This annual report summarizes progress on two aspects of Germanna Community College's (Virginia) Student Outcomes Assessment program: developmental education and transfer student success. The analysis of developmental education shows that a substantial proportion of students benefit from developmental coursework in writing and basic math. High school graduates enroll in developmental courses at rates similar to the student body as a whole. Students who are identified for developmental courses and take them are more likely to complete collegiate courses. However, the analysis indicates that there are unresolved issues, focusing primarily on the placement process. Analysis of transfer student success shows that overall, from 1990-1996, 76% of students who applied were accepted for admission to the 10 public colleges and universities that provided data. More than half of the students who applied were enrolled, and approximately 80% of those who enrolled completed their first year at the transfer institution in good academic standing. Those students who had graduated from Germanna before applying for transfer were even more likely to be successful. The analysis, however, finds that many students applying for admission to senior colleges did not complete Germanna degrees, and many were not enrolled in designated transfer programs. (KP)