Standardized and teacher-constructed proficiency exams are used for student placement, assessment, and as a diagnostic tool. With the encouragement of the Ministry of Education, many universities in Taiwan are now requiring students to attain certain scores on a language proficiency test such as the General English Proficiency Test (GEPT) or the Test of English as a Foreign Language (TOFEL) in order to graduate. However, there are few models for educational institutions to follow when creating their own language proficiency exams. The purpose of this paper is to present the procedures a university followed to create a language proficiency exam with high reliability, appropriate validity and strong correlation to the High-Intermediate GEPT. The paper includes the steps that were used to estimate reliability and determine validity. Each of the three sections (reading, listening, and grammar) of the exam is outlined and the paper presents the results of a cross-comparison correlation study of the scores of 359 students who took both the High-Intermediate GEPT and university-created proficiency exam. It is hoped that this paper will serve as a model for other schools that want to create their own language proficiency exams.