

- 36 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

R. Contribution of Capital Contributions of capital in proprietary fund financial statements arise from outside contributions of capital assets, or from grants or outside contributions of resources restricted to capital acquisition and construction. The proprietary fund received no contributions of capital during the current fiscal year. S. Extraordinary and Special Items Extraordinary items are transactions or events that are both unusual in nature and infrequent in occurrence. Special items are transactions or events that are within the control of the Board of Education and that are either unusual in nature or infrequent in occurrence. Neither type of transaction occurred during the current fiscal year. T. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Note 3 – Change in Accounting Principles For fiscal year 2014, the School District has implemented Governmental Accounting Standard Board (GASB) Statement No. 66, “Technical Corrections – 2012; an amendment of GASB Statements No.10 and No. 62,” GASB Statement No. 69 “Government Combinations and Disposals of Government Operations” and GASB Statement No. 70 “Accounting and Financial Reporting for Nonexchange Financial Guarntees.” GASB Statement No. 66 objective is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The implementation of this statement did not result in any change in the School District’s financial Statements. GASB Statement No. 69 objective is to improve financial reporting by addressing accounting and financial reporting for government combinations and disposals of government operations. The term government combinations is used in this Statement to refer to a variety of arrangements including mergers and acquisitions. Government combinations also include transfers of operations that do not constitute entire legally separate entities and in which no significant consideration is exchanged. Transfers of operations may be present in shared service arrangements, reorganizations, redistricting, annexations, and arrangements in which operation is transferred to a new government created to provide those services. The implementation of this statement did not result in any change in the School District’s financial statements. GASB Statement No. 70 provides accounting and financial reporting guidance to state and local governments that offer non-exchange financial guarantees to others and for governments that receive guarantees on their obligations. The implementation of this statement did not result in any change in the School District’s financial statements.

- 37 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Note 4 – Fund Deficits The following funds had deficit fund balances as of June 30, 2014: Special Revenue Funds Auxilary Services Race to the Top Title VI-B Special Education Vocational Education Improving Teacher Quality Title II-A Other Federal

$

735,367 4,674,542 1,634,394 279,388 834,066 2,647,560

The deficits in the special revenue funds resulted from the recognition of accrued liabilities. The general fund is liable for any deficit in these funds and provides transfers when cash is required, rather than when accruals occur.

Note 5 – Fund Balances Fund balance is classified as nonspendable, restricted, committed, assigned and/or unassigned based primarily on the extent to which the School District is bound to observe constraints imposed upon the use of the resources in the government funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented below:

- 38 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Fund Balances

General

Other Governmental Funds

Classroom Facilites

Debt Service

Total Governmental Funds

Nonspendable Inventory

$

1,036,595

$

0

$

0

$

789,880

$

1,826,475

Restricted for Debt Service Payments

0

26,520,740

0

0

26,520,740

Capital Improvements

0

0

0

3,344,098

3,344,098

Classroom Facilities Maintenance

0

0

0

17,919,000

17,919,000

Other Local

0

0

0

247,820

247,820

Other State Grants

0

0

0

376,838

376,838

Other Purposes

0

0

0

25,667,924

25,667,924

0

26,520,740

0

47,555,680

74,076,420

Capital Improvements

0

0

65,398,895

16,945,351

82,344,246

Classroom Facilities Maintenance

0

0

0

3,051,810

3,051,810

Auxiliary Services (NPSS)

0

0

0

925,207

925,207

Total Restricted Committed to:

Food Service

0

0

0

69,725

69,725

Title VI - B Special Educaiton

0

0

0

92,336

92,336

Vocational Education

0

0

0

126,061

126,061

0

0

0

1,147,134

1,147,134

Other Purposes

Title I

12,144,755

0

0

3,256,719

15,401,474

Total Committed

12,144,755

0

65,398,895

25,614,343

103,157,993

0

0

0

384,613

384,613

Assigned to: Classroom Facilities Maintenance Debt Service Payments Total Assigned Unassigned (Deficit) Total Fund Balances

0

4,692,260

0

0

4,692,260

0

4,692,260

0

384,613

5,076,873

58,129,480

0

$ 71,310,830

$ 31,213,000

(35,487,569) $

29,911,326

(15,616,054) $ 58,728,462

7,025,857 $ 191,163,618

Note 6 - Budgetary Basis of Accounting While the School District is reporting financial position, results of operations and changes in fund balance on the basis of generally accepted accounting principles (GAAP basis), the budgetary basis as provided by law is based upon accounting for certain transactions on a basis of cash receipts, disbursements and encumbrances. The Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (NonGAAP Basis) and Actual presented for the general fund is presented on the budgetary basis to provide a meaningful comparison of actual results with the budget. The major differences between the budget basis and GAAP basis are that: 1.

Revenues are recorded when received in cash (budget basis) as opposed to when susceptible to accrual (GAAP basis); - 39 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

2.

Expenditures are recorded when paid in cash (budget basis) as opposed to when the liability is incurred (GAAP basis);

3.

In order to determine compliance with Ohio law, and to reserve that portion of the applicable appropriation, total outstanding encumbrances (budget basis) are recorded as the equivalent of an expenditure, as opposed to assigned or committed fund balance for that portion of outstanding encumbrances not already recognized as an account payable (GAAP basis);

4.

Investments are reported at cost (budget basis) rather than fair value (GAAP basis).

The following table summarizes the adjustments necessary to reconcile the GAAP basis statement to the budgetary basis statement on a fund type basis for the general fund.

Net Change in Fund Balance GAAP Basis Net Adjustment for Revenue Accruals Advances In Net Adjustment for Expenditure Accruals Advances Out Adjustment for Encumbrances Budget Basis

$

27,774,793 (10,680,043) 9,690,000 6,100,132 (3,722,250) (17,653,353)

$

11,509,279

Note 7 - Deposits and Investments The School District has chosen to follow State statutes in order to classify monies held by the School District into three categories. Active deposits are public deposits necessary to meet current demands on the School District treasury. Active monies must be maintained either as cash in the School District treasury, in commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts. Inactive deposits are public deposits that the Board has identified as not required for use within the current five year period of designation of depositories. Inactive deposits must either be evidenced by certificates of deposit maturing not later than the end of the current period of designation of depositories, or by savings or deposit accounts including, but not limited to, passbook accounts. Interim deposits are deposits of interim monies. Interim monies are those monies which are not needed for immediate use but which will be needed before the end of the current period of designation of depositories. Interim deposits must be evidenced by time certificates of deposit maturing not more than one year from the date of deposit or by savings or deposit accounts including passbook accounts. Protection of the School District’s deposits is provided by the Federal Deposit Insurance Corporation (FDIC) and/or Securities Investor Protection Corporation (SIPC), by eligible securities pledged by the - 40 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

financial institution as security for repayment or by a single collateral pool established by the financial institution to secure the repayment of all public monies deposited with the institution. Under Ohio statutes and School District investment policy, interim monies may be deposited or invested in the following securities: 1.

United States Treasury Notes, Bills, Bonds, or any other obligation or security issued by the United States Treasury or any other obligation guaranteed as to principal and interest by the United States;

2.

Bonds, notes, debentures, or any other obligations or securities issued by any federal government agency or instrumentality, including but not limited to, the Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, Government National Mortgage Association, and Student Loan Marketing Association. All federal agency securities shall be direct issuances of federal government agencies or instrumentalities;

3.

Written repurchase agreements in the securities listed above provided that the market value of the securities subject to the repurchase agreement must exceed the principal value of the agreement by at least two percent and be marked to market daily, and that the term of the agreement must not exceed thirty days;

4.

Bonds and other obligations of the State of Ohio;

5.

No-load money market mutual funds consisting exclusively of obligations described in division (1) or (2) of this section and repurchase agreements secured by such obligations, provided that investments in securities described in this division are made only through eligible institutions;

6.

The State Treasurer's investment pool (STAR Ohio);

7.

Certain banker’s acceptances and commercial paper notes for a period not to exceed one hundred and eighty days in an amount not to exceed twenty-five percent of the interim monies available for investment at any one time; and,

8.

Under limited circumstances, corporate debt interests rated in either of the two highest classifications by at least two nationally recognized rating agencies.

Investments in stripped principal or interest obligations, reverse repurchase agreements and derivatives are prohibited. The issuance of taxable notes for the purpose of arbitrage, the use of leverage and short selling are also prohibited. An investment must mature within five years from the date of purchase unless matched to a specific obligation or debt of the School District, and must be purchased with the expectation that it will be held to maturity. Investments may only be made through specified dealers and institutions. Payment for investments may be made only upon delivery of the securities representing the investments to the Chief Financial Officer/Treasurer or, if the securities are not represented by a certificate, upon receipt of confirmation or transfer from the custodian.

- 41 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Deposits Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of bank failure, the School District’s deposits may not be returned to it. Protection of School District deposits is provided by the Federal Deposit Insurance Corporation (FDIC) as well as qualified securities pledged by the financial institution holding the assets. By Ohio law, financial institutions must collateralize public deposits. The face value of the pooled collateral must equal at least 105 percent of public funds deposited. Collateral is held by trustees including the Federal Reserve Bank and other designated third party trustees of the financial institutions. At fiscal year end, the School District’s bank balance was $113,978,270. Of the bank balance, $16,313,017 was covered by federal depository insurance and $97,665,253 was uninsured but collateralized with securities held by a pledging financial institution or by its trust department or agent although not in the School District’s name. Investments Investments are reported at fair value. As of June 30, 2014, the School District had the following investments: Maturity More Than One Year But Less Than Five Years

Less Than One Year U.S. Agency Obligations

$

Commercial Paper

33,766,654

$

117,110,100

$

150,876,754

33,988,260

0

33,988,260

105

0

105

STAR Ohio Total Portfolio

$

Total

67,755,019

$

117,110,100

$

184,865,119

Interest Rate Risk Ohio Revised Code and School District investment policy limits security purchases to those that mature within five years of the settlement date. School District investment policy also limits commercial paper purchases to issues from companies incorporated in the United States which have assets in excess of $500 million and whose issues are rated in the highest classification by at least two standard rating services. The commercial paper must mature within 180 days of settlement date and the total holding of commercial paper may not exceed 25 percent of the portfolio, under Ohio Revised Code and School District investment policy. Money market mutual funds must be rated in the highest classification by at least one standard rating service and invest exclusively in eligible securities listed above, under School District investment policy. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the School District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Federal Home Loan Bank Bonds, Federal National Mortgage Association Bonds, Federal Home Loan Mortgage Corporation Bonds, Federal Farm Credit Bank and Federal Home Loan Mortgage Corporation Discounted Notes are exposed to custodial credit risk in that they are uninsured, unregistered and held by the counterparty’s trust department or agent but not in the School District’s name. The School District has no investment policy dealing with investment custodial credit risk beyond the requirement in State statute that prohibits payment for - 42 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

investments prior to the delivery of the securities representing such investments to the treasurer or qualified trustee. Credit Risk The School District’s investments at June 30, 2014 in FHLMC, FNMA, FFCB and FHLB agency securities were rated AAA by Standard & Poor’s. The investments in STAR Ohio were rated AAAm by Standard & Poor’s. The School District has an investment policy to minimize credit risk by diversifying assets by issuer, ensuring that required minimum credit quality ratings exist and maintaining adequate collateralization of certificates of deposits. Concentration of Credit Risk The School District places no limit on the amount it may invest in any one issuer. The following is the School District’s allocation as of June 30, 2014: Percentage of Investments

Investments FHLB

31.07%

FHLMC

24.52%

Commercial Paper

18.39%

FNMA

17.37%

FFCB

8.66%

STAR Ohio

0.00%

Note 8 - Property Taxes Property taxes are levied and assessed on a calendar year basis while the school district fiscal year runs from July through June. First half tax collections are received by the school district in the second half of the fiscal year. Second half tax distributions occur in the first half of the following fiscal year. Property taxes include amounts levied against all real and public utility located in the School District. Real property tax revenue received in calendar 2014 represents collections of calendar year 2014 taxes. Real property taxes received in calendar year 2013 were levied after April 1, 2012, on the assessed value listed as of January 1, 2012, the lien date. Assessed values for real property taxes are established by State law at thirty-five percent of appraised market value. Real property taxes are payable annually or semiannually. If paid annually, payment is due December 31; if paid semi-annually, the first payment is due December 31 with the remainder payable by June 20. Under certain circumstances, State statute permits alternate payment dates to be established. Public utility property tax revenue received in calendar 2014 represents collections of calendar year 2013 taxes. Public utility real and tangible personal property taxes received in calendar year 2013 became a lien December 31, 2011, were levied after April 1, 2012 and are collected in 2012 with real property taxes. Public utility real property is assessed at thirty-five percent of true value; public utility tangible personal property currently is assessed at varying percentages of true value. The School District receives property taxes from Cuyahoga County. The County Auditor periodically advances to the School District its portion of the taxes collected. Second-half real property tax payments collected by the County by June 30, 2014, are available to finance fiscal year 2014 operations. The amount available to be advanced can vary based on the date the tax bills are sent. - 43 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Accrued property taxes receivable includes real property and public utility property taxes which are measurable as of June 30, 2014 and for which there is an enforceable legal claim. Although total property tax collections for the next fiscal year are measurable, only the amount of real property taxes available as an advance at June 30 were levied to finance current fiscal year operations and are reported as revenue at fiscal year end. The portion of the receivable not levied to finance current fiscal year operations is offset to deferred inflows of resources – property taxes. The amount available as an advance at June 30, 2014 was $40,328,254, which is compromised of $34,482,155 in the general fund, $4,692,260 in the debt service fund, $769,226 in the partnering community school fund and $384,613 in the classroom facilities maintenance special revenue fund. The amount available as an advance at June 30, 2013, was $29,151,353, which is comprised of $24,900,295 in the general fund, $3,412,030 in the debt service fund, $559,352 in the partnering community school fund and $279,676 in the classroom facilities maintenance special revenue fund. The last tax settlement made by the County for fiscal year 2014 was $9,199,708 in the general fund, $1,225,416 in the debt service fund, $6,434 in the partnering community school fund and $100,444 in the classroom facilities maintenance special revenue fund. On an accrual basis, collectible delinquent property taxes have been recorded as a receivable and revenue, while on a modified accrual basis the revenue has been reported as deferred inflows of resources – unavailable revenue. The assessed values upon which the fiscal year 2014 taxes were collected are:

2013 SecondHalf Collections (in thousands of dollars) Amount Percent Agricultural/Residential and Other Real Estate Public Utility Property Total Full voted tax rate per $1,000 of assessed valuation

$ $

4,602,210 266,558 4,868,768

94.53% 5.47 100.00%

$79.80

2014 FirstHalf Collections (in thousands of dollars) Amount Percent $ $

4,601,349 298,603 4,899,952

93.91% 6.09 100.00%

$79.80

Note 9 - Receivables Receivables at June 30, 2014 consist of taxes, accounts (rent and student fees) and intergovernmental grants. All receivables are considered collectible in full due to the ability to foreclose for the nonpayment of taxes, the stable condition of State programs, and the current fiscal year guarantee of federal funds. All receivables are expected to be collected within one year except delinquent property taxes and Ohio Schools Facilities Grant.

- 44 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

A summary of the principal items of intergovernmental receivables follows: Governmental Activities

Amount

State of Ohio City of Cleveland Cuyahoga County Treasurer Cuyahoga Board of Elections Defense Finance and Accounting Services Regional Transit Authority Ohio School Facilities Grant Other State Grant and Subsidies Race to the Top Grant and Subsidies Title VI-B Grant and Subsidies Vocational Education Federal Grant and Subsidies Title I Grant and Subsidies Improving Teacher Quality Tiitle II-A Grant and Subsidies Miscellaneous Federal Grants and Subsidies Other Federal Grants and Subsidies Other

$

1,099,835 1,038,839 75,013 37,339 33,901 1,210 34,710,143 163,464 1,396,011 976,907 316,591 8,206,965 509,355 53,731 635,218 115,023

Total Intergovernmental Receivables

$

49,369,545

Note 10 – Contingencies A. Grants The School District received financial assistance from federal and state agencies in the form of grants. The expenditure of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the School District at June 30, 2014. B. Litigation The School District is party to various legal proceedings. The School District is of the opinion that ultimate disposition of all such claims will not have a material effect, if any, on the financial condition of the School District. C. Attendance Audit The Auditor of State (AOS) issued its Statewide Audit of Student Attendance Data and Accountability System on February 11, 2013, a statewide assessment of school year 2010-11 student attendance and enrollment practices for select Ohio schools. AOS referred the Cleveland Municipal School District as a district with evidence of removing students from enrollment without lawful reason, regardless of motivation to the Ohio Department of Education (ODE) and U.S. Department of Education Office of the Inspector General (IG) for further investigation and recalculation of the school report cards. The removal - 45 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

of students does not necessarily imply malicious intent. The ODE and IG have not yet determined the impact of these results.

Note 11 - Capital Assets Capital asset activity for the fiscal year ended June 30, 2014, was as follows: Balance 6/30/13

Additions

Balance 6/30/14

Deletions

Governmental Activities Capital Assets, not being depreciated: Land

$

Construction in Progress Total Capital Assets, not being Depreciated

33,201,164

$

0

$

(592,968)

$

32,608,196

85,382,570

83,909,591

(94,665,118)

74,627,043

118,583,734

83,909,591

(95,258,086)

107,235,239

1,736,777

0

Capital Assets, being Depreciated Land Improvements Buildings and Improvemets Vehicles and Equipment Internal Generated Software Total Capital Assets, being Depreciated

0

1,736,777

912,379,299

93,092,845

(36,228,052)

969,244,092

24,511,804

18,120,786

(25,000)

42,607,590

5,981,706

0

944,609,586

111,213,631

0

5,981,706

(36,253,052)

1,019,570,165

Less: Accumulated Depreciation: Land Improvements Buildings and Improvements Vehicles and Equipment Internal Generated Software

(42,987)

0

(1,564,759)

(25,391,726)

15,591,129

(316,419,740)

(21,794,305)

(2,076,234)

25,000

(23,845,539)

(2,286,129)

(2,017,692)

0

(4,303,821)

15,616,129

(346,133,859)

(20,636,923)

673,436,306

(332,221,349)

Total Accumulated Depreciation

(29,528,639) *

612,388,237

Total Capital Assets, being Depreciated, Net Governmental Activities Capital Assets, Net

(1,521,772) (306,619,143)

$

730,971,971

81,684,992 $

165,594,583

$

(115,895,009)

* Depreciation expense was charged to governmental functions as follows: Instruction: Regular Special Vocational Support Services: Instructional Staff Administration Pupil Transportation Central Operation of Non-Instructional Services Capital Outlay Total Depreciation Expense

$

4,320 2,925,670 1,960,286 35,917 33,071 1,495 $

- 46 -

24,488,970 66,360 12,550

29,528,639

$

780,671,545

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Construction in progress is composed of the following at June 30, 2014: Project Authorization

Expended to June 30, 2014

Committed

Regular Instruction Support Services - Administration

$

174,982,772 1,779,067

$

74,627,043 420,249

$

100,355,729 1,358,818

Total

$

176,761,839

$

75,047,292

$

101,714,547

Note 12 - Risk Management A. Property and Liability The School District is exposed to various loss potentials including but not limited to: torts, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters. The School District insures through commercial insurance companies for the following:

Liability Limits

Coverage During Fiscal Year Property (Physical Damage) Insurance Boiler and Machinery Commerical Crime Insurance Inland Marine Public Officials Bond (Treasurer Bond) Builders's Risk Student Athletic

$

200,000,000 50,000,000 2,000,000 5,000,000 1,000,000 30,000,000 2,000,000

Liability Limits

Coverage During Fiscal Year Coverage A - School Liability General Liability Automobile Liability Law Enforcement Liability Nurse' Professional Liability Ohio Stop Gap Liability Coverage B - Educators Liabilty School Leaders Errors & Omissions (includes lawyer professional liability) Employment Practices Liability Sexual Harassment Sexual Misconduct/Abuse Employee Benefits Liability

- 47 -

Deductible $

250,000 250,000 100,000 250,000 N/A 50,000 N/A

Self- Insured Retention

$

6,000,000

$

250,000

$

6,000,000

$

250,000

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Settled claims have not exceeded this commercial coverage in any of the past three years, and there has been no significant reduction in insurance coverage from last year. Because of the prohibitive cost of commercial insurance, the School District in 1987, established a selfinsurance fund (an internal service fund) to account for and finance its uninsured risks of loss (insurance deductibles and/or self-insured retentions) and associated expenses attributing to liability and property damage claim settlements and judgments. Estimates of claims liabilities, based on historical cost information, for incurred claims (including incurred but not reported claims) as calculated by the School District’s Risk Management Division for all outstanding unsettled claims total $4,695,468 as of June 30, 2014, and are recorded in the Liability Self-Insurance internal service fund. B. Employee Health Benefits The School District has elected to provide medical and prescription drug benefits through a self insured program utilizing providers Medical Mutual of Ohio and Aetna Insurance companies. The maintenance of these benefits is accounted for in the Employee Benefits Self-Insurance internal service fund. Specific stop loss threshold covered per person is $350,000 a claim and there is an unlimited maximum, which is in compliance with the Federal Healthcare Reform. C. Workers’ Compensation The School District participates in the Ohio Bureau of Workers’ Compensation (BWC) Retrospective Rating Plan. Under the retrospective rating plan, the School District assumes a portion of the risk in return for a reduction in current premiums. Estimates of claims liabilities based on actuarial methods, for incurred claims as calculated by the BWC for the cumulative retrospective rating period January 1, 2005, through June 30, 2014, including the estimate for incurred but not reported (IBNR) claims totals $6,667,042. The self insurance fund is funded from the General Fund, while the workers’ compensation claims are charged to the same fund as the respective employee’s salaries are charged, utilizing a historical percentage allocation method. The claims liability reported at June 30, 2014 for liability and property damage claim settlements and judgments, medical and prescription drug benefits and workers’ compensation is based on the requirements of Governmental Accounting Standards Board Statement No. 30 which requires that a liability for unpaid claims costs, including estimates of costs relating to incurred but not reported claims, be reported. The estimate was not affected by incremental claim adjustment expenses and does not include other allocated or unallocated claim adjustment expenses. Changes in claims activity for fiscal years 2013 and 2014 are as follows:

