Components of the Proficiency Testing System (PTS) designed for the Central Valley School District, Washington, are described. Components are: (1) progress assessment, consisting of norm referenced tests, writing samples, diagnostic tests, and ability checklists; (2) user assistance, including an objectives manual, inservice workshop, and a recordkeeping system; (3) essential skills, consisting of criterion referenced tests and a remedial instruction program; (4) area competencies, comprised of achievement tests in areas such as science and health, and short remedial courses; (5) survival skills -- test measuring a student's ability to function in modern society; and (6) gifted and talented identification procedures. This system assures compliance with Washington state's Student Learning Objectives Law and extends the Program beyond mandated minimum requirements. A checklist of potential problems in implementing PST is given and includes consideration of transfer students, integration of testing and remediation with special programs, protection of students' legal rights, assurance of the absence of test bias, administration of the test to absent, and physically or emotionally handicapped students, solicitation of parental and community support, determination of the relationship between PTS scores and eligibility for high school diplomas. (MH)