This guide is designed for school principals who bear the responsibility for the successful administration of Virginia's Competency Program. Several aspects of the program are described: legislative background; graduation requirements concerning citizenship and qualifying for further education or work; tests used to assess reading and mathematics skills; scoring procedures; opportunity to repeat tests; and school district versus state responsibilities. Information is included on: criteria which may be used to evaluate students' competency; guidelines for test interpretation; testing procedures for exceptional students; recordkeeping instructions; training topics for staff development programs; tips on insuring curriculum validity; and a list of benefits associated with the program. Suggested student competencies and performance indicators are appended for secondary school mathematics, reading, and citizenship. Other Appendices include a two-page news release. (GDC)