This document contains a performance evaluation of the Virginia Community College System (VCCS), based on data collected by each institution and state agencies, field interviews, original surveys of community college students and staff, and contact with industry. Section I reviews the legislature's intent in establishing the VCCS with regard to the types of students to be served, and provides a review of higher education in Virginia and a profile of community college students. Section II evaluates college and program admissions, counseling for student needs, and accessibility. Section III analyzes university parallel, occupational-technical and continuing adult education programs, focusing particularly on scope of programs, enrollments, and costs. Section IV reviews and evaluates special training programs for industry. Section V evaluates college and system-wide planning and management, enrollment forecasting for budget and facilities, and academic management (faculty productivity, staff attitudes, instructional quality). The appendices contain survey data and questionnaires, and an index of key issues. An extensive documented response to the evaluation report by the VCCS and a rejoinder by the Audit and Review Commission is included. (JDS)