Balance at Beginning of Year 2013 2014

$

10,451,981 9,266,894

Current Year Claims 61,514,004 66,082,460

- 48 -

Claim Payments

Balance at End of Year

62,699,091 63,986,844

$ 9,266,894 11,362,510

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Note 13 – Defined Benefit Pension Plans A. School Employees Retirement System Plan Description - The School District contributes to the School Employees Retirement System of Ohio (SERS), a cost-sharing multiple employer pension plan. SERS provides retirement, disability and survivor benefits: annual cost-of-living adjustments; and death benefits to plan members and beneficiaries. Authority to establish and amend benefits is provided by state statute per Chapter 3309 of the Ohio Revised Code. SERS issues a publicly available, stand-alone financial report that includes financial statements and required supplementary information. That report may be obtained by contacting the School Employees Retirement System of Ohio, 300 East Broad Street, Suite 100, Columbus, Ohio 43215-3746 or by calling toll free (800) 878-5853. It is also posted on SERS’ website at www.ohsers.org under Employers/Audit Resources. Funding Policy - Plan members are required to contribute 10 percent of their annual covered salary and the School District is required to contribute at an actuarially determined rate. The current School District rate is 14 percent of annual covered payroll. The contribution requirements of plan members and employers are established and may be amended, up to statutory maximum amounts, by the SERS’ Retirement Board. The Retirement Board acting with the advice of the actuary, allocates the employer contribution rate among four of the funds (Pension Trust Fund, Death Benefit Fund, Medicare B Fund and Health Care Fund) of the System. For fiscal year ending June 30, 2014, the allocation to pension and death benefits is 13.10 percent. The remaining 0.90 percent of the 14 percent employer contribution rate is allocated to the Health Care and Medicare B Funds. The School District’s contributions to SERS for the fiscal years ended June 30, 2014, 2013 and 2012 were $11,639,234, $10,936,231, and $11,238,769, respectively; 37.71 percent has been contributed for fiscal year 2014 and 100 percent for fiscal years 2013 and 2012. B. State Teachers Retirement System Plan Description - The School District participates in the State Teachers Retirement System of Ohio (STRS Ohio), a cost-sharing, multiple employer public employee retirement system. STRS Ohio provides retirement and disability benefits to members and death and survivor benefits to beneficiaries. STRS Ohio issues a stand-alone financial report that may be obtained by writing to STRS Ohio, 275 East Broad Street, Columbus, Ohio 43215-3371 or by calling (888) 227-7877, or by visiting the STRS Ohio website at www.strsoh.org. New members have a choice of three retirement plans, a Defined Benefit (DB) Plan, a Defined Contribution (DC) Plan and a Combined Plan. The DB plan offers an annual retirement allowance based on final average salary times a percentage that varies based on years of service, or an allowance based on a member’s lifetime contributions and earned interest matched by STRS Ohio funds divided by an actuarially determined annuity factor. The DC Plan allows members to place all their member contributions and employer contributions equal to 10.5 percent of earned compensation into an investment account. Investment decisions are made by the member. A member is eligible to receive a retirement benefit at age 50 and termination of employment. The member may elect to receive a lifetime monthly annuity or a lump sum withdrawal. The Combined Plan offers features of both the DC Plan and the DB Plan. In the Combined Plan, member contributions are invested by the member, and employer contributions are used to fund the defined benefit payment at a reduced level from the regular DB Plan. The DB portion of the Combined Plan payment is payable to a member on or after age 60; the DC portion - 49 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

of the account may be taken as a lump sum or converted to a lifetime monthly annuity at age 50. Benefits are established by Chapter 3307 of the Ohio Revised Code. A DB or Combined Plan member with five or more years credited service who becomes disabled may qualify for a disability benefit. Eligible spouses and dependents of these active members who die before retirement may qualify for survivor benefits. Members in the DC Plan who become disabled are entitled only to their account balance. If a member dies before retirement benefits begin, the member’s designated beneficiary is entitled to receive the member’s account balance. Funding Policy - For the fiscal year ended June 30, 2014, plan members were required to contribute 11 percent of their annual covered salaries. The School District was required to contribute 14 percent; 13 percent was the portion used to fund pension obligations. For fiscal year 2014, the portion used to fund pension obligations was also 13 percent. Contribution rates are established by the State Teachers Retirement Board, upon recommendations of its consulting actuary, not to exceed statutory maximum rates of 10 percent for members and 14 percent for employers. Chapter 3307 of the Ohio Revised Code provides statutory authority for member and employer contributions. The School District’s required contributions for pension obligations to the STRS Ohio for the fiscal years ended June 30, 2014, 2013, and 2012 were $34,757,272, $33,535,645, and $37,451,090, respectively; 83.99 percent has been contributed for fiscal year 2014 and 100 percent for fiscal years 2013 and 2012. Contributions to the DC and Combined Plans for fiscal year 2014 were $1,406,140 made by the School District and $1,104,824 made by the plan members. C. Social Security System Effective July 1, 1991, all employees not otherwise covered by the School Employees Retirement System or the Teachers Retirement System of Ohio have an option to choose Social Security or the School Retirement System. As June 30, 2014, no members of the Board of Education have elected Social Security.

Note 14 - Postemployment Benefits A. School Employees Retirement System Plan Description - The School District participates in two cost-sharing multiple employer defined benefit OPEB plans administered by the School Employees Retirement System for non-certificated retirees and their beneficiaries, a Health Care Plan and a Medicare Part B plan. The Health Care Plan includes hospitalization and physicians’ fees through several types of plans including HMO’s, PPO’s and traditional indemnity plans as well as a prescription drug program. The Medicare Part B Plan reimburses Medicare Part B premiums paid by eligible retirees and beneficiaries up to a statutory limit. Benefit provisions and the obligations to contribute are established by the System based on authority granted by State statute. The financial reports of both Plans are included in the SERS Comprehensive Annual Financial Report which can be obtained on SERS’ website at www.ohsers.org under Employers/Audit Resources. Funding Policy – State statute permits SERS to fund the health care benefits through employer contributions. Each year, after the allocation for statutorily required benefits, the Retirement Board allocates the remainder of the employer contribution of 14 percent of covered payroll to the Health Care Fund. The Health Care Fund was established and is administered in accordance with Internal Revenue - 50 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Code Section 401h. For 2014, 0.16 percent of covered payroll was allocated to health care. In addition, employers pay a surcharge for employees earning less than an actuarially determined amount; for 2014 this amount was $1,696,858. Active employee members do not contribute to the Health Care Plan. Retirees and their beneficiaries are required to pay a health care premium that varies depending on the plan selected, the number of qualified years of service, Medicare eligibility and retirement status. The School District’s contributions for health care for the fiscal years ended June 30, 2014, 2013, and 2012 were $142,159, $133,572, and $486,789 respectively; 37.71 percent has been contributed for fiscal year 2014 and 100 percent for fiscal years 2013 and 2012. The Retirement Board, acting with advice of the actuary, allocates a portion of the employer contribution to the Medicare B Fund. For 2014, this actuarially required allocation was 0.74 percent of covered payroll. The School District’s contributions for Medicare Part B for the fiscal years ended June 30, 2014, 2013 and 2012 were $657,483, $617,772, and $663,707 respectively; 37.71 percent has been contributed for fiscal year 2014 and 100 percent for fiscal years 2013 and 2012. B. School Teachers Retirement System Plan Description - The School District contributes to the cost sharing multiple employer defined benefit Health Plan administered by the State Teachers Retirement System of Ohio (STRS Ohio) for eligible retirees who participate in the defined benefit or combined pension plans offered by STRS Ohio. Benefits include hospitalization, physicians’ fees, prescription drugs and reimbursement of monthly Medicare Part B premiums. The plan is included in the report of STRS Ohio which may be obtained by visiting www.strsoh.org or by calling (888) 227-7877. Funding Policy – Ohio law authorizes STRS Ohio to offer the Plan and gives the Retirement Board authority over how much, if any, of the health care costs will be absorbed by STRS Ohio. Active employee members do not contribute to the Plan. All benefit recipients pay a monthly premium. Under Ohio Law, funding for post-employment health care may be deducted from employer contributions. For 2013, STRS Ohio allocated employer contributions equal to one percent of covered payroll to the Health Care Stabilization Fund. The School District’s contributions for health care for the fiscal years ended June 30, 2014, 2013, and 2012 were $2,673,636, $2,579,665, and $2,880,853 respectively; 83.99 percent has been contributed for fiscal year 2014 and 100 percent for fiscal years 2013 and 2012.

Note 15 – Other Employee Benefits A. Compensated Absences The criteria for determining vacation and sick leave benefits are derived from negotiated agreements and State laws. Classified employees earn five to thirty days of vacation per year, depending upon length of service and hours worked. Accumulated unused vacation time is paid to classified employees upon termination of employment. Teachers do not earn vacation time. School District employees earn sick leave, which, if not taken, accumulates until retirement. Employees may receive payment for up to 30 percent (varying by bargaining group) of accumulated sick leave of varying maximums up to $30,000.

- 51 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

B. Insurance The School District provides life insurance to most employees through Consumer Life Insurance in the amount of $10,000 for each employee ($50,000 for certain classes of employees). The School District also provides medical and prescription drug benefits through Medical Mutual of Ohio, Aetna and Kaiser Permanente, dental benefits through MetLife and vision through Spectera and Union Eye Care to all eligible employees.

Note 16 - Set-Asides The School District is required by State statute to annually set aside, in the general fund, an amount based upon statutory formula for the acquisition and construction of capital improvements. Amounts not spent by fiscal year-end or offset by similarly restricted resources received during the year must be held in cash at year-end and carried forward to be used for the same purposes in future years. The School District may still establish a budget reserve, if it so chooses; however, the requirement is no longer mandatory. The School District is also required to set aside money for any unspent portions of a bus purchase subsidy received annually from the State. The following cash basis information describes the change in fiscal year-end set-aside amounts for capital acquisitions. Disclosure of this information is required by State statute. Capital Improvements Set-Aside Reserve Balance as of June 30, 2013 Current Year Set-Aside Requirement Current Year Offsets: Tax Levy for Classroom Facilities and Maintenance Qualifying Disbursements Totals

$

(1,853,658) 0 (4,976,837)

Set-Aside Balances Carried Forward to Future Fiscal Years Set-Aside Reserve Balance as of June 30, 2014

- 52 -

(9,968,849) 6,845,670

(4,976,837) $

0

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Note 17 – Long-Term Obligations Changes in long-term obligations of the School District during fiscal year 2014 were as follows: Balance Outstanding 6/30/13 Governmental Activities: General Obligation Bonds and Notes: 2001 H.B. 264 Energy Conservation Notes 2002 School Facilities Improvement Bonds Unamortized Premium 2004 School Facilities Improvement Bonds Unamortized Premium 2010 School Facilities Improvement Bonds 2012 School Facilities Improvement Refunding Bonds 2013 School Facilities Improvement Refunding Bonds 2014 School Facilities Improvement Refunding Bonds

$

Additions

3,602,652

$

Balance Outstanding 06/30/14

Deletions

0

$

964,161

$

Amounts Due in One Year

2,638,491

$

1,014,949

0 4,046,616

0 0

0 4,046,616

0 0

0 0

20,165,000 2,023,689

0 0

20,165,000 2,023,689

0 0

0 0

55,000,000

0

0

55,000,000

0

20,610,000

0

1,535,000

19,075,000

1,580,000

45,600,000

0

9,380,000

36,220,000

8,835,000

0

10,525,000

0

10,525,000

6,325,000

151,047,957

10,525,000

38,114,466

123,458,491

17,754,949

QZAB Bonds: 2001 QZAB - Technology Academy 2001 QZAB - Arts Academy 2001 QZAB - Literacy Academy

5,500,000 5,750,000 10,000,000

0 0 0

0 0 0

5,500,000 5,750,000 10,000,000

5,500,000 5,750,000 10,000,000

Total QZAB Bonds

21,250,000

0

0

21,250,000

21,250,000

Other Long-Term Obligations: Compensated Absences Workers' Compensation Claims Capital Lease Obligation

40,941,495 6,320,348 0

4,653,840 3,378,140 17,943,165

1,780,790 3,031,446 1,228,271

43,814,545 6,667,042 16,714,894

3,492,745 4,793,484 2,455,637

Total Other Long-Term Obligations

47,261,843

25,975,145

6,040,507

67,196,481

10,741,866

Total General Obligation Bonds and Notes

Total Governmental Activities

$

219,559,800

$

36,500,145

$

44,154,973

$

211,904,972

$

49,746,815

On January 9, 2014, the School District issued $10,525,000 of School Improvement Refunding Bonds, Series 2014, at a true interest cost of approximately 3%. Proceeds of this bond issue (including a portion of the original issue premium), together with $6,124,354 of cash on hand in the District’s bond retirement fund, for a total of $16,913,400 was deposited in an escrow fund that is being used ultimately to pay principal of and interest on $10,789,045 in aggregate principal amount of certain of the District’s School Improvement Bonds, Series 2004, through June 1, 2014, the date of optional early redemption of those series 2004 Bonds. As a result, those Series 2004 bonds were defeased and considered no longer outstanding for purposes of the School District’s direct debt limitations. This refunding transaction resulted in a reduction in future debt of $7,643,843, equivalent to then-present values savings (at the time of sale of the Refunding Bonds) of $7,175,176, which, after deducting contributions to the escrow fund - 53 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

from sources other than the proceeds of the Refunding Bonds, yielded net present value savings of approximately $1,050,822. On January 29, 2013, the School District issued $45,600,000 of School Improvement Refunding Bonds, Series 2013, at a true interest cost of approximately 3%. Proceeds of this bond issue (including a portion of the original issue premium), together with $12,000,000 of cash on hand in the District’s bond retirement fund, for a total of $63,366,472.36, was deposited in an escrow fund that is being used ultimately to pay principal of and interest on $59,020,000 in aggregate principal amount of certain of the District’s School Improvement Bonds, Series 2004, through June 1, 2014, the date of optional early redemption of those Series 2004 Bonds. As a result, those Series 2004 Bonds were defeased and considered no longer outstanding for purposes of the District’s direct debt limitations. On January 11, 2012, the School District issued $20,855,000 of School Improvement Refunding Bonds, Series 2012, at a true interest cost of approximately 3%. Proceeds of this bond issue (including a portion of the original issue premium), together with $8,000,000 of cash on hand in the District’s bond retirement fund, for a total of $29,998,078, was deposited in an escrow fund which will be used to pay principal of and interest on $28,600,000 in aggregate principal amount of certain of the District’s Various Purpose Improvement and Refunding Bonds, Series 2002, through December 1, 2012, the date of optional early redemption of those Series 2002 Bonds. As a result, those Series 2002 Bonds was defeased and considered no longer outstanding for purposes of the District’s direct debt limitations. On December 21, 2010, the School District utilized cash on hand to defease $14,675,000 principal amount of outstanding 2002 School Facilities Improvement Bonds. The School District placed $15,848,185 from the debt service fund in an escrow account which was used to pay principal and interest on the defeased bonds. As a result, the bonds are considered defeased and the liability for those bonds was removed from long-term debt. The defeasance will result in a reduction in future debt service of $25,172,925. On September 29, 2010, the School District issued $55,000,000 of School Improvement Bonds, bearing interest at the rate of 5.20% per annum. The series 2010 bond issue is the third long term financing bond issue related to the School District’s participation in the Ohio School Facilities Assistance Program. The District made mandatory sinking fund payments to an escrow fund, which is part of the District’s Bond Retirement Fund, held by The Bank of New York Mellon Trust Company, N.A., as escrow agent, in the amount of $3,235,294 on December 1st of each year starting in 2010, reducing the outstanding principal amount of this series of bonds by that aggregate amount pursuant to Sections 133.01 and 133.04 of the Revised Code. On July 8, 2004, the School District issued $125,000,000 of School Facility Improvement Bonds, bearing interest at the rate of 2.00% - 5.25% per annum. The premium received on this bond issue was $3,066,194 of which $2,163,792 was transferred to the Debt Service Fund. The series 2004 bond issue is the second long-term financing drawdown of the $335 million approved by voters on May 8, 2001 (Issue 14) related to the School District’s 12-year, $1.5 billion capital plan. This debt will be retired from the Debt Service Fund. On October 1, 2002, the School District issued $124,920,000 of Various Purpose Improvement and Refunding Bonds, bearing interest at the rate of 1.45% - 5.00% per annum. $57,515,000 of the proceeds together with other available money was used to refund all of the District’s outstanding General Obligation Unlimited Tax Library Improvement Bonds, Series 1992A. $27,405,000 of the proceeds together with other available money was used to refund the District’s outstanding $35,000,000 School Facility Bond Anticipation Notes, Series 2001. $40,000,000 of the new proceeds along with the - 54 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

$35,000,000 that was refunded are being used to pay costs of renovating, rehabilitating, constructing, furnishing, equipping and otherwise improving school facilities and acquiring and improving their sites. This represented the first long-term drawdown of the $335 million approved by voters on May 8, 2001 (Issue 14). This debt will be retired from the Debt Service Fund. On July 12, 2001, the School District entered into a 15-year installment payment agreement with Citicorp North America, Incorporated for $11,500,000, bearing interest at the rate of 5.20% per annum. The proceeds will be used for the purpose of renovating and otherwise improving environmental controls at school facilities. This agreement was made in accordance with Ohio H.B. 264 and is therefore exempt from the debt limit set by Ohio bond statute. This debt will be retired from the General Fund. Qualified Zone Academy Bonds-Literacy Academy - On June 18, 2001, the School District issued $10,000,000 of non-interest-bearing obligations in order to remodel Central Middle School, Franklin D. Roosevelt Middle School, Harry E. Davis Middle School, and Martin Luther King, Jr. Middle School. The obligations were issued for a fourteen-year period with final maturity at June 17, 2015. These obligations are not general obligation bonds and will be retired from the Educational Special Trust Fund. Qualified Zone Academy Bonds-Arts Academy - On April 3, 2001, the School District issued $5,750,000 of obligations yielding 0.87 percent in order to remodel the Cleveland School of the Arts and Newton D. Baker Elementary School. The obligations were issued for a fourteen-year period with final maturity at April 2, 2015. These obligations are not general obligation bonds and will be retired from the Educational Special Trust Fund. Qualified Zone Academy Bonds-Technology Academy - On April 3, 2001, the School District issued $5,500,000 of obligations yielding 0.87 percent in order to remodel the Collinwood School. The obligations were issued for a fourteen-year period with final maturity at April 2, 2015. These obligations are not general obligation bonds and will be retired from the Educational Special Trust Fund. The School District is placing money from the General Fund for these Qualified Zone Academy Bonds into a separate escrow account held by a trustee, Huntington National Bank, in order to repay the obligation at maturity and the activity of this separate escrow account is reflected in the Educational Special Trust Fund. Compensated absences and workers’ compensation costs will be paid from the fund from which the employee is paid which, for the School District, is primarily the general fund. The School District’s overall legal debt margin was $338,246,555 with an unvoted debt margin of $4,956,949 at June 30, 2014. The School District is subject to federal arbitrage regulations. As of June 30, 2014 the District has not accrued any liability. Principal and interest requirements to retire general obligation debt, QZAB bonds and H.B. 264 Energy Conservation Notes, outstanding at June 30, 2014, are as follows:

- 55 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Fiscal Year Ending June 30, Principal General Obligation Bonds and Notes 2015 $ 17,754,949 2016 6,908,412 2017 2,260,130 2018 1,790,000 2019 2,845,000 2020-2024 15,980,000 2025-2029 75,920,000 123,458,491 QZAB Bonds 2015

Interest $

21,250,000 21,250,000

Grand Total

$

144,708,491

$

5,663,977 5,013,838 4,798,133 4,705,275 4,632,175 21,351,712 9,940,250 56,105,360

Total $

23,418,926 11,922,250 7,058,263 6,495,275 7,477,175 37,331,712 85,860,250 179,563,851

97,875 97,875

21,347,875 21,347,875

56,203,235

$ 200,911,726

In fiscal year 2014, the School District entered into an agreement to lease 225 buses. The cost of this lease was $19,068,000. This agreement is, in substance, a lease purchase (capital lease) and is classified as a long-term lease obligation in the financial statements. The following is a schedule of future lease payments and present value of net minimum lease payments as June 30, 2014:

2015 2016 2017 2018 2019 2020-21 Total minimum lease payments Less: Amount representing interest Present value of net minimum lease payments

- 56 -

Amount $ 2,724,000 2,724,000 2,724,000 2,724,000 2,724,000 4,086,000 17,706,000 991,106 $ 16,714,894

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Note 18 – Interfund Transfers and Balances A. Transfers Transfers made during the year ended June 30, 2014 were as follows: Transfers Out

Transfers To Non-Major Governmental Funds: Permanent Improvement Educational Special Trust Food Service Self Insurance Fund Totals

Classroom Facilites

General

Totals

$

0 944,394 628,000 750,000

$

7,748,164 0 0 0

$

7,748,164 944,394 628,000 750,000

$

2,322,394

$

7,748,164

$

10,070,558

The purpose of the transfer from the classroom facilities capital projects fund to the permanent improvement capital projects fund was to transfer excess dollars from one fund to another. This transfer is in compliance with the Ohio Revised Code. The purpose of the transfer from the general fund to the educational special trust special revenue fund was to fund the future debt payment of the Qualified Zone Academy Bonds, which are due in 2015. The purpose of the transfer from the general fund to the food service special revenue fund was to subsidize a portion of the expenditures for the food service programs. The purpose of the transfer from the general fund to self insurance fund was to fund the account for legal expenditures.

