To review tuition procedures for nonresident students of Montgomery County (Maryland) Public Schools, this report evaluates policies and regulations and offers recommendations for improvement. An introductory chapter sets forth the scope of review by the internal audit staff. Review involved analysis of requests for tuition waivers and waiver request files, financial records on tuition collections, pupil enrollment records, and selected student files. The audit staff discussed issues with county officials, interviewed school officials, and reviewed tuition policies in adjacent counties. Findings, conclusions, and recommendations consider the three criteria of residency, guardianship, and student crisis in chapters 3, 4, and 5. In chapter 6, issues are identified in relation to international students' visa status. School procedures that identify nonresident students are enumerated in chapter 7. Chapter 8 describes the collection of nonresident tuition, which highlights the need for modifying program procedures, as illustrated in chapter 9. Additional policy questions outside the audit's scope, but requiring consideration by the superintendent and board of education, are discussed in chapter 10. Chapter 11 summarizes the report's recommendations on policy and administration. Eight appendices present such data tabulations as policy on nonresident tuition payments by location for 1985-86, and international student enrollment. (CJH)