U.S. SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB

(Mark One)

[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of
1934

For the quarterly period year ended August 31, 2000

[  ] Transition report under Section 13 or 15(d) of the Securities Exchange Act
of 1934

For the transition period from       to

Commission file number        0-14401

                                  SANDATA, INC.
           (Name of Small Business Issuer as Specified in Its Charter)

         Delaware                                 11-2841799
(State or Other Jurisdiction of                 (IRS Employer
Incorporation or Organization)                Identification No.)

                 26 Harbor Park Drive, Port Washington, NY 11050
               (Address of Principal Executive Offices) (Zip Code)

                                  516-484-9060
                (Issuer's Telephone Number, Including Area Code)

              (Former Name, Former Address and Former Fiscal Year,
                          if Changed Since Last Report)

         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

Yes        X               No


        APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS
                           DURING THE PAST FIVE YEARS

         Check whether the issuer has filed all  documents and reports  required
to be  filed  by  Section  12,  13 or  15(d)  of  the  Exchange  Act  after  the
distribution of securities under a plan confirmed by a court.

Yes        X               No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

         The number of shares  outstanding  of each of the  issuer's  classes of
common equity, as of October 12, 2000 was 2,506,473 shares.

         Transitional Small Business Disclosure Format  (check one):

Yes                        No       X


<PAGE>
                                      INDEX
                                                                       Page

PART I        -   FINANCIAL INFORMATION

Item 1        -   FINANCIAL STATEMENTS:

                  CONSOLIDATED CONDENSED BALANCE SHEETS
                  at August 31, 2000 (unaudited)and May 31, 2000        3-4

                  UNAUDITED CONSOLIDATED CONDENSED
                  STATEMENTS OF OPERATIONS for the three
                  months ended August 31, 2000 and  August 31, 1999     5

                  UNAUDITED CONSOLIDATED CONDENSED
                  STATEMENTS OF CASH FLOWS for the three
                  months ended August 31, 2000 and August 31, 1999      6

                  NOTES TO CONSOLIDATED CONDENSED
                  FINANCIAL STATEMENTS                                  7-10

Item 2        -   MANAGEMENT'S DISCUSSION AND
                  ANALYSIS OR PLAN OF OPERATION                         11-13

PART II       -   OTHER INFORMATION                                     14

Item 1        -   LEGAL PROCEEDINGS                                     14

Item 2        -   CHANGES IN SECURITIES                                 14

Item 3        -   DEFAULTS UPON SENIOR SECURITIES                       14

Item 4        -   SUBMISSION OF MATTERS TO A VOTE OF SECURITY
                  HOLDERS                                               14

Item 5        -   OTHER INFORMATION                                     14

Item 6        -   EXHIBITS AND REPORTS ON FORM 8-K                      14-18

<PAGE>

<TABLE>



                         SANDATA, INC. AND SUBSIDIARIES

                      CONSOLIDATED CONDENSED BALANCE SHEET

 <S>
                                                                               <C>                  <C>
                                                                                 UNAUDITED          AUDITED
                                                                                August 31,          May 31,
                                                                                   2000              2000

ASSETS:

CURRENT ASSETS
       Cash and cash equivalents                                              $   605,889            $  1,229,718
       Accounts receivable, net of allowance for doubtful
           accounts of $461,000 at August 31, 2000 and
           $448,000 at May 31, 2000                                             2,058,545               2,308,901
       Receivables from affiliates                                                728,217                 405,732
       Inventories                                                                 45,067                  17,165
       Prepaid expenses and other current assets                                  247,920                 413,119
                                                                                ---------               ---------

TOTAL CURRENT ASSETS                                                            3,685,638               4,374,635

FIXED ASSETS, NET                                                               9,158,855               8,911,655

OTHER ASSETS
       Notes receivable                                                           123,189                 126,221
       Cash surrender value of officer's life insurance,
           security deposits and other                                            828,843                 832,988
                                                                                ---------                --------