- 57 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

B. Interfund Balances Interfund balances at June 30, 2014, consist of the following individual fund receivables and payables: Interfund Receivable Interfund Payable Agency Funds Partnering Community Schools Non-Major Governmental Funds: Other State Race to the Top Title VI-B Carl D Perkins Vocational Education Improving Teacher Quality Title II-A Other Federal Totals

General $

183,385 103,281 2,980,000 923,970 195,451 509,355 698,538

$

5,593,980

The interfund receivable and payable are due to the timing of the receipt of grant monies by the nonmajor funds. The School District expects to receive the grant monies and repay the advance within the next fiscal year.

Note 19 - Related Organizations A. Cleveland Public Library The Cleveland Public Library (Library) is a distinct political subdivision of the State of Ohio created under Chapter 3375 of the Ohio Revised Code. A Board of Trustees appointed by the Cleveland Municipal School District Board of Education governs the Library. The Board of Trustees possesses its own contracting and budgeting authority, hires and fires personnel and does not depend on the School District for operational subsidies. Although the School District does serve as the taxing authority and issues all tax related debt on behalf of the Library, its role is limited to a ministerial function. The determination to request approval of a tax, the rate and the purpose are discretionary decisions made solely by the Board of Trustees. Financial information can be obtained from the Business Director of the Cleveland Public Library at 325 Superior Avenue, NE, Cleveland, Ohio 44114. B. City of Cleveland In November 1998, the Mayor of the City of Cleveland was given appointment authority for the School District. As approved by the State legislature, the Ohio Revised Code provided for the Mayor to appoint a Chief Executive Officer who was to be approved by the Board. The Board is comprised of nine members who were appointed by the Mayor from a pool of candidates presented to the Mayor by an independent nominating panel. The City of Cleveland’s accountability for the School District does not extend beyond appointment authority and therefore the School District is considered to be a related - 58 -

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

organization rather than a component unit of the City of Cleveland. A copy of the City of Cleveland’s comprehensive annual financial report can be obtained from the Finance Director of the City of Cleveland at 601 Lakeside Avenue, Cleveland, Ohio 44114.

Note 20 - Jointly Governed Organizations A. Ohio Schools’ Council Association The Ohio Schools Council (Council) is a jointly governed organization among various school districts in northern Ohio. The jointly governed organization was formed to purchase quality products and services at the lowest possible cost to the member districts. Each district supports the Council by paying an annual participation fee. The Council’s Board consists of seven superintendents of the participating districts whose term rotates every year. The degree of control exercised by any school district is limited to its representation on the Board. Financial information can be obtained by contacting the Executive Director of the Ohio Schools Council at 6133 Rockside Road, Suite #10, Independence, Ohio 44131. B. Bond Accountability Commission The Bond Accountability Commission (BAC) is an independent nonprofit agency that monitors the Cleveland Municipal School District’s construction and renovation program and the spending of Issue 14 tax money approved by voters in May 2001. As a commission created by the Board, the BAC is a “public body” subject to the Ohio Sunshine Law as set forth in Section 121.22 of the Ohio Revised Code, and shall conduct its business in accordance with the provisions of the Sunshine Law, including, but not limited to, establishing a reasonable method of notifying the public of the time, place and purpose of its meetings, and preparing, filing and maintaining minutes of its meetings. Other than the Board directing the Chief Executive Officer to secure initial external funding in the amount of $200,000, the Board does not assume any ongoing financial interest or responsibility for the BAC and, as a result, is considered a jointly governed organization. In fiscal year 2011, the District extended the contract with the BAC for three years in the amount of $240,000. Annual reports can be obtained by contacting James G. Darr, Administrator Bond Accountability Commission c/o Cuyahoga Community College, 2900 Community College Avenue MBA, Room 221, Cleveland, Ohio 44115.

Note 21 – Construction and Other Significant Commitments Committed Amount

Projects Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 Segment 6 Local Funding Initiatives

$

Total

$

Amount Paid

218,650,447 100,432,383 132,678,415 136,749,655 197,720,336 9,118,481 123,347,870

$

918,697,587

$

- 59 -

Remaining on Commitment

218,650,447 100,432,383 132,678,415 135,977,396 123,652,468 4,021,387 103,654,439

$

819,066,935

$

0

0 0 772,259 74,067,868 5,097,094 19,693,431 99,630,652

Cleveland Municipal School District Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2014

Segment 1 consisted of the warm, safe, dry and security updates to all buildings in addition to the construction of five buildings and renovation of three buildings. Segment 2, 3, 4, 5 and 6 consisted of the construction of thirty-two buildings, the renovation of five buildings and the demolishing of thirteen buildings. Local Funding Initiatives consisted of various projects throughout the School District.

Note 22 – Subsequent Event – Nonrecognized Events On November 4, 2014, the voters of the City of Cleveland passed a new $200 million bond levy and 0.5 mill continuing permanent improvement levy. The approval of this levy allows the District to continue the Construction Facility Program that began in 2001. With this levy, the State of Ohio will match District spending with approximately $257 million. With this new money, the District will be able to build approximately 20 new schools and refresh approximately 23 current school buildings. The permanent improvement levy will generate an approximate $2.5 million a year.

- 60 -

(THIS PAGE INTENTIONALLY LEFT BLANK)

- 61 -

Combining Statements and Individual Fund Schedules Fund Descriptions – Nonmajor Governmental Funds Nonmajor Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than capital projects) that are legally restricted to expenditures for specific purposes. Local Funds: Educational Special Trust Fund – This fund accounts for monies received from private individuals, companies and foundations for specified activities for purposes. This fund also accounts for monies being placed from the general fund for the Qualified Zone Academy Bonds into a escrow account held by a trustee in order to repay the obligation at maturity. Classroom Facilities Maintenance Fund – This fund accounts for the proceeds of a levy for the maintenance of facilities. Other Local Funds – This fund accounts for all activity in other local funds including Public School Support, Other Grants, and District Managed Activity. State Funds: Auxiliary Services (NPSS) Fund – This fund accounts for State funds which provide services and materials to pupils attending non-public schools within the School District. Straight A Fund – This fund accounts for State funds that are restricted for projects that will provide advancement in student achievement, achieve spending reductions or allow a greater share of resources to be utilized in the classroom. Miscellaneous State Grants Fund – This fund is used to account for various monies received from State agencies which are not classified elsewhere including all money for students who resides in the district but are enrolled in a community school. Other State Funds – This fund accounts for all activity in other State funds including Management Information Systems, Public School Preschool, Data Communications for School Buildings, Interactive Video Distance Learning, Vocational Education Enhancement and Alternative Schools. Federal Funds: Food Service Fund – This fund is used to record financial transactions related to food service operations. Race to the Top Fund – This fund accounts for federal monies used to provide for either a new program or expansion of an existing program to support initiatives in the following areas: Standards and Assessments; Using Data to improve Instructions; Great Teachers and Leaders; and Turning Around the Lowest-Achieving Schools. Title VI-B, Special Education Fund - This fund accounts for Federal monies used to assist schools in the identification of handicapped children, development of procedural safeguards, implementation of least restrictive alternative service patterns, and provision of full educational opportunities to handicapped children at the preschool, elementary, and secondary levels.

- 62 -

(continued)

Fund Descriptions – Nonmajor Governmental Funds (continued) Nonmajor Special Revenue Funds (continued) Vocational Education Fund – This fund accounts for revenues used in the development of vocational education programs in the following categories: secondary, post-secondary, adult, disadvantaged and handicapped persons, exemplary programs, cooperative education, construction of educational schools, ancillary services, research, advisory committees and work-study projects, including sex equity grants. Title I – This fund accounts for Federal Monies used to assist the School District in meeting the special needs of economically and educationally deprived children. Improving Teacher Quality Title II-A Fund – Funding for professional development and other programs to ensure teachers meet high quality standards. This fund also accounts for monies used to hire additional classroom teachers in elementary grades, so that the number of students per teacher will be reduced. Miscellaneous Federal Grants Fund – This fund accounts for various monies received through State agencies from the Federal Government or directly from the Federal Government which are not required to be in a separate fund. Other Federal Funds – This fund accounts for all activity in other Federal funds including School Maintenance and Operational Assistance, Title II Technology, Title I Subsidiary A, Title I Subsidiary G, Nutrition Education Training Program, Bilingual Education Program, Transition for Refugee Children, and IDEA Preschool Grant for the Handicapped.

Nonmajor Capital Projects Funds The Capital Projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). Permanent Improvement Fund – This fund accounts for local funding initiatives associated with the School Districts facility project.

- 63 -

Cleveland Municipal School District Combining Balance Sheet Nonmajor Governmental Funds June 30, 2014

Assets Equity in Pooled Cash and Cash Equivalents Cash and Cash Equivalents With Fiscal Agents Investments Investments with Fiscal Agents Receivables: Taxes Accounts Intergovernmental Accrued Interest Materials and Supplies Inventory

$

Nonmajor

Nonmajor

Total

Special Revenue Funds

Capital Projects Funds

Nonmajor Governmental Funds

26,386,114 0 0 19,230,644

$

3,302,916 177,050 12,400,146 154,546 789,880

Total Assets Liabilities Accounts Payable Accrued Wages and Benefits Retainage Payable Interfund Payable Intergovernmental Payable

3,192,384 150,428 18,049,023 0

$

0 0 0 17,666 0

29,578,498 150,428 18,049,023 19,230,644 3,302,916 177,050 12,400,146 172,212 789,880

$

62,441,296

$

21,409,501

$

83,850,797

$

3,527,319 7,047,546 0 5,410,595 4,412,153

$

920,850 29,995 18,779 0 150,428

$

4,448,169 7,077,541 18,779 5,410,595 4,562,581

20,397,613

1,120,052

21,517,665

Deferred Inflow & Resources Property Taxes Unavailable Revenue

2,918,303 686,367

0 0

2,918,303 686,367

Total Deferred Inflow of Resources

3,604,670

0

3,604,670

Total Liabilities

Fund Balance: Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances $

Total Liabilities and Fund Balances

- 64 -

789,880 44,211,582 8,668,992 384,613 (15,616,054)

0 3,344,098 16,945,351 0 0

789,880 47,555,680 25,614,343 384,613 (15,616,054)

38,439,013

20,289,449

58,728,462

62,441,296

$

21,409,501

$

83,850,797

Cleveland Municipal School District Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2014

Revenues: Local Sources: Taxes Investment Income Tuition and Fees Extracurricular Activities Contributions and Donations Sale of Personal Property Miscellaneous State Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Regular Special Vocational Other Support Services: Pupils Instructional Staff Administration Fiscal Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Capital Outlay Total Expenditures Deficiency of Revenues Under Expenditures Other Financing Sources: Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances

Nonmajor

Nonmajor

Total

Special Revenue Funds

Capital Projects Funds

Nonmajor Governmental Funds

1,958,204 1,046,076 22,212 566,470 6,149,447 0 3,670,754

$

$

- 65 -

1,958,204 1,203,648 22,212 566,470 6,149,447 717 3,672,754

0 0

372,824 18,125,599

102,343,737 134,255,323

0 160,289

102,343,737 134,415,612

13,328,281 39,270,948 707,549 1,816,364

0 0 0 0

13,328,281 39,270,948 707,549 1,816,364

5,019,481 25,000,472 5,110,491 1,296,213 8,929,917 366,544 87,354 34,559,270 554,254 0 136,047,138

0 0 0 0 412,583 0 0 0 0 7,661,895 8,074,478

5,019,481 25,000,472 5,110,491 1,296,213 9,342,500 366,544 87,354 34,559,270 554,254 7,661,895 144,121,616

(1,791,815)

(7,914,189)

(9,706,004)

1,572,394 0 1,572,394

7,748,164 0 7,748,164

9,320,558 0 9,320,558

(166,025)

38,658,434

Fund Balances at End of Year

$

372,824 18,125,599

(219,421)

Fund Balances at Beginning of Year Restated

0 157,572 0 0 0 717 2,000

38,439,013

(385,446)

20,455,474 $

20,289,449

59,113,908 $

58,728,462

Cleveland Municipal School District Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2014

Classroom

Educational Special Trust Assets Equity in Pooled Cash and Cash Equivalents Investments with Fiscal Agents Receivables: Taxes Accounts Intergovernmental Accrued Interest Materials and Supplies Inventory

$

Facilities Maintenance

7,026,542 19,230,644

$

0 165,105 4,223 154,546 0

Total Assets Liabilities Accounts Payable Accrued Wages and Benefits Interfund Payable Intergovernmental Payable Deferred Revenue

22,050,248 0

Other Local $

3,302,916 0 0 0 0

379,509 0 0 0 0 0 0

$

26,581,060

$

25,353,164

$

379,509

$

75,211 292,594 0 183,180 0

$

1,079,438 0 0 0 0

$

0 188,707 0 118,141 0

550,985

1,079,438

306,848

Deferred Inflow & Resources Property Taxes Unavailable Revenue

0 0

2,918,303 0

0 0

Total Deferred Inflow of Resources

0

2,918,303

0

Fund Balance: Nonspendable Restricted Committed Assigned Unassigned

0 25,367,942 662,133 0 0

0 17,919,000 3,051,810 384,613 0

0 247,820 130,487 0 (305,646)

Total Fund Balances (Deficit)

26,030,075

21,355,423

72,661

Total Liabilities

$

Total Liabilities and Fund Balances

- 66 -

26,581,060

$

25,353,164

$

379,509

Auxiliary Services (NPSS) $

(314,602) 0

Miscellaneous State Grants

Straight A Fund $

0 0 0 0 0

143,000 0

$

0 0 0 0 0

786,042 0

Other State $

0 0 0 0 0

Food Service

339,937 0

$

0 0 163,464 0 0

85,806 0 0 11,945 137,681 0 789,880

$

(314,602)

$

143,000

$

786,042

$

503,401

$

1,025,312

$

153,922 132,382 0 82,878 0

$

143,000 0 0 0 0

$

240,000 5,205 0 3,259 0

$

0 16,435 103,281 10,289 0

$

151,014 450,158 0 281,824 0

$

369,182

143,000

248,464

130,005

882,996

0 51,583

0 0

0 313,165

0 0

0 0

51,583

0

313,165

0

0

0 0 925,207 0 (1,660,574)

0 0 0 0 0

0 173,759 50,654 0 0

0 376,838 2,828 0 (6,270)

789,880 0 69,725 0 (717,289)

(735,367)

0

224,413

373,396

142,316

(314,602)

$

143,000

$

786,042

$

503,401

$

1,025,312 (continued)

- 67 -

Cleveland Municipal School District Combining Balance Sheet Nonmajor Special Revenue Funds (continued) June 30, 2014

Race To The Top Assets Equity in Pooled Cash and Cash Equivalents Investments with Fiscal Agents Receivables: Taxes Accounts Intergovernmental Accrued Interest Materials and Supplies Inventory

$

(1,069,764) 0

Title VI-B Special Education $

Vocational Education

(123,643) 0

$

(258,238) 0

0 0 1,396,011 0 0

0 0 976,907 0

0 0 316,591 0 0

326,247

853,264

58,353

Liabilities Accounts Payable Accrued Wages and Benefits Interfund Payable Intergovernmental Payable

782,050 756,389 2,980,000 473,541

209,377 832,881 923,970 521,430

58,091 51,781 195,451 32,418

Total Liabilities

4,991,980

2,487,658

337,741

Deferred Inflow & Resources Property Taxes Unavailable Revenue

0 8,809

0 0

0 0

Total Deferred Inflow of Resources

8,809

0

0

Total Assets

Fund Balance: Nonspendable Restricted Committed Assigned Unassigned

0 0 2,057,977 0 (6,732,519)

0 0 92,336 0 (1,726,730)

0 0 126,061 0 (405,449)

Total Fund Balances (Deficit)

(4,674,542)

(1,634,394)

(279,388)

$

Total Liabilities and Fund Balances

- 68 -

326,247

$

853,264

$

58,353

Total Title I $

$

(1,087,625) 0

Improving Teacher Quality Title II-A $

1 0

Miscellaneous Federal Grants $

190,745 0

Other Federal $

(1,761,844) 0

Nonmajor Special Revenue Funds $

26,386,114 19,230,644

0 0 8,206,965 0 0

0 0 509,355 0 0

0 0 53,731 0 0

0 0 635,218 0 0

3,302,916 177,050 12,400,146 154,546 789,880

7,119,340

509,356

244,476

(1,126,626)

62,441,296

508,400 3,354,315 0 2,099,986

0 512,939 509,355 321,128

38,246 13,701 0 8,578

88,570 440,059 698,538 275,501

3,527,319 7,047,546 5,410,595 4,412,153

5,962,701

1,343,422

60,525

1,502,668

20,397,613

0 263,316

0 0

0 31,228

0 18,266

2,918,303 686,367

263,316

0

31,228

18,266

3,604,670

0 0 1,147,134 0 (253,811)

0 0 0 0 (834,066)

0 48,751 103,972 0 0

0 77,472 248,668 0 (2,973,700)

789,880 44,211,582 8,668,992 384,613 (15,616,054)

893,323

(834,066)

152,723

(2,647,560)

38,439,013

7,119,340

$

509,356

$

244,476

$

- 69 -

(1,126,626)

$

62,441,296

Cleveland Municipal School District Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Fiscal Year Ended June 30, 2014

Classroom

Educational Special Trust Revenues: Local Sources: Taxes Investment Income Tuition and Fees Extracurricular Activities Contributions and Donations Miscellaneous State Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Facilities Maintenance

0 1,039,554 0 0 6,149,447 0

$

Other Local

1,958,204 5,916 0 0 0 0

$

0 0 0 566,470 0 2,503,749

0 0

372,824 1,930,207

0 0

0 7,189,001

0 4,267,151

0 3,070,219

Expenditures: Current: Instruction: Regular Special Vocational Other Support Services: Pupils Instructional Staff Administration Fiscal Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Total Expenditures

1,516 1,298 522 84,879

0 0 0 0

1,392,112 280,527 0 0

59,728 3,560,389 310,702 2,965 40,000 17,708 72,398 950 225 4,153,280

0 0 0 47,700 8,459,161 0 0 0 0 8,506,861

206,469 0 282,815 234,605 131,464 0 0 0 554,029 3,082,021

Excess (Deficiency) of Revenues Over (Under) Expenditures

3,035,721

(4,239,710)

Other Financing Sources: Transfers In Total Other Financing Sources (Uses)

944,394 944,394

Net Change in Fund Balances Fund Balances (Deficit) at Beginning of Year Restated Fund Balances (Deficit) at End of Year

$

- 70 -

(11,802)

0 0

0 0

3,980,115

(4,239,710)

(11,802)

22,049,960

25,595,133

84,463

26,030,075

$

21,355,423

$

72,661

Auxiliary Services (NPSS)

$

$

0 575 0 0 0 300,794

Miscellaneous State Grants

Straight A Fund

$

0 0 0 0 0 0

$

0 0 0 0 0 0

Other State

$

Food Service

0 0 22,212 0 0 0

$

0 31 0 0 0 866,211

0 8,914,254

0 6,000,000

0 330,773

0 458,675

0 491,690

0 9,215,623

0 6,000,000

0 330,773

0 480,887

19,886,449 21,244,381

0 0 0 0

4,900,000 0 0 0

0 0 0 0

165,559 37,548 0 0

0 0 0 0

0 256,553 0 0 11,936 0 0 7,354,069 0 7,622,558

0 0 1,100,000 0 0 0 0 0 0 6,000,000

59,187 597,604 0 0 0 0 0 1,361 0 658,152

230,932 12,562 0 0 0 0 14,956 0 0 461,557

0 0 0 0 0 0 0 23,010,326 0 23,010,326

1,593,065

0

(327,379)

19,330

(1,765,945)

0 0

0 0

1,593,065

0

(327,379)

19,330

(1,137,945)

(2,328,432)

0

551,792

354,066

1,280,261

(735,367)

$

0

0 0

$

224,413

0 0

$

373,396

628,000 628,000

$

142,316 (continued)

- 71 -

Cleveland Municipal School District Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds (continued) For the Fiscal Year Ended June 30, 2014

Race To The Top Revenues: Local Sources: Taxes Investment Income Tuition and Fees Extracurricular Activities Contributions and Donations Miscellaneous State Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Regular Special Vocational Other Support Services: Pupils Instructional Staff Administration Fiscal Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources: Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) at Beginning of Year Restated $

Fund Balances (Deficit) at End of Year

- 72 -

Title VI-B Special Education

0 0 0 0 0 0

$

Vocational Education

0 0 0 0 0 0

$

0 0 0 0 0 0

0 0

0 0

0 0

10,717,564 10,717,564

11,102,633 11,102,633

1,585,743 1,585,743

2,940,848 0 0 3,150

0 7,026,789 0 0

0 0 706,785 0

901,600 6,918,302 206,170 12,387 6,600 0 0 0 0 10,989,057

1,784,240 274,035 1,389,542 177,164 0 0 0 634,406 0 11,286,176

0 778,093 43,403 0 14,924 0 0 0 0 1,543,205

(271,493)

(183,543)

42,538

0 0

0 0

0 0

(271,493)

(183,543)

42,538

(4,403,049)

(1,450,851)

(4,674,542)

$

(1,634,394)

(321,926) $

(279,388)

Total Improving Teacher Quality Title II-A

Title I

$

0 0 0 0 0 0

$

$

0 0 0 0 0 0

Nonmajor Special Revenue Funds

Other Federal

$

0 0 0 0 0 0

$

1,958,204 1,046,076 22,212 566,470 6,149,447 3,670,754

0 0

0 0

0 0

0 0

372,824 18,125,599

42,146,937 42,146,937

5,937,816 5,937,816

177,820 177,820

10,788,775 10,788,775

102,343,737 134,255,323

3,913,569 23,245,698 0 1,621,880

0 5,834,670 0 0

0 0 242 106,455

14,677 2,844,418 0 0

13,328,281 39,270,948 707,549 1,816,364

977,893 6,235,568 1,515,650 703,466 193,455 270,253 0 3,498,810 0 42,176,242

0 0 23,704 45,232 0 0 0 0 0 5,903,606

179,556 0 0 6,060 8,339 0 0 0 0 300,652

619,876 6,367,366 238,505 66,634 64,038 78,583 0 59,348 0 10,353,445

5,019,481 25,000,472 5,110,491 1,296,213 8,929,917 366,544 87,354 34,559,270 554,254 136,047,138

34,210

(122,832)

435,330

0 0

0 0

0 0

(29,305)

34,210

(122,832)

435,330

922,628

(868,276)

275,555

(29,305)

0 0

$

0 0 0 0 0 0

Miscellaneous Federal Grants

893,323

$

(834,066)

$

152,723

(1,791,815)

1,572,394 1,572,394 (219,421)

(3,082,890) $

- 73 -

(2,647,560)

38,658,434 $

38,439,013

Cleveland Municipal School District Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2014

Permanent Improvement Assets Equity in Pooled Cash and Cash Equivalents Cash and Cash Equivalents With Fiscal Agents Investments Receivables: Accrued Interest Total Assets Liabilities Accounts Payable Accrued Wages and Benefits Retainage Payable Intergovernmental Payable

$

3,192,384 150,428 18,049,023 17,666

$

21,409,501

$

920,850 29,995 18,779 150,428

Total Liabilities

1,120,052

Fund Balance: Restricted Committed

3,344,098 16,945,351

Total Fund Balances

20,289,449

Total Liabilities, Deferred Inflow and Fund Balances

$

21,409,501

- 74 -

Cleveland Municipal School District Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Fiscal Year Ended June 30, 2014

Permanent Improvement Revenues: Local Sources: Investment Income Sale of Personal Property Miscellaneous Total Revenues

$

Expenditures: Current: Support Services: Operation and Maintenance of Plant Capital Outlay Total Expenditures

412,583 7,661,895 8,074,478

Deficiency of Revenues Under Expenditures

(7,914,189)

Other Financing Uses: Transfers In

7,748,164

Net Change in Fund Balances

(166,025)

Fund Balances at Beginning of Year Fund Balances at End of Year

157,572 717 2,000 160,289

20,455,474 $

20,289,449

- 75 -

Fund Descriptions – Fiduciary Funds Fiduciary funds are used to account for assets held by the School District in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. The following is the School District’s fiduciary fund type:

Agency Funds District Agency Fund – This fund reflects resources which accounts for various payroll withholding items. Student Managed Activity – This fund reflects resources that belong to the student bodies of the various schools. Partnering Community School – This fund reflects resources that belong to the Community Schools that partner with the District.

