In May 1983 the California State University (CSU) introduced the Entry-Level Mathematics (ELM) examination as part of its basic skills assessment process for first-time freshmen and undergraduate transfers. The exam is intended to provide students and counselors with information on the levels of mathematical competency possessed by entering students. For any student who is not exempt from the testing program, a satisfactory score on the exam is a prerequisite for enrollment in any course which satisfies the quantitative reasoning requirement of the CSU General Education-Breadth program. The ELM exam is a multiple-choice test with 65 questions, of which 60 items are scored. There are approximately 12 questions covering arithmetic, 36 questions in elementary algebra skills, and 12 questions in geometric measurements. This report offers an overview of the first year of the testing program. It provides background on the history, nature, and purpose of the ELM exam generally; reviews procedures and data related to test development, administration, performance, and evaluation; and discusses some of the broader implications of the testing program. Extensive appendices offer more detailed information on issues or data mentioned in the text. (LMO)