TOTAL ASSETS                                                                  $13,796,525            $ 14,245,499
                                                                              ===========            ============


            SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
</TABLE>

<PAGE>
<TABLE>

                      CONSOLIDATED CONDENSED BALANCE SHEET
<S>                                                                             <C>                   <C>
                                                                                UNAUDITED             AUDITED
                                                                                August 31,            May 31,
                                                                                  2000                  2000

LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES
       Accounts payable and accrued expenses                                    $ 2,172,567           $ 2,580,143
       Notes payable                                                                100,000                   ---
       Deferred/unearned revenue                                                     31,649                38,848
       Deferred income                                                              304,788               322,678
                                                                                -----------           -----------

TOTAL CURRENT LIABILITIES                                                         2,609,004             2,941,669

LONG TERM DEBT                                                                    2,650,000             2,750,000
DEFERRED INCOME                                                                     244,186               315,253
DEFERRED INCOME TAXES                                                               747,648               702,158
                                                                                -----------             ---------

TOTAL LIABILITIES                                                                 6,250,838             6,709,080
                                                                                -----------             ---------

COMMITMENTS & CONTINGENCIES

SHAREHOLDERS' EQUITY
       Common stock                                                                   2,506                 2,506
       Additional paid in capital                                                 5,803,704             5,803,704
       Retained earnings                                                          3,259,136             3,249,868
       Notes receivable - officers                                               (1,519,659)           (1,519,659)
                                                                                 -----------          ------------

TTOTAL SHAREHOLDERS'EQUITY                                                        7,545,687             7,536,419
                                                                                ------------          -----------

TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY                                       $13,796,525           $14,245,499
                                                                                ===========           ===========





            SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

</TABLE>

<PAGE>
<TABLE>
<S>
                                                                                       <C>                  <C>
                   UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

                                                                                               THREE MONTHS ENDED
                                                                                                   AUGUST 31,
                                                                                            2000                1999
                                                                                            ----                ----

REVENUES:

       Service fees                                                                      $4,429,140          $4,074,124
       Other income                                                                          93,668              88,016
       Interest income                                                                       48,608              40,329
                                                                                        -----------          ----------
                                                                                          4,571,416           4,202,469
                                                                                        -----------          ----------
COSTS AND EXPENSES:
       Operating                                                                         2,617,400            2,593,738
       Selling, general and administrative                                               1,178,530              938,359
       Depreciation and amortization                                                       663,955              572,703
       Interest expense                                                                     51,265               48,120
                                                                                        -----------          ----------

TOTAL COSTS AND EXPENSES                                                                  4,511,150           4,152,920
                                                                                        -----------         -----------
Earnings from operations before income taxes                                                 60,266              49,549

       Income tax expense                                                                    50,998              20,515
                                                                                      -------------         -----------
NET EARNINGS                                                                          $       9,268          $   29,034
                                                                                      =============         ===========

BASIC EARNINGS PER SHARE                                                              $         .00          $      .01
                                                                                      -------------         -----------

DILUTED EARNINGS PER SHARE                                                            $         .00          $      .01
                                                                                      -------------         -----------


            SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

</TABLE>
<PAGE>

<TABLE>
<S>
                                                                                <C>                 <C>
                         SANDATA, INC. AND SUBSIDIARIES

            UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

                                                                                     THREE MONTHS ENDED
                                                                                          AUGUST 31,
                                                                                  2000               1999
                                                                                  ----               ----
Cash flows from operating activities:
Net earnings                                                                    $  9,268             $  29,034
Adjustments to reconcile net earnings to net cash
    provided by (used in) operating activities:
       Depreciation and amortization                                             663,955               572,703
       Gain on the disposal of fixed assets                                        3,893                   ---
       Increase (decrease) in allowance for doubtful accounts                     13,000               (81,235)
       Decrease in deferred income                                                (7,199)              (83,847)
       (Decrease) increase of deferred revenue                                   (88,957)              111,495
       Decrease in operating assets                                              381,830             1,322,307
       Decrease in operating liabilities                                        (407,576)           (1,092,315)
       Increase in deferred income tax                                            45,490                   ---
                                                                                --------            -----------