- 76 -

Cleveland Municipal School District Combining Statement of Fund Net Position Internal Service Funds June 30, 2014

Employee Benefits Self-Insurance

Liability Self-Insurance Assets Current Assets: Equity in Pooled Cash and Cash Equivalents

$

2,002,547

Liabilities Current Liabilities: Claims Payable Net Position Unrestricted

$

3,068,151

$

(1,065,604)

- 77 -

8,007,617

Totals

$

1,627,317

$

6,380,300

10,010,164

4,695,468

$

5,314,696

Cleveland Municipal School District Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Fiscal Year Ended June 30, 2014

Employee Benefits Self-Insurance

Liability Self-Insurance Operating Revenues: Charges for Services

$

Operating Expenses: Claims and Claim Adjustment Expenses Operating Income (Loss)

0

$

Totals

58,626,878

$

58,626,878

1,051,248

59,887,582

60,938,830

(1,051,248)

(1,260,704)

(2,311,952)

Nonoperating Revenues (Expenses): Transfers In

750,000

0

750,000

Change in Net Position

(301,248)

(1,260,704)

(1,561,952)

Net Position at Beginning of Year

(764,356)

7,641,004

6,876,648

Net Position at End of Year

$

(1,065,604)

- 78 -

$

6,380,300

$

5,314,696

Cleveland Municipal School District Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2014

Employee Benefits Self-Insurance

Liability Self-Insurance

Totals

Increase (Decrease) In Cash and Cash Equivalents: Cash Flows from Operating Activities: Cash Received from Interfund Services Provided Cash Payments for Claims and Claim Adjustment Expenses

$

$

(929,643)

Net Cash Provided (Used) by Operating Activities Cash Flows from Non-Capital Financing Activities Cash Received through Transfers from Other Funds

(179,643)

Cash and Cash Equivalents at Beginning of Year

58,626,878 (58,260,265)

$

366,613

750,000

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents at End of Year

0 (929,643)

2,182,190

58,626,878 (59,189,908) (563,030)

0

750,000

366,613

186,970

7,641,004

9,823,194

$

2,002,547

$

8,007,617

$

10,010,164

$

(1,051,248)

$

(1,260,704)

$

(2,311,952)

Reconciliation of Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities Increase (Decrease) in Claims Payable Net Cash Provided by Operating Activities

121,605 $

- 79 -

(929,643)

1,627,317 $

366,613

1,748,922 $

(563,030)

Fund Descriptions – Fiduciary Funds Fiduciary funds are used to account for assets held by the School District in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. The following is the School District’s fiduciary fund type:

Agency Funds District Agency Fund – This fund reflects resources which accounts for various payroll withholding items. Student Managed Activity – This fund reflects resources that belong to the student bodies of the various schools. Partnering Community School – This fund reflects resources that belong to the Community Schools that partner with the District.

- 80 -

Cleveland Municipal School District Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Fiscal Year Ended June 30, 2014

Beginning Balance July 1, 2013 District Agency Fund Assets: Equity in Pooled Cash and Cash Equivalents

$

Liabilities: Payroll Withholdings

Additions

1,708,810

$

16,900

Ending Balance June 30, 2014

Deductions

$

0

$

1,725,710

1,708,810

16,900

0

1,725,710

Partnering Community School Assets: Equity in Pooled Cash and Cash Equivalents Taxes Receivable

0 0

4,020,343 6,593,183

4,020,343 0

0 6,593,183

Liabilities: Interfund Payable Due to Others

0 0

183,385 10,430,141

0 4,020,343

183,385 6,409,798

Student Managed Activity Assets: Equity in Pooled Cash and Cash Equivalents

598,060

630,496

692,919

535,637

Liabilities: Due to Students

598,060

630,496

692,919

535,637

All Agency Funds Assets: Equity in Pooled Cash and Cash Equivalents Taxes Receivable

2,306,870 0

4,667,739 6,593,183

4,713,262 0

2,261,347 6,593,183

Total Assets

2,306,870

11,260,922

4,713,262

8,854,530

Liabilities: Due To Students Interfund Payable Due to Others Payroll Withholdings

598,060 0 0 1,708,810

630,496 183,385 10,430,141 16,900

692,919 0 4,020,343 0

535,637 183,385 6,409,798 1,725,710

Total Liabilities

$

2,306,870

- 81 -

$

11,260,922

$

4,713,262

$

8,854,530

Individual Fund Schedules of Revenues, Expenditures/Expenses and Changes in Fund Balance/Fund Equity – Budget (Non-GAAP Basis) and Actual

- 82 -

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Debt Service Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Taxes Investment Income State Sources: Unrestricted Grants-in-Aid Total Revenues

$

23,770,192 109,881

Variance With Final Budget Positive (Negative)

Actual

$

23,800,717 109,881

$

30,525 0

3,874,195 27,754,268

3,874,195 27,784,793

0 30,525

Expenditures: Support Services: Fiscal Debt Service: Principal Retirement Interest and Fiscal Charges Bond Issuance Costs Total Expenditures

700,000

610,840

89,160

25,349,045 6,075,548 177,858 32,302,451

25,349,045 6,075,548 177,858 32,213,291

0 0 0 89,160

Deficiency of Revenues Under Expenditures

(4,548,183)

(4,428,498)

119,685

Other Financing Sources: Proceeds from Sale of Bonds Payment to Refunded Bonds Escrow Agent Premium from Sale of Notes Total Other Financing Sources

10,525,000 (6,124,354) 444,722 4,845,368

10,525,000 (6,124,354) 444,722 4,845,368

0 0 0 0

Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year

$

- 83 -

297,185

416,870

119,685

26,103,869

26,103,869

0

26,401,054

$

26,520,739

$

119,685

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Classroom Facilities Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Investment Income State Sources: Restricted Grants-in-Aid Total Revenues

$

322,026

Variance With Final Budget Positive (Negative)

Actual

$

322,026

$

0

48,876,853 49,198,879

48,908,145 49,230,171

31,292 31,292

Expenditures: Capital Outlay Total Expenditures

140,589,580 140,589,580

140,449,722 140,449,722

139,858 139,858

Deficiency of Revenues Under Expenditures

(91,390,701)

(91,219,551)

171,150

(7,748,164) (7,748,164)

(7,748,164) (7,748,164)

0 0

(99,138,865)

(98,967,715)

171,150

Fund Balances at Beginning of Year

66,203,312

66,203,312

0

Prior Year Encumbrances Appropriated

33,337,444

33,337,444

0

Other Financing Sources: Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances

Fund Balances at End of Year

$

- 84 -

401,891

$

573,041

$

171,150

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Educational Special Trust Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Investment Income Contributions and Donations Total Revenues

$

966,088 6,044,874 7,010,962

Variance With Final Budget Positive (Negative)

Actual

$

966,088 6,044,728 7,010,816

$

0 (146) (146)

Expenditures: Current: Instruction: Regular Special Vocational Other Support Services: Pupils Instructional Staff Board of Education Administration Fiscal Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Total Expenditures

223,498 20,067 22,608 89,226

1,550 1,298 542 89,226

221,948 18,769 22,066 0

103,639 9,348,071 8,049 838,188 24,628 19,888 254,929 1,898,276 18,323 54,749 12,924,139

62,048 4,171,312 0 329,616 2,965 0 19,775 158,475 1,668 1,076 4,839,551

41,591 5,176,759 8,049 508,572 21,663 19,888 235,154 1,739,801 16,655 53,673 8,084,588

Excess of Revenues Over (Under) Expenditures

(5,913,177)

2,171,265

8,084,442

944,394 944,394

0 0

Other Financing Sources: Transfers In Total Other Financing Sources (Uses)

944,394 944,394

Net Change in Fund Balances

(4,968,783)

3,115,659

8,084,442

Fund Balances at Beginning of Year

21,923,339

21,923,339

0

841,542

841,542

0

Prior Year Encumbrances Appropriated Fund Balances at End of Year

$

- 85 -

17,796,098

$

25,880,540

$

8,084,442

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Classroom Facilities Maintenance Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Taxes Investment Income State Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Total Revenues

$

1,851,446 5,900

Variance With Final Budget Positive (Negative)

Actual

$

1,853,658 5,916

$

2,212 16

201,976 2,103,282 4,162,604

372,824 1,930,207 4,162,605

Expenditures: Support Services: Fiscal Operation and Maintenance of Plant Capital Outlay Total Expenditures

47,700 13,279,523 1,556 13,328,779

47,700 11,719,135 0 11,766,835

0 1,560,388 1,556 1,561,944

Net Change in Fund Balances

(9,166,175)

(7,604,230)

1,561,945

Fund Balances at Beginning of Year

25,591,904

25,591,904

0

2,361,788

2,361,788

0

Prior Year Encumbrances Appropriated Fund Balances at End of Year

$

- 86 -

18,787,517

$

20,349,462

170,848 (173,075) 1

$

1,561,945

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Other Local Funds For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Extracurricular Activities Miscellaneous Total Revenues

$

Expenditures: Current: Instruction: Regular Special Support Services: Pupils Administration Fiscal Operation and Maintenance of Plant Extracurricular Activities Total Expenditures Net Change in Fund Balances

566,470 2,590,124 3,156,594

Variance With Final Budget Positive (Negative)

Actual

$

566,470 2,513,124 3,079,594

$

0 (77,000) (77,000)

1,435,431 279,534

1,429,802 279,534

5,629 0

198,103 242,819 233,167 130,947 962,888 3,482,889

198,103 242,819 233,167 130,947 683,352 3,197,724

0 0 0 0 279,536 285,165

(326,295)

(118,130)

Fund Balances at Beginning of Year

367,151

367,151

0

Prior Year Encumbrances Appropriated

127,089

127,089

0

Fund Balances at End of Year

$

- 87 -

167,945

$

376,110

208,165

$

208,165

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Auxiliary Services (NPSS) Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Investment Income Miscellaneous State Sources: Restricted Grants-in-Aid Total Revenues

$

575 300,794

Variance With Final Budget Positive (Negative)

Actual

$

575 300,794

$

0 0

7,233,736 7,535,105

7,233,736 7,535,105

0 0

Expenditures: Current: Support Services: Instructional Staff Operation and Maintenance of Plant Operation of Non-Instructional Services Total Expenditures

339,141 77,975 9,673,353 10,090,469

255,508 11,936 8,797,898 9,065,342

83,633 66,039 875,455 1,025,127

Net Change in Fund Balances

(2,555,364)

(1,530,237)

1,025,127

Fund Balances at Beginning of Year Prior Year Encumbrances Appropriated Fund Balances at End of Year

$

- 88 -

136,508

136,508

0

2,566,573

2,566,573

0

147,717

$

1,172,844

$

1,025,127

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Straight A Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: State Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Regular Support Services: Administration Total Expenditures

Variance With Final Budget Positive (Negative)

Actual

6,000,000 6,000,000

$

6,000,000 6,000,000

$

0 0

4,900,000

4,900,000

0

1,100,000 6,000,000

1,100,000 6,000,000

0 0

Net Change in Fund Balances

0

0

0

Fund Balances at Beginning of Year

0

0

0

Prior Year Encumbrances Appropriated

0

0

0

Fund Balances at End of Year

$

- 89 -

0

$

0

$

0

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Miscellaneous State Grants Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: State Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Regular Adult/Continuing Other Support Services: Pupils Instructional Staff Operation and Maintenance of Plant Pupil Transportation Operation of Non-Instructional Services Total Expenditures Net Change in Fund Balances Fund Balances at Beginning of Year Prior Year Encumbrances Appropriated Fund Balances at End of Year

$

- 90 -

394,881 394,881

Variance With Final Budget Positive (Negative)

Actual

$

427,086 427,086

$

32,205 32,205

26,476 54,782 589

0 3,559 0

26,476 51,223 589

66,964 902,656 5,473 8,158 13,864 1,078,962

54,203 650,345 0 1,602 1,361 711,070

12,761 252,311 5,473 6,556 12,503 367,892

(684,081)

(283,984)

400,097

779,371

779,371

0

16,962

16,962

0

112,252

$

512,349

$

400,097

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Other State Funds For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Tuition and Fees State Sources: Restricted Grants-in-Aid Total Revenues

$

22,000

Variance With Final Budget Positive (Negative)

Actual

$

22,212

446,255 468,255

282,579 304,791

$

212 (163,676) (163,464)

Expenditures: Current: Instruction: Regular Special Support Services: Pupils Instructional Staff Administration Pupil Transportation Central Total Expenditures

170,005 37,548

166,428 37,548

3,577 0

240,830 13,078 14,981 1,159 29,430 507,031

240,830 13,038 14,973 0 15,014 487,831

0 40 8 1,159 14,416 19,200

Deficiency of Revenues Under Expenditures

(38,776)

(183,040)

(144,264)

Other Financing Uses: Advances In Advances Out Total Other Financing Sources (Uses)

250 (22,000) (21,750)

250 (22,000) (21,750)

Net Change in Fund Balances

(60,526)

(204,790)

Fund Balances at Beginning of Year

436,040

436,040

0

16,643

16,643

0

Prior Year Encumbrances Appropriated Fund Balances at End of Year

$

- 91 -

392,157

$

247,893

0 0 0 (144,264)

$

(144,264)

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Food Service Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Investment Income Food Services Miscellaneous State Sources: Restricted Grants-in-Aid Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Variance With Final Budget Positive (Negative)

Actual

31 560,926 127,812

$

31 560,926 127,812

$

0 0 0

491,690

491,690

0

22,590,567 23,771,026

22,590,569 23,771,028

2 2

23,124,806 23,124,806

23,094,807 23,094,807

29,999 29,999

Deficiency of Revenues Under Expenditures

646,220

676,221

30,001

Other Financing Sources: Transfers In Total Other Financing Sources (Uses)

628,000 628,000

628,000 628,000

0 0

1,274,220

1,304,221

30,001

(1,415,217)

(1,415,217)

Expenditures: Current: Operation of Non-Instructional Services Total Expenditures

Net Change in Fund Balances Fund Balance at Beginning of Year

141,437

Prior Year Encumbrances Appropriated Fund Balances at End of Year

$

- 92 -

440

0

141,437 $

30,441

0 $

30,001

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Race to the Top Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Federal Sources: Restricted Grants-in-Aid

$

11,305,025

Variance With Final Budget Positive (Negative)

Actual

$

10,029,938

$

(1,275,087)

Expenditures: Current: Instruction: Regular Other Support Services: Pupils Instructional Staff Administration Fiscal Operation and Maintenance of Plant Total Expenditures

3,033,697 3,150

3,033,697 3,150

0 0

862,272 9,466,924 193,492 12,387 5,072 13,576,994

862,272 9,466,924 193,492 12,387 5,072 13,576,994

0 0 0 0 0 0

Excess of Revenues Over Expenditures

(2,271,969)

(3,547,056)

(1,275,087)

Other Financing Uses: Advances In Advances Out Total Other Financing Sources (Uses)

2,980,000 (2,850,000) 130,000

2,980,000 (2,850,000) 130,000

0 0 0

Net Change in Fund Balances

(2,141,969)

(3,417,056)

(1,275,087)

(492,736)

(492,736)

0

Fund Balances at Beginning of Year

2,686,778

Prior Year Encumbrances Appropriated Fund Balances at End of Year

$

- 93 -

52,073

2,686,778 $

(1,223,014)

0 $

(1,275,087)

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Title VI-B Special Education Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Special Support Services: Pupils Instructional Staff Administration Fiscal Operation of Non-Instructional Services Total Expenditures

Actual

12,171,676 12,171,676

$

11,194,769 11,194,769

0

1,730,258 451,331 1,432,563 177,164 678,336 11,393,542

1,730,258 451,331 1,432,563 177,164 641,598 11,356,804

0 0 0 0 36,738 36,738

(162,035)

Other Financing Sources (Uses): Advances In Total Other Financing Sources (Uses)

150,000 150,000

150,000 150,000

Net Change in Fund Balances

928,134

(12,035)

Fund Balances at End of Year

(1,051,770)

- 94 -

6

(940,169)

0 0 (940,169)

(1,051,770)

123,642 $

(976,907) (976,907)

6,923,890

778,134

Prior Year Encumbrances Appropriated

$

6,923,890

Excess of Revenues Over (Under) Expenditures

Fund Balances at Beginning of Year

Variance With Final Budget Positive (Negative)

0

123,642 $

(940,163)

0 $

(940,169)

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Vocational Education Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Vocational Support Services: Instructional Staff Administration Operation and Maintenance of Plant Total Expenditures

Deficiency of Revenues Under Expenditures

1,967,735 1,967,735

Variance With Final Budget Positive (Negative)

Actual

$

1,511,144 1,511,144

$

(456,591) (456,591)

875,681

875,680

1

856,304 44,652 14,367 1,791,004

844,650 44,652 10,169 1,775,151

11,654 0 4,198 15,853

176,731

(264,007)

Other Financing Sources: Advances In Advances Out Total Other Financing Sources (Uses)

81,000 (500,000) (419,000)

81,000 (500,000) (419,000)

Net Change in Fund Balances

(242,269)

(683,007)

Fund Balances at Beginning of Year

126,164

126,164

0

Prior Year Encumbrances Appropriated

258,240

258,240

0

Fund Balances at End of Year

$

- 95 -

142,135

$

(298,603)

(440,738)

0 0 0 (440,738)

$

(440,738)

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Title I Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Regular Special Other Support Services: Pupils Instructional Staff Administration Fiscal Operation and Maintenance of Plant Pupil Transportation Operation of Non-Instructional Services Total Expenditures Excess of Revenues Over (Under) Expenditures

Actual

$

Net Change in Fund Balances Fund Balances at Beginning of Year Prior Year Encumbrances Appropriated $

- 96 -

43,398,235 43,398,235

$

(3,254,497) (3,254,497)

4,366,986 24,146,681 801,624

4,366,986 24,146,681 801,624

0 0 0

836,118 7,353,984 2,423,961 703,466 160,859 216,481 3,690,233 44,700,393

836,118 7,353,984 1,591,273 703,466 113,688 216,481 3,690,124 43,820,425

0 0 832,688 0 47,171 0 109 879,968

1,952,339

Other Financing Sources (Uses): Advances In Total Other Financing Sources (Uses)

Fund Balances at End of Year

46,652,732 46,652,732

Variance With Final Budget Positive (Negative)

(422,190)

(2,374,529)

(2,557,000) (2,557,000)

(2,557,000) (2,557,000)

0 0

(604,661)

(2,979,190)

(2,374,529)

236,157

236,157

0

2,521,392

2,521,392

0

2,152,888

$

(221,641)

$

(2,374,529)

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Improving Teacher Quality Title II-A Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Special Support Services: Administration Fiscal Total Expenditures Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year

$

- 97 -

Variance With Final Budget Positive (Negative)

Actual

6,467,573 6,467,573

$

5,958,218 5,958,218

$

(509,355) (509,355)

5,917,867

5,917,867

0

22,975 45,232 5,986,074

22,975 45,232 5,986,074

0 0 0

481,499

(27,856)

(481,499)

(481,499)

-

$

(509,355)

(509,355) 0 $

(509,355)

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Miscellaneous Federal Grants Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Federal Sources: Restricted Grants-in-Aid Total Revenues

$

537,487 537,487

Variance With Final Budget Positive (Negative)

Actual

$

527,645 527,645

$

(9,842) (9,842)

Expenditures: Current: Instruction: Vocational Other Support Services: Pupils Instructional Staff Fiscal Operation and Maintenance of Plant Total Expenditures

1,781 137,105

1,781 137,105

0 0

210,826 38,519 6,060 8,339 402,630

210,826 37,708 6,060 8,339 401,819

0 811 0 0 811

Net Change in Fund Balances

134,857

125,826

Fund Balances at Beginning of Year

(77,298)

(77,298)

0

Prior Year Encumbrances Appropriated

312,173

312,173

0

Fund Balances at End of Year

$

- 98 -

369,732

$

360,701

(9,031)

$

(9,031)

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Other Federal Funds For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Federal Sources: Restricted Grants-in-Aid Total Revenues

