The problem of full disclosure of the financial operation and position of a school system is discussed in this paper. Techniques described for analyzing revenue and expenditure patterns include percentage changes and index numbers for horizontal analysis and proportions for vertical analysis. Also discussed are how financial reports are affected by the budgetary cycle and the instability of the dollar as a unit of measure. Financial ratios for measuring liquidity and stability are illustrated. Additional techniques are illustrated to show how to "age" payables and receivables and how to estimate the life of inventory. (Author/LD)