Net cash provided by operating activities                                        613,704               778,142
                                                                                 -------               -------

Cash flows from investing activities:
       Purchases of fixed assets                                                (915,048)           (1,836,460)
       (Increase) decrease in receivables from affiliates                       (322,485)              439,258
                                                                                ---------           ----------

Net cash used in investing activities                                         (1,237,533)           (1,397,202)
                                                                               ----------           -----------
Cash flows from financing activities:
       Proceeds from note payable                                                100,000                   ---
       Proceeds from line of credit                                                  ---               600,000
       Principal payments on line of credit                                     (100,000)             (700,000)
                                                                               ----------           -----------

Net cash used in financing activities                                                ---              (100,000)
                                                                               ----------           -----------
       Decrease in cash and cash equivalents                                    (623,829)             (719,060)
       Cash and cash equivalents at beginning of period                        1,229,718             1,533,576
                                                                              ----------            -----------
       Cash and cash equivalents at end of period                             $  605,889          $    814,516
                                                                              ==========            ===========


            SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

</TABLE>

<PAGE>

                         SANDATA, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
              ----------------------------------------------------
                                   (Unaudited)


1.       CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

The  Consolidated  Condensed  Balance Sheet at August 31, 2000, the Consolidated
Condensed  Statements of Operations  for the three month period ended August 31,
2000 and 1999 and the  Consolidated  Condensed  Statement  of Cash Flows for the
three month period ended August 31, 2000 and 1999 have been prepared by Sandata,
Inc.  and  Subsidiaries  (the  "Company")  without  audit.  In  the  opinion  of
management,  all adjustments (which include only normal,  recurring adjustments)
necessary to present  fairly the  financial  position at August 31, 2000 and for
all periods presented have been made.

For  information  concerning  the  Company's  significant  accounting  policies,
reference  is made to the  Company's  Annual  Report on Form 10-KSB for the year
ended May 31, 2000.  Results of Operations  for the period ended August 31, 2000
are not necessarily  indicative of the operating  results  expected for the full
year.

2.      NOTES PAYABLE

At August 31,  2000,  the  Company  owed a third  party  $100,000  pursuant to a
promissory note, dated June 9, 2000, made payable by the Company to the order of
such third party in the original amount of $100,000 plus interest at a rate of 9
1/2%; interest on such note is payable quarterly and such note is due on June 9,
2001. The note was subsequently paid in full in September 2000.

3.       RELATED PARTY TRANSACTIONS

The Company entered into an agreement in November, 1996 with an affiliate of the
Company's Chairman of the Board, the Nassau County Industrial Development Agency
("NCIDA") and a bank (the  "Agreement").  In connection with the Agreement,  the
affiliate assumed all of the Company's  obligations under a lease with the NCIDA
and  entered  into a sublease  with the Company  for its  facility.  The Company
conveyed  to the  affiliate  the  right to  become  owner of the  facility  upon
expiration of the lease.  In addition,  pursuant to a sublease,  the Company has
assumed certain  obligations owed by the affiliate to the NCIDA under the lease.
The affiliate has  indemnified  the Company with respect to certain  obligations
relative to the lease and the Agreement.  The Company made rent payments for its
facility  amounting  to $140,900  and $170,190 for the three months ended August
31,  2000 and  1999,  respectively.  The  reduction  is the  result  of a verbal
agreement  between the Company and the  affiliate to reduce the rent $150,000 on
an annual basis  effective June 1, 2000. A written  amendment to the sublease is
being prepared.

The Company makes various lease payments to affiliates of the Company's Chairman
of the Board.  The payments for equipment rental amounted to $98,590 and $98,316
for the three months ended August 31, 2000 and 1999, respectively.