$

Expenditures: Current: Instruction: Regular Special Support Services: Pupils Instructional Staff Administration Fiscal Operation and Maintenance of Plant Pupil Transportation Operation of Non-Instructional Services Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures

12,325,621 12,325,621

Actual

$

11,690,400 11,690,400

0 32,429

908,969 6,357,671 413,423 76,082 59,568 96,064 126,344 11,288,851

908,969 6,335,083 402,792 66,634 59,568 96,064 62,411 11,149,822

0 22,588 10,631 9,448 0 0 63,933 139,029

1,036,770

540,578

511,000 (3,761,000) (3,250,000)

Net Change in Fund Balances

(2,213,230)

(2,709,422)

Fund Balances at End of Year

$

- 99 -

(635,221) (635,221)

1,353 3,216,948

511,000 (3,761,000) (3,250,000)

Prior Year Encumbrances Appropriated

$

1,353 3,249,377

Other Financing Sources: Advances In Advances Out Total Other Financing Sources (Uses)

Fund Balances at Beginning of Year

Variance With Final Budget Positive (Negative)

(496,192)

0 0 0 (496,192)

466,803

466,803

0

1,928,949

1,928,949

0

182,522

$

(313,670)

$

(496,192)

Cleveland Municipal School District Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget (Non-GAAP Basis) and Actual Permanent Improvement Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Local Sources: Investment Income Sale of Personal Property Miscellaneous Total Revenues

$

Expenditures: Current: Operation and Maintenance of Plant Capital Outlay Total Expenditures Deficiency of Revenues Under Expenditures Other Financing Sources: Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year Prior Year Encumbrances Appropriated Fund Balances at End of Year

$

- 100 -

81,242 2,876 2,000 86,118

Variance With Final Budget Positive (Negative)

Actual

$

94,811 2,876 2,000 99,687

$

13,569 0 0 13,569

1,346,552 27,077,843 28,424,395

420,249 26,210,923 26,631,172

926,303 866,920 1,793,223

(28,338,277)

(26,531,485)

1,806,792

7,748,164 7,748,164

7,748,164 7,748,164

(20,590,113)

(18,783,321)

22,317,903

22,317,903

0

7,418,022

7,418,022

0

9,145,812

$

10,952,604

0 0 1,806,792

$

1,806,792

Cleveland Municipal School District Schedule of Revenues, Expenses and Changes In Fund Equity - Budget (Non-GAAP Basis) and Actual Liability Self-Insurance Fund For the Fiscal Year Ended June 30, 2014

Final Budget Expenses: Claims

$

Excess of Revenues Over (Under) Expenditures

Actual

$

(1,113,354)

Other Financing Sources (Uses): Transfers In Net Change in Fund Equity Fund Equity at Beginning of Year Prior Year Encumbrances Appropriated Fund Equity at End of Year

1,113,354

$

- 101 -

Variance With Final Budget Positive (Negative)

1,091,547

$

(1,091,547)

750,000

750,000

(363,354)

(341,547)

21,807 21,807

0 21,807

1,868,835

1,868,835

0

313,354

313,354

0

1,818,835

$

1,840,642

$

21,807

Cleveland Municipal School District Schedule of Revenues, Expenses and Changes In Fund Equity - Budget (Non-GAAP Basis) and Actual Employee Benefits Self-Insurance Fund For the Fiscal Year Ended June 30, 2014

Final Budget Revenues: Charges for Services

$

Expenses: Claims

Actual

$

59,061,309

Net Change in Fund Equity

Prior Year Encumbrances Appropriated $

- 102 -

58,626,878

$

0

58,308,263

753,046

318,615

753,046

7,579,696

7,579,696

0

61,309

61,309

0

(434,431)

Fund Equity at Beginning of Year

Fund Equity at End of Year

58,626,878

Variance With Final Budget Positive (Negative)

7,206,574

$

7,959,620

$

753,046

Statistical Section

Statistical Section

FinancialReport2013-14-Tabs.indd 3

12/23/13 3:17 PM

STATISTICAL SECTION This part of the Cleveland Municipal School District’s comprehensive annual financial report presents detailed information as a context for understanding what the information in financial statements, note disclosures, and required supplementary information says about the School District overall financial health. Contents

Page

Financial Trends

S2

These schedules contain trend information to help the reader understand how the School District’s financial performance and well-being have changed over time. Revenue Capacity

S16

These schedules contain information to help the reader assess the affordability of the School District’s most significant local revenue source of Property Tax and Foundation payments. Debt Capacity

S22

These schedules present information to help the reader assess the affordability of the School District’s current levels of outstanding debt, and the ability to issue additional debt in the future. Demographic and Economic Information

S27

These schedules offer demographic and economic indicators to help the reader understand the environment within which the School District’s financial activities take place. Operating Information

S29

These schedules contain service data to help the reader understand how the information in the School District’s financial report relates to the services the School District provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The School District implemented GASB Statement 54 for the year ended June 30, 2011; schedules presenting government wide net position information include information beginning in that year. GASB 54 changed the classification of the governmental fund balance, but did not change the government-wide net position.

- S1 -

Cleveland Municipal School District Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)

2005

Net Position Net Investment in Capital Assets Restricted Restricted Debt Service Restricted Capital Projects Restricted Special Revenue Unrestricted Total Net Position

$

117,395,590

$

53,685,274 326,783,809 11,361,537 (47,337,174) 461,889,036

Source: School District Financial Records

- S2 -

2006

$

208,222,499

$

49,134,737 362,464,498 16,028,862 2,036,421 637,887,017

2007

$

261,363,643

$

36,237,294 423,973,593 18,590,876 49,393,549 789,558,955

2008

$

332,124,644

$

33,349,361 313,896,979 34,529,429 74,406,756 788,307,169

2009

$

410,820,839

$

33,857,725 391,466,835 40,215,098 41,835,337 918,195,834

2010

$

500,616,971

$

47,506,378 257,882,844 41,703,464 20,520,336 868,229,993

2011

2012

$

503,951,883

$

48,223,777 260,606,827 77,722,493 58,715,005 949,219,985

$

518,814,295

$

51,217,114 278,969,178 58,944,626 73,262,646 981,207,859

Total Assets and Liabilities $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0

Assets

Liabilities

- S3 -

2013

$

558,674,014

$

42,713,939 184,352,359 47,468,206 113,553,821 946,762,339

2014

$

619,248,160

$

49,735,043 84,864,225 44,308,001 158,282,881 956,438,310

Cleveland Municipal School District Changes in Net Position of Governmental Activities Last Ten Fiscal Years (accrual basis of accounting)

2005 Expenses Governmental Activities: Instruction: Regular Special Vocational Adult/Continuing Other Support Services: Pupils Instructional Staff Board of Education Administration Fiscal Business Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Interest and Fiscal Charges Total Primary Government Expenses Program Revenues Governmental Activities: Charges for Services and Sales Instruction: Regular Special Vocational Adult/Continuing Other Support Services: Pupils Instructional Staff Board of Education Administration Fiscal Business Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instruction Services Extracurricular Activities

$

2006

249,352,851 152,153,082 12,683,615 3,490,435 150

$

2007

316,945,841 143,913,038 11,907,870 2,300,131 12,759,762

$

2008

306,641,274 160,305,162 12,723,093 2,967,373 12,263,429

$

327,247,872 168,823,350 13,985,560 2,833,813 19,765,060

33,877,518 54,824,175 223,199 43,927,480 12,234,280 1,284,442 56,317,807 28,867,256 14,936,994 44,009,082 5,968,627 13,588,410 727,739,403

35,380,163 51,072,946 267,321 41,342,791 9,946,686 942,371 58,569,487 28,965,329 15,969,839 42,532,273 5,814,665 11,647,137 790,277,650

37,100,301 48,124,670 248,637 43,218,261 9,617,654 1,065,128 64,844,985 27,944,135 15,923,177 38,956,223 6,466,969 10,180,816 798,591,287

32,218,673 48,850,968 258,840 46,168,403 11,408,394 1,873,943 109,195,119 27,527,934 15,035,691 42,585,167 6,783,614 9,219,611 883,782,012

0 192,893 0 83,071 0

0 148,405 0 38,252 0

196,057 717,094 0 59,177 0

660,425 238,482 27,430 890 168

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

53,857 50,724 579 95,123 23,294 4,354 104,131 58,433 34,018 7,798 821,166

Source: School District financial records

- S4 -

2009

$

328,162,328 180,413,911 11,895,564 2,856,799 19,497,068

2010

$

380,866,357 189,643,261 11,923,801 3,668,819 9,655,896

2011

$

2012

297,907,426 207,990,072 10,336,437 132,537 6,384,172

$

322,367,731 174,228,202 11,316,290 0 4,493,188

2013

$

367,669,653 172,023,833 12,599,383 112,488 673,778

2014

$

381,411,371 182,682,324 11,404,778 620 1,970,489

27,746,864 57,621,095 284,153 44,605,981 12,212,820 2,645,732 74,505,273 31,991,149 19,272,538 42,225,005 6,910,474 8,078,738 870,925,492

39,107,286 65,429,955 234,344 48,600,081 10,120,397 2,223,407 61,657,748 30,858,435 14,648,056 41,452,383 6,492,522 7,478,002 924,060,750

37,463,820 59,204,651 250,996 43,536,920 15,131,810 1,643,284 63,176,797 28,923,689 12,437,133 42,237,400 6,418,054 9,869,253 843,044,451

36,216,356 50,834,523 285,033 41,533,976 12,498,573 1,700,249 55,146,243 27,896,118 11,966,119 39,718,319 5,857,755 9,640,956 805,699,631

34,197,654 55,202,905 274,588 46,168,870 12,708,747 2,018,076 59,940,850 30,662,826 20,006,680 36,951,908 6,990,941 11,669,533 869,872,713

35,833,670 30,250,022 264,265 43,290,224 12,274,449 1,590,930 62,189,841 56,924,644 17,526,350 35,846,103 6,510,125 93,660 880,063,865

616,265 229,296 19,401 707 4,804

805,242 364,149 29,849 5,916 18,813

2,351,003 976,843 62,210 0 36,692

1,800,754 832,254 61,797 0 28,614

4,192,551 1,621,243 111,542 1,068 4,590

4,170,473 1,533,891 99,620 5 1,307

63,040 45,270 536 113,343 40,664 5,007 96,210 56,888 34,908 5,512 800,606

95,886 67,537 654 105,953 26,169 6,204 167,875 74,134 39,399 7,879 788,285

316,993 154,682 1,788 417,562 258,747 11,703 522,574 175,290 87,927 11,614 653,175

190,315 144,317 1,831 237,566 68,264 10,921 336,066 170,981 75,555 15,927 575,250

457,244 192,966 2,692 547,753 324,446 19,786 656,920 270,047 194,889 11,351 574,128

467,558 56,314 2,311 597,459 323,162 13,915 591,810 319,926 152,101 7,806 618,561 (continued)

- S5 -

Cleveland Municipal School District Changes in Net Assets of Governmental Activities (continued) Last Ten Fiscal Years (accrual basis of accounting)

2005 Operating Grants, Contributions and Interest Instruction: Regular Special Vocational Adult/Continuing Other Support Services: Pupils Instructional Staff Board of Education Administration Fiscal Business Operation and Maintenance of Plant Pupil Transportation Central Operation of Non-Instruction Services Extracurricular Activities Capital Grants and Contributions Instruction: Regular Support Services: Instructional Staff Operation and Maintenance of Plant Central

$

Total Program Revenues Net Expense General Revenues and Other Changes in Net Assets Governmental Activities: Property Taxes Levied For: General Purposes Debt Service Capital Outlay Investment Income Miscellaneous Grants and Entitlements not Restricted to Specific Programs Total Primary Government Change in Net Assets Total Primary Government

2006

71,510,982 49,947,447 968,521 2,215,834 0

$

33,931,074 63,057,863 741,042 2,451,716 11,151,414

2007

$

2008

34,039,005 62,362,875 1,694,687 2,444,889 11,461,176

$

35,546,322 66,638,056 2,533,848 2,617,719 19,133,256

5,702,967 32,431,931 11,126 5,347,769 1,402,369 0 672,986 635,920 1,220,287 37,057,500 849,552

7,803,544 40,672,337 7,701 4,916,688 1,068,558 0 2,547,221 1,294,475 895,218 39,136,205 895,653

10,539,199 27,327,018 12,989 7,231,878 1,314,680 0 7,251,442 1,190,477 578,561 34,663,348 878,738

9,175,181 30,313,516 14,767 4,546,107 1,348,188 17,476 12,818,564 1,601,296 683,303 32,764,919 70,647

109,387,736

119,828,477

89,064,023

2,395,614

14,867 38,370 133

0 682,985 0

0 0 0

0 0 0

319,692,261

331,268,828

293,027,313

224,399,651

$ (408,047,142)

$ (459,008,822)

$ (505,563,974)

$ (659,382,361)

$

$

$

$

193,293,701 29,573,166 2,309,596 7,362,433 2,410,759 330,273,507 565,223,162

$

157,176,020

- S6 -

197,583,328 31,620,440 2,459,275 16,205,770 9,715,420 384,582,569 642,166,802

$

183,157,980

198,996,360 35,760,058 2,477,222 18,843,152 1,665,345 399,493,775 657,235,912

$

151,671,938

185,684,541 33,647,336 2,347,262 18,682,784 7,100,867 410,667,785 658,130,575

$

(1,251,786)

2009

$

2010

37,192,665 62,689,317 1,637,911 2,462,002 18,403,044

$

2011

32,685,231 63,043,009 1,326,967 1,904,193 3,127,296

$

2012

38,093,482 103,872,868 1,446,826 71,032 1,663,788

$

2013

20,734,813 28,181,385 1,572,223 0 49,095

$

2014

5,201,595 43,030,489 1,379,138 510 168,775

$

38,760,754 50,997,326 1,692,844 53 1,809,839

5,916,754 35,440,720 2,849 4,575,772 925,564 18,548 14,781,452 1,093,004 641,824 33,961,591 61,459

5,548,551 42,964,473 1,387 4,916,794 705,052 13,164 2,447,744 894,026 568,623 31,495,919 44,017

6,100,952 39,853,992 1,240 4,190,878 3,198,202 8,117 623,740 3,096,448 299,521 41,054,534 92,068

6,609,256 26,649,396 1,979 2,101,662 764,430 11,804 2,234,494 280,450 151,489 29,413,981 36,928

6,132,756 30,471,914 1,247 3,090,526 717,508 9,162 2,236,816 315,733 99,632 32,517,985 32,198

7,294,674 26,469,136 22,411 7,917,347 1,885,624 134,917 7,388,942 3,482,438 1,592,966 31,407,090 505,410

150,881,349

3,376,765

2,037,682

43,033,556

2,100,511

3,155,969

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

372,818,282

197,667,155

251,744,173

166,377,353

136,689,711

193,473,959

$ (498,107,210)

$ (726,393,595)

$ (591,300,278)

$ (639,322,278)

$ (733,183,002)

$ (686,589,906)

$

$

$

$

$

$

155,294,660 10,941,106 22,122,341 9,507,759 10,669,482 419,460,527 627,995,875

$

129,888,665

156,893,542 16,654,007 17,391,407 5,756,808 11,268,565 468,463,425 676,427,754

$

(49,965,841)

158,760,869 28,724,375 2,097,559 3,535,089 13,723,968 465,448,410 672,290,270

$

80,989,992

155,316,742 28,235,142 2,083,420 1,910,966 18,445,756 465,318,126 671,310,152

$

- S7 -

31,987,874

200,094,021 12,635,634 1,042,267 1,345,163 23,507,563 459,821,084 698,445,732

$

(34,737,270)

235,958,843 30,404,951 2,498,740 2,942,716 11,360,311 413,100,316 696,265,877

$

9,675,971

Cleveland Municipal School District Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2005

General Fund Nonspendable Restricted Committed Unassigned Total General Fund All Other Government Funds Nonspendable Restricted Debt Service Capital Programs Special Revenue Committed Assigned Unassigned Total all Other Governmental Funds Total Governmental Funds

$

2006

702,401 (48,377,637) 4,805,598 22,404,297 (20,465,341)

277,925 34,578,380 131,254,059 0 65,909,495 5,851,848 (2,198,856) 235,672,851 $ 215,207,510

Source: School District financial records Note: The School District implemented GASB 54 in 2011

- S8 -

$

656,976 (21,522,382) 6,467,758 33,183,447 18,785,799

2007

$

683,737 0 7,217,484 48,584,949 56,486,170

2008

$

1,126,828 0 3,158,174 52,570,463 56,855,465

291,769

410,176

517,125

30,376,315 87,359,128 6,951,949 77,386,743 4,227,004 0 206,592,908

14,238,392 125,530,579 7,631,660 64,881,973 4,924,426 0 217,617,206

19,367,096 97,428,288 5,703,271 88,523,867 5,638,179 0 217,177,826

$ 225,378,707

$ 274,103,376

$ 274,033,291

2009

$

598,118 (6,453,783) 919,523 21,682,643 16,746,501

2010

$

1,920,719 (40,964,314) 2,207,974 15,781,618 (21,054,003)

798,579

798,579

19,153,121 61,135,167 19,089,437 101,305,463 6,238,147 0 207,719,914

21,439,876 66,946,176 19,495,855 57,405,892 3,863,098 0 169,949,476

$ 224,466,415

$ 148,895,473

2011

$

2012

3,691,170 0 5,608,988 7,386,402 16,686,560

$

861,912

526,708

20,124,660 126,510,249 (15,924,805) 33,933,454 4,740,443 0 170,245,913 $ 186,932,473

4,920,465 0 7,802,251 2,456,478 15,179,194

21,981,311 59,357,444 51,399,384 80,880,693 4,905,512 (6,600,746) 212,450,306 $ 227,629,500

2013

$

6,535,268 0 9,185,899 27,814,870 43,536,037

2014

$

1,036,595 0 12,144,755 58,129,480 71,310,830

803,066 26,108,634 45,160,957 46,112,591 42,395,381 3,691,706 (19,869,898) 144,402,437 $ 187,938,474

789,880 26,520,740 3,344,098 44,211,582 91,013,238 5,076,873 (51,103,623) 119,852,788 $ 191,163,618

Total General Fund, Fund Balance  $80,000,000  $70,000,000  $60,000,000  $50,000,000  $40,000,000  $30,000,000  $20,000,000  $10,000,000  $‐  $(10,000,000)  $(20,000,000)  $(30,000,000) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

- S9 -

Cleveland Municipal School District Governmental Funds Revenues Last Ten Fiscal Years (modified accrual basis of accounting)

2005

2006

2007

2008

$ 224,900,023 7,362,433 346,739 823,214 0 0 10,368,681 243,801,090

$ 225,725,605 16,205,770 195,468 888,418 0 0 18,124,497 261,139,758

$ 229,456,774 18,843,152 983,938 862,421 0 0 7,042,147 257,188,432

$ 216,291,084 18,682,784 1,373,458 807,414 9,533,478 0 7,100,867 253,789,085

State Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Total State Sources

322,634,276 143,316,706 465,950,982

384,220,944 130,630,795 514,851,739

399,263,033 118,053,159 517,316,192

406,097,141 135,715,773 541,812,914

Federal Sources: Unrestricted Grants-in-Aid Restricted Grants-in-Aid Total Federal Sources

7,639,231 118,920,360 126,559,591

361,625 125,743,351 126,104,976

230,742 130,689,825 130,920,567

4,570,644 127,244,206 131,814,850

$ 836,311,663

$ 902,096,473

$ 905,425,191

$ 927,416,849

General Revenues Local Sources: Taxes Investment Income Tuition and Fees Extracurricular Activities Contributions and Donations (1) Sale of Personal Property Miscellaneous Total Local Sources

Total Revenues

Source: School District financial records Notes: (1) 2008 was the first year the School District reported contributions and donations. Previously reported under miscellaneous revenues.

