This fifth annual report on schools from the North Carolina Education Alliance shows that many school districts in the state made progress in 2001-02. It also shows that many of the failing school systems from 2000-01 were still performing in the failing range again last year. Official results of statewide testing are reported annually in the Department of Public Instruction’s ABCs of Public Education. End-of-grade tests for elementary students and end-of-course tests for high school students are the only exams administered statewide each year. As such, information about public schools is focused on the results of these exams. Grading Our Schools offers a different lens for studying test results and other performance data. As an additional information tool, we hope it will allow parents and taxpayers to better evaluate student performance in North Carolina’s public schools.