The Company  derives  revenue from National  Medical  Health Card Systems,  Inc.
("Health Card"), a company  affiliated with the Company's Chairman of the Board,
for data base and operating system support,  hardware  leasing,  maintenance and
related  administrative  services.  The  revenues  generated  from  Health  Card
amounted to $597,638 and $444,165 for the three months ended August 31, 2000 and
1999, respectively.  At August 31, 2000, the Company was owed $470,452 by Health
Card, which was paid in full in September 2000.

At August 31,  2000,  the  Company  owed  Health  Card  $500,000  pursuant  to a
promissory note, dated May 31, 2000, made payable by the Company to the order of
Health Card in the original  principal  amount of $500,000  plus interest at the
rate of  9-1/2%,  payable  quarterly.  The note,  which was  originally  due and
payable on June 1, 2001,  was  subsequently  amended to extend  such due date to
September 1, 2001.  At August 31, 2000,  the Company owed interest of $11,875 to
Health Card which has been paid subsequently.

Medical Arts Office  Services,  Inc.  ("MAOS"),  a company  which the  Company's
Chairman  of the  Board is the  sole  shareholder,  provided  the  Company  with
accounting,  bookkeeping  and  paralegal  services.  For the three  months ended
August 31, 2000 and 1999,  the total  payments  made by the Company to MAOS were
$59,434 and $59,034, respectively.

4.       NET EARNINGS PER COMMON SHARE

In 1997, the Financial Accounting Standards Board issued Standard No. 128 ("SFAS
No. 128"),  "Earnings per Share".  SFAS No. 128 replaced  calculation of primary
and fully diluted  earnings per share with basic and diluted earnings per share.
Basic earnings per share has been computed using the weighted  average number of
shares of common stock outstanding. Diluted earnings per share has been computed
using the basic weighted  average shares of common stock issued plus outstanding
stock options.

Basic earnings per share are based on the  weighted-average  number of shares of
common stock outstanding,  which were 2,506,475 at August 31, 2000 and 2,481,481
at August 31, 1999. Diluted earnings per share are based on the weighted-average
number of shares of common stock adjusted for the effects of assumed exercise of
options and warrants  under the treasury  stock  method,  which were as follows:
2,707,617 at August 31, 2000 and 2,491,498 at August 31, 1999.

Options to purchase  717,944  shares of common stock in the  calendar  year 2000
were  outstanding at August 31, 2000 and were not included in the computation of
diluted earnings per share because the exercise price of the options was greater
than the average market price of the common stock for the respective period.

5.       SHAREHOLDERS' EQUITY

The Company has stock  options  outstanding  under three stock  option  plans as
follows:

Employees' Incentive Stock Option Plan (the "1984 Plan")-

At August 31, 2000,  there were 2,536 options  outstanding  under the 1984 Plan.
Options  granted  under the 1984 Plan were  granted at exercise  prices not less
than fair market value on the date of grant.  Options outstanding expire in 2001
and no additional options may be granted under the 1984 Plan.

1995 Stock Option Plan (the "1995 Plan")-

At August 31, 2000, there were 590,500 incentive  options  outstanding under the
1995 Plan, which provides for both incentive and nonqualified  stock options and
reserves  1,000,000 shares of common stock for grant.  Options granted under the
1995 Plan were granted at exercise prices not less than the fair market value at
the date of grant.  All options  outstanding  under the 1995 Plan are  currently
exercisable  at prices  ranging  from  $1.41 to $2.61 per share over a period of
five years from date of grant.

1998 Stock Option Plan (the "1998 Plan")-

At August 31, 2000, there were 921,414 incentive  options  outstanding under the
1998 Plan, which provides for both incentive and nonqualified  stock options and
reserves  1,000,000  shares of common stock for grant.  All options  outstanding
under the 1998 Plan vest over three to six year periods and are  exercisable  at
prices  ranging from $1.31 to $3.00 per share over periods of five and ten years
from date of grant.  At August  31,  2000  there are  269,295  shares  currently
exercisable.