- S10 -

2009

2010

2011

2012

2013

2014

$ 198,637,233 9,507,759 1,341,693 790,764 7,984,141 0 10,669,482 228,931,072

$ 175,412,408 5,756,808 1,831,628 772,316 6,253,700 0 11,268,565 201,295,425

$ 185,815,163 3,535,089 4,181,794 612,023 8,107,354 152,615 14,816,339 217,220,377

$ 179,685,485 1,910,966 3,999,330 541,229 2,627,175 1,374,307 17,071,449 207,209,941

$ 211,788,636 1,345,163 6,236,352 512,011 4,369,374 4,838,821 15,259,654 244,350,011

$ 242,555,376 2,942,716 5,878,768 567,220 6,156,679 717 13,862,593 271,964,069

415,513,502 135,128,629 550,642,131

466,379,953 54,495,286 520,875,239

458,759,975 39,162,866 497,922,841

462,502,688 31,850,562 494,353,250

457,766,044 47,613,559 505,379,603

405,113,830 123,889,931 529,003,761

3,947,025 131,068,187 135,015,212

2,083,472 160,859,694 162,943,166

2,251,018 170,974,083 173,225,101

3,060,502 149,294,345 152,354,847

2,055,040 109,780,767 111,835,807

7,986,486 102,343,737 110,330,223

$ 914,588,415

$ 885,113,830

$ 888,368,319

$ 853,918,038

$ 861,565,421

$ 911,298,053

- S11 -

Cleveland Municipal School District Governmental Funds Expenditures and Debt Service Ratio Last Ten Fiscal Years (modified accrual basis of accounting)

Expenditures Current: Instruction: Regular Special Vocational Adult/Continuing Other Support Services: Pupils Instructional Staff Board of Education Administration Fiscal Business Operations and Maintenance of Plant Pupil Transportation Central Operation of Non-Instructional Services Extracurricular Activities Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Bond Issuance Costs Total Expenditures Capital Expenditures (included above) Debt Service as a Percentage of Noncapital Expenditures

2005

2006

2007

2008

$ 247,538,531 152,415,325 12,841,844 3,519,447 150

$ 311,511,315 143,898,323 11,934,317 2,321,948 12,496,611

$ 301,277,356 160,202,855 12,718,124 2,968,255 12,218,420

$ 318,032,298 170,005,047 14,091,870 2,851,351 19,859,383

36,034,088 54,943,213 209,576 39,700,442 12,265,464 1,289,034 60,192,807 28,199,461 15,118,320 44,051,523 6,061,353 81,404,824

35,284,327 51,117,118 280,079 39,129,081 9,925,994 983,446 56,628,484 27,392,258 15,972,950 40,693,064 5,823,466 92,090,262

35,214,671 48,104,139 248,240 39,609,348 9,616,962 1,051,879 59,316,050 26,776,217 16,172,708 39,601,592 6,442,131 80,193,958

34,551,766 49,169,705 256,012 46,455,469 11,404,888 1,877,131 60,307,795 26,423,864 15,138,926 42,631,226 6,798,182 73,333,174

28,978,523 13,648,029 0 $ 838,411,954

22,755,277 11,686,956 0 $ 891,925,276

9,100,896 10,866,721 0 $ 871,700,522

24,665,132 9,633,715 0 $ 927,486,934

81,404,824

92,090,262

80,193,958

73,333,174

5.6%

Source: School District financial records

- S12 -

4.3%

2.5%

4.0%

2009

2010

2011

2012

2013

2014

$ 317,468,088 180,320,570 11,903,774 2,856,799 19,463,893

$ 320,913,453 189,382,175 11,906,845 3,665,685 9,233,999

$ 285,176,732 207,710,557 10,325,890 117,389 6,470,346

$ 296,589,788 174,268,968 11,317,046 0 4,565,662

$ 296,652,085 171,815,811 12,554,974 108,929 883,337

$ 328,296,064 182,611,969 12,096,694 620 1,974,637

36,579,743 57,763,047 278,777 43,240,868 12,207,258 2,657,905 64,415,385 30,463,468 18,952,494 41,995,798 6,902,348 98,020,101

38,434,140 65,575,019 237,500 43,344,082 10,093,012 2,230,778 61,633,008 27,703,192 14,731,249 41,262,127 6,493,928 95,529,232

36,624,319 60,166,032 245,987 36,689,828 15,237,357 1,637,398 86,750,620 27,878,194 12,527,955 18,517,941 6,385,611 56,852,634

36,685,082 50,661,878 274,705 32,974,897 12,788,220 1,689,243 55,268,800 27,339,459 12,018,833 37,955,918 5,856,800 25,129,584

36,194,695 53,789,823 273,980 35,343,239 12,622,530 2,013,062 60,109,673 27,477,112 19,762,993 37,885,012 6,979,541 100,952,346

34,740,999 31,412,749 268,543 40,298,245 12,268,155 1,571,515 62,283,307 54,625,249 17,449,971 35,451,831 6,488,287 75,299,430

9,845,919 8,819,056 0 $ 964,155,291

10,193,245 8,122,103 0 $ 960,684,772

24,867,030 10,112,550 36,949 $ 904,331,319

37,540,082 10,357,440 0 $ 833,282,405

2,184,442 11,652,099 364,505 $ 889,620,188

15,524,161 6,482,113 177,858 $ 919,322,397

98,020,101

95,529,232

56,852,634

25,129,584

100,952,346

75,299,430

2.2%

2.1%

4.1%

5.9%

- S13 -

1.8%

2.6%

Cleveland Municipal School District Other Financing Sources and Uses and Net Change in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2005 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Inception of Capital Lease Issuance from the Sale of Bonds Proceeds from the Sale of Notes Payment of Refunded Bond Escrow Agent Premium from Sale of Bonds Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances

$

(2,100,291)

2006

$

0 125,000,000 0 0 3,066,194 3,108,186 (3,108,186) 128,066,194 $ 125,965,903

Source: School District financial records

- S14 -

10,171,197

2007

$

0 0 0 0 0 6,944,394 (6,944,394) 0 $

10,171,197

33,724,669

2008

$

0 0 15,000,000 0 0 39,180,591 (39,180,591) 15,000,000 $

48,724,669

(70,085)

0 0 0 0 0 29,532,247 (29,532,247) 0 $

(70,085)

2009

2010

2011

$ (49,566,876)

$ (75,570,942)

$ (15,963,000)

0 0 0 0 0 3,770,394 (3,770,394) 0

0 0 0 0 0 11,072,036 (11,072,036) 0

0 55,000,000 0 0 0 14,573,314 (15,573,314) 54,000,000

$ (49,566,876)

$ (75,570,942)

$

2012

38,037,000

$

20,635,633

0 20,855,000 0 0 0 15,596,576 (16,390,182) 20,061,394 $

- S15 -

40,697,027

2013

$ (28,054,767)

2014

$

0 45,600,000 0 (63,366,472) 6,130,213 13,469,667 (13,469,667) (11,636,259) $ (39,691,026)

(8,024,344)

17,943,165 10,525,000 0 (16,913,399) 444,722 9,320,558 (10,070,558) 11,249,488 $

3,225,144

Cleveland Municipal School District Assessed and Estimated Actual Value of Taxable Property Last Ten Collection Years (in thousands of dollars)

Real Property Assessed Estimated Value Actual Value

Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$

5,007,377 4,970,503 5,629,680 5,526,506 5,544,198 5,336,350 5,455,841 5,449,321 4,602,210 4,601,349

$

14,306,791 14,201,437 16,084,800 15,790,017 15,840,565 15,246,715 15,588,117 15,569,488 13,149,171 13,146,711

Public Utility Assessed Estimated Value Actual Value $

352,432 316,245 318,454 212,297 222,204 235,305 243,660 247,613 266,558 298,603

$

400,491 359,369 361,879 241,246 252,505 267,392 276,886 281,378 302,907 339,322

Source: Office of the County Auditor, Cuyahoga County, Ohio Real property is reappraised every six years with a State mandated update of the current market value in the third year following each reappraisal. The assessed value of real property (including public utility real property) is 35 percent of estimated true value. Personal property tax is assessed on all tangible personal property used in business in Ohio. The assessed value of public utility personal property ranges from 25 percent of true value for railroad property to 88 percent for electric transmission and distribution property. General business tangible personal property was assessed in previous years at 25 percent for machinery and equipment and 23 percent for inventories. General business tangible personal property tax was being phased out beginning in 2006. The listing percentage was 18.75 percent for 25 percent for 2006, 12.5 percent for 2007, 6.25 percent for 2008 and zero for 2009. The tangible personal property values associated with each year are the values that, when multiplied by the applicable rates, generated the property tax revenue billed in that year. For real property, the amounts generated by multiplying the assessed values by the applicable rebates would be reduced by the 10%, 2 1/2% and homestead exemptions before being billed. Beginning in 2006 collection year, the 10% rollback for commercial/industrial property was eliminated.

- S16 -

Tangible Property Assessed Estimated Value Actual Value $

674,031 679,540 556,633 424,871 221,153 0 0 0 0 0

$

Total Assessed Value

2,930,570 3,624,213 4,453,064 3,398,968 3,538,448 0 0 0 0 0

$

Estimated Actual Value

6,033,840 5,966,288 6,504,767 6,163,674 5,987,555 5,571,655 5,699,501 5,696,934 4,868,768 4,899,952

$

Total Direct Rate

Ratio

17,637,852 18,185,019 20,899,744 19,430,231 19,631,518 15,514,107 15,865,003 15,850,866 13,452,078 13,486,033

34% 33 31 32 30 36 36 36 36 36

64.80 64.80 64.80 64.80 64.80 64.80 64.80 64.80 64.80 79.80

Assessed Value of Taxable Property $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2005

2006

2007

Real Property

2008

2009

Public Utility

2010

2011

2012

Tangible Property

- S17 -

2013

2014

Cleveland Municipal School District Ad Valorem Property Tax Rates - All Direct and Overlapping Governments Last Ten Collection Years (Rate Per $1,000 of Assessed Valuation)

Collection Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

City of Cleveland 12.70 12.70 12.70 12.70 12.70 12.70 12.70 12.70 12.70 12.70

Cuyahoga County 18.30 18.30 18.20 18.20 18.10 18.10 18.40 18.30 18.30 20.03

Cleveland Public Library 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80

General Fund

Cleveland Municipal School District Building Bond Maintenance Retirement

58.20 58.20 58.20 58.20 58.20 58.20 58.20 58.20 73.20 73.20

Source: Cuyahoga County Auditor

Notes: (1) Amount represents the total for a City of Cleveland resident. (2) Certain points of the Villages of Bratenahl, Newburgh Heights and Linndale and the City of Garfield Heights are within the School District and are subject to the School District's tax.

- S18 -

0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10

CMSD Total 64.80 64.80 64.80 64.80 64.80 64.80 64.80 64.80 79.80 79.80

Total (1) 102.60 102.60 102.50 102.50 102.40 102.40 102.70 102.60 117.60 119.33

Village of Bratenahl (2)

Village of Newburgh Heights (2)

14.00 14.10 14.00 14.00 15.50 15.50 16.00 16.00 16.10 16.00

18.50 18.50 19.50 19.50 19.50 19.50 23.10 23.10 23.10 31.80

- S19 -

Village of Linndale (2) 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80

City of Garfield Heights (2) 21.10 21.90 21.90 21.90 23.30 28.70 24.70 24.30 27.00 27.00

Cleveland Municipal School District Principal Property Tax Payers 2013 and 2004 (1)

2013 Approximate Assessed Valuation

2004

Rank

Percent of Total District Assessed Valuation

Rank

Percent of Total District Assessed Valuation

207,043,050

1

4.50%

198,883,610

2

4.32%

Cuyahoga County, Ohio

88,117,300

3

1.91%

City of Cleveland, Ohio

81,985,740

4

1.78%

Key Center Properties LLC

80,559,150

5

1.75%

East Ohio Gas Co.

66,267,070

6

1.44%

Cleveland Financial Associates, LLC

51,485,990

7

1.12%

Higbee Mothership LLC

44,484,100

8

0.97%

Hub North Point Properties LLC

35,123,770

9

0.76%

National City Bank

34,413,150

10

0.75% 138,004,710

1

2.82%

ZML - Cleve Public Sq LLC

47,232,500

2

0.96%

NPW LTD Partnership

35,560,000

3

0.73%

ISG Cleveland Inc.

34,267,430

4

0.70%

Cleveland Clinic Fpundation

29,700,590

5

0.61%

Ohio Bell Telephone

28,464,420

6

0.58%

National City Center LLC

28,000,000

7

0.57%

Bishop James Hickey

22,366,800

8

0.46%

600 Superior Place Partnership

16,275,000

9

0.33%

CG Erieview

10,500,010

10

0.21%

Taxpayer Cleveland Electric Illuminating Co.

$

Cleveland Clinic Foundation

City of Cleveland, Ohio

$

Total Ten Largest Total District Assessed Valuation

Approximate Assessed Valuation

888,362,930 $

19.29%

4,602,210,000

390,371,460 $

Source: City of Cleveland 2013 CAFR, CMSD 2004 CAFR (1) 2014 Tax Collection Year Information Not Available.

- S20 -

4,898,753,740

7.97%

Cleveland Municipal School District Property Tax Levies and Collections Ad Valorem Real and Tangible Personal Property Taxes Last Ten Fiscal Years (in thousands of dollars)

Current Tax Levy Billed (1)

Collection Year (2) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$

Current Collected

261,734 251,189 245,044 228,622 218,073 224,782 225,219 227,945 286,871 294,107

$

Percent Collected (1)

230,272 221,282 212,722 192,688 183,273 181,857 177,622 173,457 236,946 236,058

88.0% 88.1 86.8 84.3 84.0 80.9 78.9 76.1 82.6 80.3

Collected Delinquencies $

17,260 18,022 16,160 18,439 15,452 14,888 14,652 19,090 19,192 19,822

Total Collected $

247,532 239,304 228,882 211,127 198,725 196,745 192,274 192,547 256,138 255,880

Total Collected As Percent Of Current Tax Levy 94.6% 95.3 93.4 92.3 91.1 87.5 85.4 84.5 89.3 87.0

Total Percent Collected  96.0  94.0  92.0  90.0  88.0  86.0  84.0  82.0  80.0  78.0 2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Source: Office of the Auditor, Cuyahoga County, Ohio - Data is presented on a calendar year basis because this is the manner in which the information is maintained by the County Auditor.

Notes: (1) Includes Homestead/Rollback taxes assessed locally, but distributed through the State and reported as Intergovernmental Revenue. (2) Represents collection year.

- S21 -

Cleveland Municipal School District Ratio of Bonded Debt to Personal Income and Debt per Capita Last Ten Fiscal Years

Fiscal Year

Estimated Population (1)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

478,403 444,313 444,313 438,042 433,748 431,369 431,369 396,815 390,928 390,113

General Obligation Bonded Debt General Ratio of General General Obligation Obligation Bonded Obligation Bonded Debt to Estimated Bonded Debt Debt Actual Value per Capita

Estimated Actual Values $ 17,637,852,000 18,185,019,000 20,899,743,000 19,430,231,000 19,631,518,000 15,514,107,000 15,865,004,000 15,850,866,000 13,452,078,000 13,486,033,000

$ 206,497,009 185,023,671 177,255,333 168,976,995 160,598,657 151,950,319 183,101,981 166,883,643 147,445,305 120,820,000

Sources: (1) U.S. Bureau of the Census (2) The personal income can be found on S27

- S22 -

1.17% 1.02 0.85 0.87 0.82 0.98 1.15 1.05 1.10 0.90

432 416 399 386 370 352 424 421 377 310

Other Governmental Activities Debt

Qualified Zone Academy Bonds $ 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000

Notes $

43,736,113 56,571,154 38,490,704 27,767,780 22,007,532 6,215,191 5,388,648 4,518,566 3,602,652 2,638,491

Total Debt

Percentage of Personal Income (2)

$ 277,423,156 267,799,541 240,925,307 220,856,837 205,607,580 180,010,997 209,740,629 192,652,209 172,297,957 161,423,385

4.06% 4.22 3.79 3.53 3.32 2.92 3.24 2.98 2.62 2.44

Capital Lease Obligation $

5,940,034 4,954,716 3,929,270 2,862,062 1,751,391 595,487 0 0 0 16,714,894

Per Capita $

Total Debt

$300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 2005

2006

2007

2008

2009

General Obligation Bonded Debt

- S23 -

2010

2011

2012

Other Governmental Activities Debt

2013

2014

580 603 542 504 474 417 486 485 441 414

Cleveland Municipal School District Legal Debt Margin Information Last Ten Fiscal Years

Legal Debt Margin Calculation for Fiscal Year 2014 Assessed Value $ 4,956,948,660 Debt Limit (9% of assessed value) 446,125,379 Debt Applicable to Limit 107,878,824 Legal Debt Margin $ 338,246,555

Debt Limit Total Net Debt Applicable to Limit Legal Debt Margin

Total Net Debt Applicable to the Limit as a Percentage of Debt Limit

2005

2006

2007

2008

$ 543,045,600

$ 536,965,920

$ 585,429,030

$ 554,730,660

157,165,358

141,812,427

149,897,800

135,715,009

$ 385,880,242

$ 395,153,493

$ 435,531,230

$ 419,015,651

28.94%

26.41%

Source: Office of the County Auditor, Cuyahoga County, Ohio Note: Ohio Bond Law sets a limit of 9% for voted debt and 1/10 of 1% for unvoted debt. Voted debt margins are determined without reference to applicable monies in the School District's Debt Service Fund

- S24 -

25.60%

24.47%

2009

2010

2011

2012

2013

2014

$ 538,879,947

$ 501,448,950

$ 512,955,090

$ 512,724,060

$ 438,189,120

$ 446,125,379

127,899,099

119,367,026

156,124,865

138,566,996

115,251,131

107,878,824

$ 410,980,848

$ 382,081,924

$ 356,830,225

$ 374,157,064

$ 322,937,989

$ 338,246,555

23.73%

23.80%

30.44%

27.03%

- S25 -

26.30%

24.18%

Cleveland Municipal School District Direct and Overlapping Debt Governmental Activities Debt As of June 30, 2014

Amount Applicable to Cleveland Municipal School District

$ 120,820,000

Name of Governmental Unit

Municipality Accessed Value

Accessed Value

General Obligation Debt Outstanding

Percentage Applicable to Cleveland Municipal School District (1)

Direct Debt: Cleveland Municipal School District (2)

$ 4,956,948,660

$ 4,956,948,660

$ 120,820,000

100.00%

Overlapping Debt: City of Cleveland (3)

4,797,974,980

4,956,948,660

346,550,000

96.79

335,425,745

Cuyahoga County (3)

4,956,948,660

27,694,841,450

314,245,000

17.90

56,249,855

88,796,050

4,956,948,660

675,000

1.79

12,083

2,364,530

4,956,948,660

0

0.05

0

Newburgh Heights Village (3)

22,191,050

4,956,948,660

350,000

0.45

1,575

City of Garfield Heights (3)

24,269,910

4,956,948,660

24,318,000

0.49

119,158

Greater Cleveland Regional Transit Authority (3) Total Overlapping Debt

4,956,948,660 14,849,493,840

27,694,841,450 80,174,426,200

116,450,000 802,588,000

17.90

20,844,550 412,652,966

$ 19,806,442,500

$ 85,131,374,860

$ 923,408,000

Village of Bratenahl (3) . Village of Linndale (3)

Total

Source: Office of the County Auditor, Cuyahoga County, Ohio

Notes: (1) Percentages were determined by dividing the assessed valuation of the political subdivision located within the boundaries of the School District by the total assessed valuation of the subdivision. (2) The gross debt outstanding does not include H.B. 264 Energy Conservation Note of $2,638,491 and QZAB debt of $21,250,000. (3) City of Cleveland, Cuyahoga County, Village of Bratenahl, City of Garfield Heights, Village of Lindale Newburgh Heights Village and the Greater Cleveland Regional Transit Authority operate on a calendar year.

- S26 -

$ 533,472,966

Cleveland Municipal School District Demographic and Economic Statistics Last Ten Fiscal Years

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Personal Income (thousands of dollars)

City Population 478,403 444,313 444,313 438,042 433,748 431,369 396,815 396,815 390,928 390,113

$

6,836,857,273 6,349,677,083 6,349,677,083 6,260,058,222 6,198,692,668 6,164,694,379 6,468,878,130 6,468,878,130 6,572,281,536 6,628,800,096

Per Capita Personal Income $

14,291 14,291 14,291 14,291 14,291 14,291 16,302 16,302 16,812 16,992

State Unemployment Rate 6.2% 5.1 6.1 6.4 10.5 10.5 9.3 7.4 7.5 5.5

Source: U.S. Bureau of the Census, Bureau of Economic Analysis and U.S. Department of Labor Statistics.

- S27 -

Cleveland Municipal School District Principal Employers Current Year and Nine Years Ago

2013 Employer Cleveland Clinic Health System University Hospitals U.S. Office of Personnel Management Cuyahoga County Cleveland Metropolitan School District City of Cleveland MetroHealth System KeyCorp Case Western Reserve University Sherwin-Williams Co.

Number of Employees 30,979 12,719 11,939 7,544 6,875 6,825 5,396 4,955 4,543 3,221

2004

Rank

Percentage of Total Employment

1 2 3 4 5 6 7 8 9 10

2.98% 1.23 1.15 0.73 0.66 0.66 0.52 0.48 0.44 0.31

Cleveland Clinic Health System University Hospitals Cleveland Metropolitan School District Cuyahoga County City of Cleveland KeyCorp United States Postal Service MetroHealth System Case Western Reserve University Continental Airlines 94,996

9.15%

Total Nonfarm Employment

1,038,000

Number of Employees

Rank

Percentage of Total Employment

24,406 14,504 10,613 8,837 8,232 6,504 5,508 5,400 5,328 3,105

1 2 3 4 5 6 7 8 9 10

2.28% 1.36 0.99 0.83 0.77 0.48 0.51 0.50 0.50 0.29

92,437

8.64%

1,069,700

Source: Crain's Cleveland Business, 2013 Top Business Lists and 2004 Top Business Lists "Largest Northeast Ohio Employers" "Largest Cuyahoga County Employers". U.S. Department of Labor Note: Total Employment includes Cleveland, Elyria and Mentor * 2012 Employment figures include all of Northeast Ohio, including the following counties: Cuyahoga, Geauga, Lake, Lorain Mahoning, Medina, Portage, Stark, and Summit.

