Providing an overview of the educational and fiscal accountability system for community colleges in the state of California, this paper discusses the development of the system and describes the role of the Chancellor's Office (CO) of the California Community Colleges in accountability. Following a review of state and federal programs that include accountability requirements, the role of the CO is described, indicating that it is changing from concern with compliance and regulatory activities towards an accountability structure based on student outcomes. Next, the development of the statewide program is described, highlighting its foundations in a 1991 cost study which described four main obstacles to accountability: great variance in local management information system capabilities, uneven local research competence, local skepticism, and burdensome existing statewide reporting requirements. The components of the CO accountability proposal formulated in response to the cost study are then reviewed, including the compilation of a statewide indicators report, annual in-depth accountability studies, statewide surveys, more effective data collection and dissemination, and the CO's role as a depository/clearinghouse for exemplary models and assistance. Finally, systemwide accountability indicators are presented, including credit and non-credit students, fall 1990-fall 1992; persistence rates, fall 1990-spring 1993; course completion with a "C" or better and with a "D" or better, fall 1990-fall 1992; degree completion, 1990-92; staff diversity, fall 1990-fall 1991; college funding sources, 1989-92; and fiscal stability, 1990-93. (ECC)