A reference manual on financial activities of a college or university and the interactive role of the governing board is presented for board members and institutional officers who provide information to the board. Financial data related to a fictitious hybrid university are included. After identifying three broad kinds of financial information (routine and periodic financial reports, presentations requiring board discussion, and background reports), the following concerns are addressed: the college's overall condition and institutional direction, and external influences. Potential sources of funds and policy issues are considered, along with planning and budgeting concepts needed for a financial strategy. In addition, financial policy issues are discussed concerning faculty and staff, purchasing, maintenance of capital assets, energy, long-term and working capital, fund accounting, and implementing a reporting system. Questions concerning each topic are included. The following types of reports are covered: annual state of the institution, long-range plans and budgets, operating reports, results of operations, and external auditor's report. Sample financial statements, a glossary, and a 36-item bibliography are included. (SW)