- S28 -

Cleveland Municipal School District Full-Time Equivalent District Employees by Type Last Ten Fiscal Years

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Percentage Change 2005-2014

Educational Staff Regular Education 2,548 Special Education 903 Vocational Education 106 Educational Services 382 Full Time (permanent) Substitute 92 Other Professional - Educational 91 Total Educational 4,122

2,058 1,335 87 386 30 74 3,970

1,943 1,383 83 371 3 19 3,802

2,020 1,250 86 389 2 14 3,761

1,956 1,244 80 378 2 13 3,673

1,945 1,212 76 384 2 10 3,629

2,392 925 83 217 0 46 3,663

1,940 775 0 14 0 27 2,756

1,648 787 0 9 0 27 2,471

1,742 718 0 0 0 35 2,495

-31.63 % -20.49 -100.00 -100.00 0.00 -61.54 -39.47

1 0 71 89 187 70 54 11 9 77 27 52 648

1 0 67 84 139 70 55 1 9 76 22 67 591

8 0 73 91 46 62 57 0 10 73 26 58 504

28 0 71 95 44 61 66 12 9 72 24 70 552

27 0 72 96 33 61 65 13 9 75 25 71 547

64 0 70 92 34 71 63 14 9 74 25 69 585

65 0 72 69 55 69 60 7 9 74 26 96 602

116 148 57 47 224 75 42 8 8 72 25 147 969

124 101 58 32 227 75 33 7 8 71 23 145 904

106 153 52 34 247 70 39 6 8 75 25 135 950

10,500.00 0.00 -26.76 -61.80 32.09 0.00 -27.78 -45.45 -11.11 -2.60 -7.41 159.62 46.60

Support Staff Bookkeeping 12 Clerical Assignment 281 Teaching Aide 633 Other Office/Clerical 49 Attendance Officer 21 Maintenance 71 Custodial 373 Food Service /Dietitian 4 Guard/Watchman 164 Mechanic/ Foreman 27 Vehicle Operating/Dispatch 50 21 Computer Operating/Programmin Total Support 1,706

8 257 624 30 22 66 332 4 196 26 49 13 1,627

5 260 633 37 21 92 333 5 203 26 49 10 1,674

4 259 717 25 19 69 327 5 213 26 47 7 1,718

4 259 734 44 19 33 329 5 324 59 45 7 1,862

3 246 800 21 19 30 320 5 319 57 41 6 1,867

34 275 517 109 19 35 305 4 305 50 46 17 1,716

20 220 496 24 17 31 292 4 212 50 46 25 1,437

21 213 500 20 16 34 279 4 228 47 29 26 1,417

16 203 524 18 16 33 308 5 225 42 31 25 1,446

33.33 -27.76 -17.22 -63.27 -23.81 -53.52 -17.43 25.00 37.20 55.56 -38.00 19.05 -15.24

7 18 0 135 56 151 27 0 156 550

9 19 0 129 60 133 23 0 155 528

11 32 0 135 66 118 22 0 142 526

10 38 0 130 70 124 23 0 139 534

11 35 0 129 79 132 29 10 136 561

11 35 0 123 72 125 29 9 140 544

6 21 6 121 74 51 28 9 48 364

5 20 4 115 74 47 34 9 45 353

5 20 4 104 71 42 28 9 44 327

7 28 8 111 74 84 47 8 44 411

0.00 55.56 0.00 -17.78 32.14 -44.37 74.07 0.00 -71.79 -25.27

7,026

6,716

6,506

6,565

6,643

6,625

6,345

5,515

5,119

5,302

Student Services Curriculum Specialist Paraprofessional Counseling Librarian/Media Remedial Specialist Psychologist Registered Nurse Social Work Physical Therapist Speech/Language Therapist Occ/ Mobility Therapist Other Professional Services Total Student Services

Administrative Staff Administrative Assistant Deputy/Associate Superintendent Director Principal Assistant Principal Supervisor/Manager Coordinator Education Adminstrative Speciali Other Official/Administrator Total administrative

Total Source: District records

- S29 -

-24.54 %

Cleveland Municipal School District Operating Statistics Last Ten Fiscal Years

Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Enrollment 62,542 57,698 52,769 50,078 47,120 46,697 43,363 40,758 38,717 37,967

Cost Per Pupil

Operating Expenditures (1) $ 688,266,686 749,470,503 659,532,746 699,907,987 717,251,299 710,783,125 676,334,027 600,391,312 604,516,648 620,202,126

$

11,005 12,990 12,498 13,976 15,222 15,221 15,597 14,731 15,614 16,335

Source: Ohio Department of Education Notes: (1) Operating expenditures are total expenditures for all governmental funds less debt service,capital outlays, and community school payments. (2) Total Program Expenses for all governmental funds less less Interest and Fiscal Charges and community school payments. (3) Meal percentage includes lunch only.

- S30 -

Percentage Change -1.43% 18.03 (3.78) 11.82 8.91 (0.00) 2.47 (5.55) 5.99 4.62

Cost Per Pupil

Expenses (2) $ 688,037,101 762,708,235 674,827,732 754,615,475 732,627,838 780,525,681 697,047,069 636,194,688 688,253,032 696,276,661

$

11,001 13,219 12,788 15,069 15,548 16,715 16,075 15,609 17,777 18,339

Percentage Change

Teaching Staff

-2.15% 20.16 (3.26) 17.83 3.18 7.50 -3.83 -2.90 13.89 3.16

3,557 3,436 3,502 3,515 3,583 3,554 3,317 2,715 2,853 2,495

- S31 -

PupilTeacher Ratio

Percentage of Students Receiving Free and Reduced Paid Meals (3)

17.6% 16.8 15.1 14.2 13.2 13.1 13.1 15.0 13.6 15.2

85.43% 84.83 84.83 70.34 77.85 77.88 82.01 81.87 100.00 100.00

Cleveland Municipal School District Teacher Base Salaries Last Ten Fiscal Years

Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Minimum Salary $

Statewide Average Salary

Maximum Salary

35,264 34,237 35,264 36,322 37,412 38,534 36,836 36,740 37,412 42,215

Source: Ohio Department of Education American Federation of Teachers, AFL-CIO

- S32 -

$

74,798 72,619 74,798 77,042 79,353 81,734 76,736 77,929 79,353 87,631

$

49,438 50,772 53,536 53,410 54,656 55,958 56,715 56,715 56,307 55,916

Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005 2006 2007 K-8 Schools: A.B. Hart (1932) Square feet 115,452 115,452 115,452 Capacity 975 975 975 Enrollment 867 524 433 Adlai Stevenson (1967) Square feet 41,000 41,000 41,000 Capacity 525 525 525 Enrollment 238 319 326 Alexander G. Bell (1971) Square feet 70,829 70,829 70,829 Capacity 825 825 825 Enrollment 387 452 397 Alexander Hamilton (1) (1928) Square feet 89,195 89,195 89,195 Capacity 575 575 575 Enrollment 648 0 0 Alfred A. Benesch-George Washing Carver Swing Space (1) (1977) Square feet 42,133 42,133 42,133 Capacity 575 575 575 Enrollment 368 0 0 Almira (1916) Square feet 68,933 68,933 68,933 Capacity 650 650 650 Enrollment 625 553 521 Andrew J. Rickoff (2) (1920) Square feet 56,348 N/A N/A Capacity N/A N/A N/A Enrollment 252 N/A N/A Andrew J. Rickoff (2005) Square feet N/A 91,785 91,785 Capacity N/A 725 725 Enrollment N/A 509 570 Anton Grdina (1959) Square feet 75,600 75,600 75,600 Capacity 700 700 700 Enrollment 589 624 576 Anton Grdina (2011) Square feet N/A N/A N/A Capacity N/A N/A N/A Enrollment N/A N/A N/A Artemus Ward (1949) Square feet 35,826 N/A N/A Capacity 450 N/A N/A Enrollment 373 N/A N/A

2008

2009

2010

2011

2012

2013

2014

115,452 975 338

115,452 975 399

115,452 975 308

115,452 975 0

115,452 975 0

115,452 975 0

115,452 975 0

41,000 525 290

41,000 525 368

41,000 525 258

41,000 525 417

41,000 525 370

41,000 525 428

41,000 525 334

70,829 825 384

70,829 825 382

70,829 825 394

70,829 825 0

70,829 825 0

70,829 825 0

70,829 825 0

89,195 575 0

89,195 575 0

89,195 575 0

89,195 575 0

89,195 575 0

89,195 575 0

89,195 575 0

42,133 575 0

42,133 575 400

42,133 575 433

42,133 575 323

42,133 575 0

42,133 575 0

42,133 575 367

68,933 650 466

68,933 650 474

68,933 650 374

68,933 650 386

68,933 650 325

68,933 650 317

68,933 650 335

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

91,785 725 570

91,785 725 544

91,785 725 513

91,785 725 487

91,785 725 525

91,785 725 490

91,785 725 478

75,600 700 522

75,600 700 475

75,600 700 419

67,719 700 330

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

71,280 540 344

71,280 540 342

71,280 540 323

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

- S33 -

Cleveland Municipal School District School Building Information Last Ten Fiscal Years

Artemus Ward (2009) Square feet

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

N/A

N/A

N/A

N/A

64,298

64,298

63,282

63,282

63,282

63,282

Capacity

N/A

N/A

N/A

N/A

450

450

450

450

450

450

Enrollment

N/A

N/A

N/A

N/A

420

475

458

494

514

460

146,209

146,209

146,209

146,209

146,209

146,209

146,209

146,209

146,209

146,209

1,350

1,350

1,350

1,350

1,350

1,350

1,350

1,350

1,350

1,350

428

686

571

491

435

355

355

0

0

0

83,260 800 686

83,260 800 784

83,260 800 738

83,260 800 669

83,260 800 656

83,260 800 640

83,719 800 648

83,719 800 608

83,719 800 548

83,719 800 578

53,700 650 415

53,700 650 385

53,700 650 293

53,700 650 343

53,700 650 289

53,700 650 300

44,110 650 388

44,110 650 347

44,110 650 284

44,110 650 284

28,545 425

28,545 425

28,545 425

28,545 425

28,545 425

28,545 425

28,545 425

28,545 425

28,545 425

28,545 425

328

319

312

304

270

253

0

0

0

0

Audubon (1922) Square feet Capacity Enrollment Benjamin Franklin (1923) Square feet Capacity Enrollment Bolton (1971) Square feet Capacity Enrollment Brooklawn (1957) Square feet Capacity Enrollment Buckeye-Woodland (1975) Square feet

44,800

44,800

44,800

44,800

44,800

44,800

52,493

52,493

52,493

52,493

Capacity

625

625

625

625

625

625

625

625

625

625

Enrollment

429

360

304

260

262

253

319

270

205

228

Buhrer (1969) Square feet

42,086

42,086

42,086

42,086

42,086

42,086

42,086

42,086

42,086

42,086

Capacity

600

600

600

600

600

600

600

600

600

600

Enrollment

475

446

0

0

0

0

0

0

0

0

Square feet

N/A

N/A

N/A

N/A

N/A

52,850

52,850

52,850

52,850

52,850

Capacity

N/A

N/A

N/A

N/A

N/A

350

350

350

350

350

Enrollment

N/A

N/A

N/A

N/A

N/A

333

320

342

356

364

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

114

210

298

366

Buhrer (2009)

Campus International School

Captain Arthur Roth (1965) Square feet

70,016

70,016

70,016

70,016

70,016

70,016

66,397

N/A

N/A

N/A

Capacity

975

975

975

975

975

975

975

N/A

N/A

N/A

Enrollment

345

412

370

315

280

259

287

N/A

N/A

N/A

- S34 -

Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005 Carl & Louis Stokes Central Academy

2006

2007

2008

2009

2010

2011

2012

2013

2014

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

120,451

120,451

120,451

120,451

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

775

775

775

775

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

544

469

399

421

Case (1975) Square feet

69,559

69,559

69,559

69,559

69,559

69,559

57,688

57,688

57,688

57,688

Capacity

800

800

800

800

800

800

800

800

800

800

Enrollment

579

553

481

413

353

412

412

367

320

304

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

50,989

50,989

50,989

50,989

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

450

450

450

450

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

425

406

382

315

Charles Dickens

Charles H. Lake (1961) Square feet

55,823

55,823

55,823

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

675

675

675

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

315

324

289

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

152,607

152,607

152,607

152,607

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

1,400

1,400

1,400

1,400

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

742

472

479

477

33,000

33,000

33,000

33,000

33,000

33,000

33,000

N/A

N/A

N/A

425

425

425

425

425

425

425

N/A

N/A

N/A

0

0

0

146

99

143

0

N/A

N/A

N/A

104,360

104,360

104,360

104,360

104,360

104,360

90,497

90,497

90,497

90,497

1,050

1,050

1,050

1,050

1,050

1,050

1,050

1,050

1,050

1,050

648

417

342

299

316

311

447

502

464

397

Charles A. Mooney

Charles Orr (1955) Square feet Capacity Enrollment Charles W. Elliot (1954) Square feet Capacity Enrollment

Clara Westropp Fundamental Education Center (1967) Square feet Capacity Enrollment

116,246

116,246

116,246

116,246

116,246

116,246

106,582

106,582

106,582

106,582

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

671

712

627

640

580

547

515

449

399

408

Clark (1973) Square feet

59,064

59,064

59,064

59,064

59,064

59,064

56,178

56,178

56,178

56,178

Capacity

525

525

525

525

525

525

525

525

525

525

Enrollment

655

605

577

579

557

584

553

592

623

593

Corlett (1) (1915) Square feet

61,800

61,800

61,800

61,800

61,800

61,800

61,800

61,800

61,800

61,800

Capacity

575

575

575

575

575

575

575

575

575

575

Enrollment

387

0

0

0

0

0

0

0

0

0

- S35 -

Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005 Cranwood-Miles Swing Space (1) (1957) Square feet

2006

2007

2008

2009

2010

2011

2012

2013

2014

50,249

50,249

50,249

50,249

50,249

50,249

50,249

50,249

50,249

50,249

Capacity

675

675

675

675

675

675

675

675

675

675

Enrollment

290

0

0

0

0

300

365

324

0

0

Daniel E. Morgan (1959) Square feet

51,272

51,272

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

825

825

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

438

423

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

66,409

66,409

66,409

66,409

66,409

66,409

66,409

66,409

Capacity

N/A

N/A

480

480

480

480

480

480

480

480

Enrollment

N/A

N/A

430

448

406

355

325

322

302

295

Daniel E. Morgan (2007)

Denison (1972) Square feet

42,714

42,714

42,714

42,714

42,714

42,714

52,351

52,351

52,351

52,351

Capacity

825

825

825

825

825

825

825

825

825

825

Enrollment

726

706

698

713

709

708

597

645

570

465

Dike Montessori-CSA Lower Campus (1971) Square feet

53,300

53,300

53,300

53,300

53,300

53,300

53,300

53,300

53,300

53,300

Capacity

700

700

700

700

700

700

700

700

700

700

Enrollment

298

392

390

362

371

380

0

412

0

0

31,000

31,000

31,000

31,000

31,000

31,000

31,000

31,000

31,000

31,000

400

400

400

400

400

400

400

400

400

400

0

0

0

76

136

173

207

250

274

281

Douglas MacArthur (1) (1967) Square feet Capacity Enrollment East Clark (2) (1894) Square feet

56,755

56,755

56,755

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

575

575

575

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

419

463

387

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

N/A

N/A

N/A

63,281

63,281

63,281

63,281

63,281

Capacity

N/A

N/A

N/A

N/A

N/A

450

450

450

450

450

Enrollment

N/A

N/A

N/A

N/A

N/A

452

389

398

314

309

East Clark (2009)

Emile B. deSauze (1966) Square feet

51,457

51,457

51,457

51,457

51,457

51,457

48,860

48,860

48,860

48,860

Capacity

575

575

575

575

575

575

575

575

575

575

Enrollment

339

407

360

344

304

284

258

0

0

0

Empire Computech (1915) Square feet

75,003

75,003

75,003

75,003

75,003

75,003

75,003

75,003

75,003

75,003

Capacity

900

900

900

900

900

900

900

900

900

900

Enrollment

567

423

361

330

279

236

0

0

0

0

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Euclid Park (1922) Square feet

43,182

43,182

43,182

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

500

500

500

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

289

358

291

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

53,767

53,767

53,767

53,767

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

351

351

351

351

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

321

345

343

364

155,000

155,000

155,000

155,000

155,000

155,000

155,000

155,000

155,000

155,000

1,275

1,275

1,275

1,275

1,275

1,275

1,275

1,275

1,275

1,275

656

0

0

297

520

463

592

544

460

411

Euclid Park (2010)

F. D. Roosevelt (1976) Square feet Capacity Enrollment Forest Hill Parkway (1967) Square feet

51,278

51,278

51,278

51,278

51,278

51,278

51,278

51,278

51,278

51,278

Capacity

450

450

450

450

450

450

450

450

450

450

Enrollment

389

407

380

390

365

276

0

0

0

0

Fullerton (1974) Square feet

36,468

36,468

36,468

36,468

36,468

36,468

36,468

36,468

36,468

36,468

Capacity

500

500

500

500

500

500

500

500

500

500

Enrollment

352

458

401

395

379

372

407

327

300

281

Garfield (2) (1922) Square feet

31,763

31,763

31,763

31,763

31,763

31,763

31,763

31,763

31,763

31,763

Capacity

425

425

425

425

425

425

425

425

425

425

Enrollment

189

0

0

0

0

0

0

0

0

0

Square feet

N/A

N/A

N/A

N/A

N/A

60,777

60,777

60,777

60,777

60,777

Capacity

N/A

N/A

N/A

N/A

N/A

426

426

426

426

426

Enrollment

N/A

N/A

N/A

N/A

N/A

375

425

518

526

500

Garfield (2009)

George Washington Carver (1954) Square feet

53,800

53,800

53,800

53,800

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

475

475

475

475

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

429

516

463

404

N/A

N/A

N/A

N/A

N/A

N/A

George Washington Carver (2010) Square feet

N/A

N/A

N/A

N/A

N/A

N/A

N/A

63,280

63,280

63,280

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

N/A

450

450

450

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

N/A

536

449

356

Giddings (1970) Square feet

53,533

53,533

53,533

53,533

53,533

53,533

49,607

49,607

49,607

49,607

Capacity

550

550

550

550

550

550

550

550

550

550

Enrollment

436

389

302

288

275

275

263

0

0

0

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Cleveland Municipal School District School Building Information Last Ten Fiscal Years

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Gracemount (1947) Square feet

49,922

49,922

49,922

49,922

49,922

49,922

49,922

49,922

49,922

49,922

Capacity

475

475

475

475

475

475

475

475

475

475

Enrollment

629

561

487

432

493

493

0

0

0

0

Hannah Gibbons (1960) Square feet

21,831

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

225

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

223

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

52,953

52,953

52,953

52,953

52,953

52,953

52,953

52,953

Capacity

N/A

N/A

351

351

351

351

351

351

351

351

Enrollment

N/A

N/A

267

246

237

228

226

281

277

254

Hannah Gibbons (2006)

Harvey Rice (2) (1903) Square feet

82,414

82,414

82,414

82,414

82,414

N/A

N/A

N/A

N/A

N/A

Capacity

975

975

975

975

975

N/A

N/A

N/A

N/A

N/A

Enrollment

402

352

317

267

233

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

N/A

N/A

N/A

63,280

63,280

63,280

63,280

63,280

Capacity

N/A

N/A

N/A

N/A

N/A

450

450

450

450

450

Enrollment

N/A

N/A

N/A

N/A

N/A

362

422

446

468

448

Harvey Rice (2009)

H. Barbara Booker (1972) Square feet

53,296

53,296

53,296

53,296

53,296

53,296

53,296

53,296

53,296

53,296

Capacity

875

875

875

875

875

875

875

875

875

875

Enrollment

261

564

497

508

403

416

430

415

417

357

Harry E. Davis (1962) Cleveland School of Arts Swing Space Square feet Capacity Enrollment

115,064

115,064

115,064

115,064

115,064

115,064

115,064

115,064

115,064

115,064

1,250

1,250

1,250

1,250

1,250

1,250

1,250

1,250

1,250

1,250

320

0

0

0

0

595

595

616

541

535

Henry W. Longfellow (1924) Square feet

50,616

50,616

50,616

50,616

50,616

50,616

50,616

50,616

50,616

50,616

Capacity

337

337

337

337

337

337

337

337

337

337

Enrollment

289

362

302

321

238

252

0

0

0

0

Iowa Maple (1951) Square feet

57,842

57,842

57,842

57,842

57,842

57,842

57,842

57,842

57,842

57,842

Capacity

650

650

650

650

650

650

650

650

650

650

Enrollment

360

555

427

368

306

318

336

399

358

310

John D. Rockefeller (1961) Square feet

54,400

54,400

54,400

54,400

54,400

54,400

54,400

54,400

54,400

54,400

Capacity

700

700

700

700

700

700

700

700

700

700

Enrollment

570

434

321

242

236

216

0

0

0

0

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John W. Raper (1962) Square feet

64,556

64,556

64,556

64,556

64,556

64,556

64,556

64,556

64,556

64,556

Capacity

800

800

800

800

800

800

800

800

800

800

Enrollment

361

433

431

444

383

356

0

0

0

0

Joseph F. Landis (1963) Square feet

49,170

49,170

49,170

49,170

49,170

49,170

49,170

N/A

N/A

N/A

Capacity

725

725

725

725

725

725

725

N/A

N/A

N/A

Enrollment

368

431

379

399

341

360

0

N/A

N/A

N/A

126,816

126,816

126,816

126,816

126,816

126,816

127,266

127,266

127,266

127,266

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

889

865

762

791

771

737

654

652

638

676

Joseph M. Gallagher (1976) Square feet Capacity Enrollment Kenneth W. Clement (1) (1976) Square feet

31,400

31,400

31,400

31,400

31,400

31,400

31,400

31,400

31,400

31,400

Capacity

550

550

550

550

550

550

550

550

550

550

Enrollment

207

0

0

100

129

166

168

168

154

158

Kentucky-Paul L. Dunbar Swing Space (1940) Square feet

42,870

42,870

42,870

42,870

42,870

42,870

35,010

35,010

35,010

35,010

Capacity

575

575

575

575

575

575

575

575

575

575

Enrollment

370

106

422

438

437

316

192

158

173

215

Louis Agassiz (1929) Square feet

43,074

43,074

43,074

43,074

43,074

43,074

40,185

40,185

40,185

40,185

Capacity

525

525

525

525

525

525

525

525

525

525

Enrollment

371

375

313

322

338

351

344

338

315

310

Louis Pasteur (1959) Square feet

57,835

57,835

57,835

57,835

57,835

57,835

57,835

57,835

57,835

57,835

Capacity

700

700

700

700

700

700

700

700

700

700

Enrollment

308

478

375

245

0

0

0

0

0

0

Louisa May Alcott (1926) Square feet

31,240

31,240

31,240

31,240

31,240

31,240

26,277

26,277

26,277

26,277

Capacity

300

300

300

300

300

300

300

300

300

300

Enrollment

214

208

230

212

235

226

233

203

238

224

157,009

157,009

157,009

157,009

157,009

157,009

119,639

119,639

119,639

119,639

1,075

1,075

1,075

1,075

1,075

1,075

1,075

1,075

1,075

1,075

730

727

822

872

774

773

796

708

683

621

Luiz Munoz Marin (1976) Square feet Capacity Enrollment

Margaret Spellacy - Ginn Academy (1969) Square feet

116,246

116,246

116,246

116,246

116,246

116,246

106,582

106,582

106,582

106,582

Capacity

900

900

900

900

900

900

900

900

900

900

Enrollment

298

0

0

541

477

272

251

216

203

258

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Marion C. Seltzer (1972) Square feet

