Aimed at school board members, this publication discusses the critical importance of developing an accountability system for a school district. The first chapter advises board members to balance their spending and resource allocations between equity and effectiveness. The option of greater regulatory flexibility mandates greater board responsibility for designing workable accountability systems geared toward school improvement. Boards should realize the uniqueness of each school district, the importance of setting clear goals and obtaining accurate information, and the close relationship between accountability and educational success. The second chapter introduces and defines accountability basics, such as indicators, assessment, and accountability system elements. The third chapter discusses 1980s attempts to provide indicators of educational progress, from developing "Wall Chart" statistics for each state to proposals for a national testing program. The Council of Chief State School Officers is developing a comprehensive set of indicators comprising school and postschool outcomes, school context, and school policies and practices. Chapter 4 presents sample state accountability systems, highlighting California's School Report Card, Connecticut's Common Core of Learning assessments, and South Carolina's School Incentive Rewards Program. Chapter 5 outlines some local school board accountability efforts in South Carolina, Connecticut, Kentucky, Arizona, and Tennessee. Chapter 6 outlines a process for creating a local accountability system. (9 references) (MLH)