46,835

46,835

46,835

46,835

46,835

46,835

46,835

46,835

46,835

46,835

Capacity

675

675

675

675

675

675

675

675

675

675

Enrollment

651

659

609

614

574

585

535

487

432

415

Marion Sterling (1973) Square feet

51,896

51,896

51,896

51,896

51,896

51,896

51,896

51,896

51,896

51,896

Capacity

700

700

700

700

700

700

700

700

700

700

Enrollment

450

507

471

498

483

469

503

454

356

318

Mary B. Martin (2) (1963) Square feet

57,737

57,737

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

825

825

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

297

0

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Mary B. Martin & Early Childhood (2006) Square feet

N/A

N/A

70,048

70,048

70,048

70,048

70,048

70,048

70,048

70,048

Capacity

N/A

N/A

490

490

490

490

490

490

490

490

Enrollment

N/A

N/A

390

340

398

343

321

445

300

369

Mary M. Bethune (2) (1964) Square feet

48,613

48,613

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

450

450

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

328

480

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

68,498

68,498

68,498

68,498

68,731

68,731

68,731

68,731

Capacity

N/A

N/A

500

500

500

500

500

500

500

500

Enrollment

N/A

N/A

417

352

344

349

363

333

342

306

Mary M. Bethune (2006)

McKinley (1922) Square feet

46,724

46,724

46,724

46,724

46,724

46,724

46,724

46,724

46,724

46,724

Capacity

375

375

375

375

375

375

375

375

375

375

Enrollment

440

404

375

343

308

288

304

304

297

266

Square feet

N/A

83,584

83,584

83,584

83,584

83,584

82,160

82,160

82,160

82,160

Capacity

N/A

625

625

625

625

625

625

625

625

625

Enrollment

N/A

501

522

454

475

480

481

464

424

421

Memorial (2005)

Michael R. White (1921) Square feet

64,598

64,598

64,598

64,598

64,598

64,598

64,598

64,598

64,598

64,598

Capacity

825

825

825

825

825

825

825

825

825

825

Enrollment

300

432

368

378

341

323

447

420

382

332

Miles (1912) Square feet

88,876

88,876

88,876

88,876

88,876

88,876

88,876

88,876

88,876

88,876

Capacity

950

950

950

950

950

950

950

950

950

950

Enrollment

483

556

426

394

314

0

0

0

262

269

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Miles Park (2) (1971) Square feet

43,027

43,027

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

500

500

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

421

513

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

92,027

92,027

92,027

92,027

92,029

92,029

92,029

92,029

Capacity

N/A

N/A

650

650

650

650

650

650

650

650

Enrollment

N/A

N/A

461

538

430

497

556

605

543

563

Miles Park (2007)

Moses Cleaveland (1925) Square feet

79,671

79,671

79,671

79,671

79,671

79,671

79,671

79,671

79,671

79,671

Capacity

925

925

925

925

925

925

925

925

925

925

Enrollment

244

0

0

0

0

0

0

0

0

0

Mound (1904) Square feet

38,355

38,355

38,355

38,355

38,355

38,355

36,642

36,642

36,642

36,642

Capacity

500

500

500

500

500

500

500

500

500

500

Enrollment

369

416

348

287

241

234

253

0

0

0

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

N/A

63,280

63,280

63,280

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

N/A

450

450

450

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

N/A

467

461

395

Mound (2011)

Mount Auburn (1) (1922) Square feet

44,320

44,320

44,320

44,320

44,320

44,320

44,320

44,320

44,320

44,320

Capacity

575

575

575

575

575

575

575

575

575

575

Enrollment

264

0

0

0

0

0

0

0

0

0

Nathan Hale (1929) Square feet

106,855

106,855

106,855

106,855

106,855

106,855

106,855

106,855

106,855

106,855

Capacity

725

725

725

725

725

725

725

725

725

725

Enrollment

651

522

442

349

311

298

0

0

0

0

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

56,348

56,348

56,348

56,348

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

400

400

400

400

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

409

436

390

380

48,375

48,375

48,375

48,375

48,375

48,375

46,502

46,502

46,502

46,502

650

650

650

650

650

650

650

650

650

650

0

0

0

345

0

0

356

0

0

0

Nathan Hale (2011)

Nathanial Hawthorne (1917) Square feet Capacity Enrollment Newton D. Baker (1954) Square feet

91,706

91,706

91,706

91,706

91,706

91,706

94,379

94,379

94,379

94,379

Capacity

550

550

550

550

550

550

550

550

550

550

Enrollment

498

505

662

671

567

441

463

366

287

349

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Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Oliver Hazard Perry (1927) Square feet

55,570

55,570

55,570

55,570

55,570

55,570

50,989

50,989

50,989

50,989

Capacity

575

575

575

575

575

575

575

575

575

575

Enrollment

644

564

444

385

409

406

388

331

305

255 66,678

Orchard (1901) Square feet

66,678

66,678

66,678

66,678

66,678

66,678

66,678

66,678

66,678

Capacity

800

800

800

800

800

800

800

800

800

800

Enrollment

460

378

534

576

0

0

0

0

305

301

Patrick Henry (1922) Square feet

130,443

130,443

130,443

130,443

130,443

N/A

N/A

N/A

N/A

N/A

Capacity

975

975

975

975

975

N/A

N/A

N/A

N/A

N/A

Enrollment

738

739

491

410

305

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

N/A

N/A

N/A

63,281

63,287

63,287

63,287

63,287

Capacity

N/A

N/A

N/A

N/A

N/A

450

450

450

450

450

Enrollment

N/A

N/A

N/A

N/A

N/A

309

331

340

355

342

Patrick Henry (2009)

Paul Lawrence Dunbar (1965) Square feet

48,372

48,372

48,372

48,372

48,372

48,372

48,372

48,372

48,372

48,372

Capacity

475

475

475

475

475

475

475

475

475

475

Enrollment

301

255

330

360

228

316

0

0

0

0

Square feet

82,840

82,840

82,840

82,840

82,840

82,840

80,996

80,996

80,996

80,996

Capacity

1,125

1,125

1,125

1,125

1,125

1,125

1,125

1,125

1,125

1,125

668

502

584

483

370

370

441

456

329

290

Paul Revere (1925)

Enrollment Riverside (1935) Square feet

38,836

38,836

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

424

447

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

61,820

61,820

61,820

61,820

61,820

61,820

61,820

61,820

Capacity

N/A

N/A

450

450

450

450

450

450

450

450

Enrollment

N/A

N/A

477

516

545

521

537

465

474

473

Riverside (2005)

Robert Fulton (1929) Square feet

74,121

74,121

74,121

74,121

74,121

74,121

74,121

74,121

74,121

74,121

Capacity

675

675

675

675

675

675

675

675

675

675

Enrollment

500

429

498

386

282

292

292

0

0

0

140,000

140,000

140,000

140,000

140,000

N/A

N/A

N/A

N/A

N/A

1,125

1,125

1,125

1,125

1,125

N/A

N/A

N/A

N/A

N/A

635

698

604

563

503

N/A

N/A

N/A

N/A

N/A

Robert H. Jamison (1966) Square feet Capacity Enrollment

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Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Square feet

N/A

N/A

N/A

N/A

N/A

64,298

65,000

65,000

65,000

65,000

Capacity

N/A

N/A

N/A

N/A

N/A

450

450

450

450

450

Enrollment

N/A

N/A

N/A

N/A

N/A

444

397

400

388

388

Robert H. Jamison (2009)

Robinson G. Jones (2) (1951) Square feet

38,311

38,311

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Capacity

550

550

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Enrollment

438

352

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

N/A

N/A

64,281

64,281

63,281

63,281

63,281

63,281

Capacity

N/A

N/A

N/A

N/A

450

450

450

450

450

450

Enrollment

N/A

N/A

N/A

N/A

361

369

361

397

391

422

Robinson G. Jones (2009)

Scranton (1973) Square feet

52,575

52,575

52,575

52,575

52,575

52,575

51,447

51,447

51,447

51,447

Capacity

625

625

625

625

625

625

625

625

625

625

Enrollment

386

610

538

452

430

465

433

424

421

390

Stephen E. Howe (1) (1964) Square feet

48,613

48,613

48,613

48,613

48,613

48,613

48,613

48,613

48,613

48,613

Capacity

625

625

625

625

625

625

625

625

625

625

Enrollment

358

0

0

351

0

0

0

0

0

0

Sunbeam (1923) Square feet

78,518

78,518

78,518

78,518

78,518

78,518

70,397

70,397

70,397

70,397

Capacity

425

425

425

425

425

425

425

425

425

425

Enrollment

224

272

214

224

170

207

236

225

213

229

133,609

133,609

133,609

133,609

133,609

133,609

133,609

133,609

133,609

133,609

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

845

692

0

0

0

0

0

0

0

0

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

101,591

101,591

101,591

101,591

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

785

785

785

785

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

188

251

294

372

119,508

119,508

119,508

119,508

119,508

119,508

100,396

100,396

100,396

100,396

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

465

472

427

402

377

463

452

518

535

504

Thomas Jefferson (1925) Square feet Capacity Enrollment Thomas Jefferson (2011)

Tremont (1917) Square feet Capacity Enrollment Union (1969) Square feet

49,426

49,426

49,426

49,426

49,426

49,426

49,426

49,426

49,426

49,426

Capacity

550

550

550

550

550

550

550

550

550

550

Enrollment

349

373

327

248

251

220

239

0

0

0

- S43 -

Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Valley View (1) (1951) Square feet

25,882

25,882

25,882

25,882

25,882

25,882

25,882

25,882

25,882

25,882

Capacity

350

350

350

350

350

350

350

350

350

350

Enrollment

128

0

0

74

106

133

169

175

189

172

Wade Park (1975) Square feet

68,600

68,600

68,600

68,600

68,600

N/A

N/A

N/A

N/A

N/A

Capacity

725

725

725

725

725

N/A

N/A

N/A

N/A

N/A

Enrollment

365

540

307

222

177

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

N/A

N/A

N/A

68,600

68,600

68,600

68,600

68,600

Capacity

N/A

N/A

N/A

N/A

N/A

501

501

501

501

501

Enrollment

N/A

N/A

N/A

N/A

N/A

355

372

370

346

331

Wade Park (2009)

Walton (1971) Square feet

52,786

52,786

52,786

52,786

52,786

52,786

46,493

46,493

46,493

46,493

Capacity

700

700

700

700

700

700

700

700

700

700

Enrollment

721

686

697

583

553

577

576

467

370

310

Square feet

N/A

N/A

N/A

75,799

75,799

75,799

75,799

75,799

75,799

75,799

Capacity

N/A

N/A

N/A

570

570

570

570

570

570

570

Enrollment

N/A

N/A

N/A

110

163

242

276

325

314

370

Warner (2007)

Watterson-Lake (1906) Square feet

65,241

65,241

65,241

65,241

65,241

65,241

69,814

69,814

69,814

69,814

Capacity

600

600

600

600

600

600

600

600

600

600

Enrollment

524

471

494

524

533

500

393

377

339

265

Waverly (1976) Square feet

72,603

72,603

72,603

72,603

72,603

72,603

55,666

55,666

55,666

55,666

Capacity

575

575

575

575

575

575

575

575

575

575

Enrollment

419

360

450

458

460

430

383

340

302

278

William Cullen Bryant (1930) Square feet

42,187

42,187

42,187

42,187

42,187

42,187

42,187

42,187

42,187

42,187

Capacity

550

550

550

550

550

550

550

550

550

550

Enrollment

358

470

473

495

427

423

345

364

385

412

William R. Harper (1927) Square feet

50,989

50,989

50,989

50,989

50,989

50,989

50,989

50,989

50,989

50,989

Capacity

575

575

575

575

575

575

575

575

575

575

Enrollment

295

0

0

0

0

0

0

0

0

0

Willow (1964) Square feet

53,914

53,914

53,914

53,914

53,914

53,914

39,867

39,867

39,867

39,867

Capacity

425

425

425

425

425

425

425

425

425

425

Enrollment

274

293

273

240

218

216

234

255

227

266

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Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Woodland Hills (1971) Square feet

49,443

49,443

49,443

49,443

49,443

49,443

49,443

N/A

N/A

N/A

Capacity

600

600

600

600

600

600

600

N/A

N/A

N/A

Enrollment

410

510

393

376

353

300

345

N/A

N/A

N/A

105,192

105,192

105,192

105,192

105,192

105,192

106,863

106,863

106,863

106,863

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

1,100

831

624

558

588

572

596

539

437

442

370 91,290

Wilbur Wright (1929) Square feet Capacity Enrollment Willson (1) (1903) Square feet

91,290

91,290

91,290

91,290

91,290

91,290

91,290

91,290

91,290

Capacity

700

700

700

700

700

700

700

700

700

700

Enrollment

463

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

76,217

76,217

76,217

76,217

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

574

574

574

574

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

385

392

367

329

Willson (2010)

Senior High Schools Carl F. Shuler (1958) Square feet

100,500

100,500

100,500

100,500

100,500

100,500

100,500

100,500

100,500

100,500

Capacity

875

875

875

875

875

875

875

875

875

875

Enrollment

671

450

387

351

363

475

360

313

299

0

Cleveland Learning Center - Halle-Orchard Swing Space (1) (1904) Square feet

41,085

41,085

41,085

41,085

41,085

41,085

49,337

49,337

49,337

49,337

Capacity

500

500

500

500

500

500

500

500

500

500

Enrollment

135

420

359

404

464

344

356

356

305

301

Cleveland School of the Arts (1910) Square feet

90,400

90,400

90,400

90,400

90,400

90,400

90,400

90,400

90,400

90,400

Capacity

850

850

850

850

850

850

850

850

850

850

Enrollment

602

601

602

558

558

0

1,114

0

541

535

Collinwood CompuTech (1924) Square feet

345,203

345,203

345,203

345,203

345,203

345,203

297,759

297,759

297,759

297,759

Capacity

2,700

2,700

2,700

2,700

2,700

2,700

2,700

2,700

2,700

2,700

Enrollment

1,488

1,121

968

962

898

793

712

623

624

591

East High (1975) Square feet

165,711

165,711

165,711

165,711

165,711

165,711

165,711

165,711

165,711

165,711

Capacity

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

Enrollment

1,091

1,008

860

715

701

717

0

0

0

0

East Technical (1972) Square feet

318,600

318,600

318,600

318,600

318,600

318,600

320,370

320,370

320,370

320,370

Capacity

1,775

1,775

1,775

1,775

1,775

1,775

1,775

1,775

1,775

1,775

Enrollment

1,101

1,020

907

783

746

1,171

817

565

655

785 - S45 -

Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005 2006 Garrett Morgan Cleveland School of Science (1940) Square feet

2007

2008

2009

2010

2011

2012

2013

2014

101,900

101,900

101,900

101,900

101,900

101,900

76,835

76,835

76,835

76,835

Capacity

675

675

675

675

675

675

675

675

675

675

Enrollment

388

333

264

227

208

247

240

314

310

297

Glenville (1966) Square feet

248,000

248,000

248,000

248,000

248,000

248,000

207,000

207,000

207,000

207,000

Capacity

2,350

2,350

2,350

2,350

2,350

2,350

2,350

2,350

2,350

2,350

Enrollment

1,698

1,604

1,538

1,340

1,167

963

985

813

716

637

Health Careers Center (1980) Square feet

86,950

86,950

86,950

86,950

86,950

86,950

67,000

67,000

67,000

67,000

Capacity

425

425

425

425

425

425

425

425

425

425

Enrollment

368

365

0

143

196

254

277

264

263

438

James F. Rhodes (1932) Square feet

164,931

164,931

164,931

164,931

164,931

164,931

164,931

164,931

164,931

164,931

Capacity

1,225

1,225

1,225

1,225

1,225

1,225

1,225

1,225

1,225

1,225

Enrollment

1,683

1,553

1,575

1,409

1,360

1,230

1,171

1,195

1,199

1,188

Jane Addams Business Careers (1968) Square feet

214,752

214,752

214,752

214,752

214,752

214,752

157,428

157,428

157,428

157,428

Capacity

975

975

975

975

975

975

975

975

975

975

Enrollment

589

557

472

479

474

518

595

638

294

345

Square feet

N/A

N/A

224,000

224,000

224,000

224,000

222,945

222,945

222,945

222,945

Capacity

N/A

N/A

1,335

1,335

1,335

1,335

1,335

1,335

1,335

1,335

0

0

1,067

1,169

1,140

1,162

1,121

1,109

1,017

1,053

John Adams High (2007)

Enrollment John F. Kennedy (1965) Square feet

264,661

264,661

264,661

264,661

264,661

264,661

252,023

252,023

252,023

252,023

Capacity

2,075

2,075

2,075

2,075

2,075

2,075

2,075

2,075

2,075

2,075

Enrollment

1,823

1,758

1,077

940

978

839

975

804

823

800

Square feet

N/A

N/A

210,353

210,353

210,353

210,353

210,353

210,353

210,353

210,353

Capacity

N/A

N/A

1,232

1,232

1,232

1,232

1,232

1,232

1,232

1,232

Enrollment

N/A

N/A

476

576

673

857

855

835

882

872

John Hay (2006)

John Marshall (1932) Square feet

256,924

256,924

256,924

256,924

256,924

256,924

256,924

256,924

256,924

256,924

Capacity

2,250

2,250

2,250

2,250

2,250

2,250

2,250

2,250

2,250

2,250

Enrollment

1,905

1,788

1,715

1,643

1,668

1,519

1,213

1,039

853

804

Lincoln-West (1970) Square feet

304,645

304,645

304,645

304,645

304,645

304,645

337,548

337,548

337,548

337,548

Capacity

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

1,875

Enrollment

1,552

1,490

1,496

1,369

1,386

1,357

1,301

1,156

1,109

1,031

- S46 -

Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005 Margaret A. Ireland Complex (1962) Square feet Capacity Enrollment

2006

2007

2008

2009

2010

2011

2012

2013

2014

58,000

58,000

58,000

58,000

58,000

58,000

58,000

58,000

58,000

58,000

525

525

525

525

525

525

525

525

525

525

0

0

0

172

156

0

122

0

0

0

173,359

173,359

173,359

173,359

173,359

173,359

179,544

179,544

179,544

179,544

1,175

1,175

1,175

1,175

1,175

1,175

1,175

1,175

1,175

1,175

795

765

677

550

502

233

273

262

0

0

246,282

246,282

246,282

246,282

246,282

246,282

224,329

224,329

224,329

224,329

2,150

2,150

2,150

2,150

2,150

2,150

2,150

2,150

2,150

2,150

558

509

416

468

498

506

510

877

565

883

Martin L. King Jr. (1972) Square feet Capacity Enrollment

Max S. Hayes Vocational-Genesis (1957) Square feet Capacity Enrollment

MC2 Stem Academy @ Nela Park Square feet

N/A

N/A

N/A

N/A

20,000

20,000

20,000

20,000

20,000

20,000

Capacity

N/A

N/A

N/A

N/A

150

150

150

150

150

150

Enrollment

N/A

N/A

N/A

N/A

67

152

214

274

289

326

South (includes Washington Park) (1968) Square feet

292,518

292,518

292,518

292,518

292,518

292,518

292,518

292,518

292,518

292,518

Capacity

1,600

1,600

1,600

1,600

1,600

1,600

1,600

1,600

1,600

1,600

Enrollment

1,429

1,258

1,043

941

880

896

0

0

0

0

SuccessTech Academy Square feet

136,817

136,817

136,817

136,817

136,817

136,817

136,817

136,817

136,817

136,817

Capacity

400

400

400

400

400

400

400

400

400

400

Enrollment

198

253

243

238

243

241

227

232

195

203

Square feet

N/A

N/A

N/A

N/A

N/A

N/A

27,331

27,331

27,331

27,331

Capacity

N/A

N/A

N/A

N/A

N/A

N/A

475

475

475

475

Enrollment

N/A

N/A

N/A

N/A

N/A

N/A

140

146

196

185

Washington Park

Whitney Young (1950) Square feet

121,609

121,609

121,609

121,609

121,609

121,609

100,321

100,321

100,321

100,321

Capacity

725

725

725

725

725

725

725

725

725

725

Enrollment

395

375

434

415

380

339

401

332

294

257

Administrative Buildings Square Feet

8

8

8

8

8

8

8

8

8

7

556,286

556,286

556,286

556,286

556,286

556,286

556,286

556,286

556,286

346,927

Transportation Garages (3) Buses

3

3

3

3

3

3

3

3

3

3

327

311

311

305

305

305

305

305

305

305

- S47 -

Cleveland Municipal School District School Building Information Last Ten Fiscal Years

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Football Fields

4

4

4

4

4

4

4

5

5

4

Soccer Fields

3

3

3

4

4

4

4

6

6

4

Running Tracks

4

4

4

2

2

2

2

4

4

3

Baseball/Softball

0

0

0

0

0

0

0

0

0

0

Swimming Pools

7

7

7

5

5

5

5

3

3

2

Playgrounds

50

50

50

50

50

50

50

50

50

50

Athletics

Source: District Records Ohio Department of Education Notes: (1) Building was permanently inactivated for instructional activity starting in the 2005-2006 school year based on Board of Education resolution in June, 2005. (2) Building was temporarily inactivated for instructional activity starting in the 2005-2006 school year based on Board of Education resolution in June, 2005. (3) Ridge Road Bus Depot was inoperable for the 2005-2006 school year.

- S48 -

Cleveland Municipal School District Eric S. Gordon, Chief Executive Officer John W. Scanlan Chief Financial & Administrative Officer

Dennis Kubick Deputy Chief Financial Officer

Michael R. Bowen Director of Accounting

BOARD OF EDUCATION Denise W. Link Board Chair Louise P. Dempsey Board Vice Chair

Ericka L. Abrams Anne E. Bingham Robert M. Heard, Sr. Willetta A. Milam Shaletha T. Mitchell Stephanie Morales Lisa Thomas, Ph.D.

Ronald M. Berkman, Ph.D. Ex Officio Member Alex Johnson, Ph.D. Ex Officio Member

1111 Superior Avenue E, Suite 1800, Cleveland, OH 44114 216.838.0000 • ClevelandMetroSchools.org The Cleveland Board of Education does not discriminate in educational programs, activities or employment on the basis of race, color, national origin, sex, sexual orientation, religion or disability.

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