On July 14,  1998,  the  Company's  Chairman  of the  Board,  certain  officers,
directors and, a former director and the spouse of an officer and an employee of
Sandsport  Data  Services,  Inc.  ("Sandsport'),   the  Company's  wholly  owned
subsidiary,  exercised  their  respective  options  and  warrants to purchase an
aggregate  of 921,334  shares of Common  Stock  under the 1998 Plan at  exercise
prices  ranging  from  $1.38  to  $2.61  per  share  for an  aggregate  cost  of
$1,608,861.  Payment  for such  shares was made to the  Company in the amount of
$921  representing  the par value of the  shares,  and a portion  in the form of
non-recourse  promissory  notes due in July  2001,  with  interest  at eight and
one-half percent (8-1/2%) per annum, payable annually, and secured by the number
of shares exercised. The Company has received interest payments on such notes in
the amount of $160,600  during the three months ended August 31, 2000. At August
31, 2000, the outstanding balance on such notes, including principal and accrued
but unpaid interest, was $1,618,948.

Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

RESULTS OF OPERATIONS

Revenues were  $4,571,416 for the three months ended August 31, 2000 as compared
to  $4,202,469  for the three  months  ended  August 31,  1999,  an  increase of
$368,947 or 8.8%.

Service fee revenue for the three months ended August 31, 2000 was $4,429,140 as
compared to  $4,074,124  for the three months ended August 31, 1999, an increase
of $355,016 or 8.7%. The increase is primarily  attributable  to a change in the
pricing  structure in the SHARP and  SanTrax(R)  products and an increase in new
installations in SandataNET(R).

Other income for the three months ended August 31, 2000 was $93,668, as compared
to  $88,016  for the  three  months  ended  August  31,  1999  The  increase  is
attributable to the income recognized on sales/leaseback transactions.

Expenses Related to Services

Operating expenses were $2,617,400 for the three months ended August 31, 2000 as
compared to $2,593,738 for the three months ended August 31, 1999 an increase of
$23,662  or 0.9%.  Costs  associated  with  payroll  and  related  expenses  and
equipment rental payments, were primarily stable during these periods.

Selling,  general and  administrative  expenses  were  $1,178,530  for the three
months ended August 31, 2000, as compared to $938,359 for the three months ended
August 31, 1999,  an increase of $240,171 or 25.6%.  The increase was  primarily
due to increases in  consulting,  payroll and  commission  expenses  relative to
increased efforts to increase sales in the SanTrax and SandataNET product lines.

Depreciation  and  amortization  expense  increased  $91,252 to $663,955 for the
three  months ended August 31, 2000 as compared to $572,703 for the three months
ended August 31, 1999.  The increase was primarily  attributable  to fixed asset
additions,  including  computer  hardware and software  capitalization  costs in
connection with ongoing computer system upgrades.

Interest  expense  was  $51,265 for the three  months  ended  August 31, 2000 as
compared to $48,120 for the three months ended August 31, 1999. The increase was
a result of increased borrowings on the Company's Credit Agreement.

Income Tax Expenses

Income tax expense  for the three  months  ended  August 31, 2000 was $50,998 as
compared to $20,515 for the three months ended August 31, 1999.  The increase is
due to the  tax  treatment  of  software  development  costs,  depreciation  and
amortization,  and revenues  from  sales/leaseback  transactions,  offset by net
operating loss carry forwards.

LIQUIDITY AND CAPITAL RESOURCES

The  Company's  cash  decreased  at August 31,  2000 to  $605,889 as compared to
$1,229,718 at May 31, 2000. The decrease is primarily due to the  acquisition of
fixed assets,  an increase in amounts owed to the Company by  affiliates,  and a
decrease  in  accounts  payable,  slightly  offset by a  reduction  in  accounts
receivable.

The  Company's  receivables  from  affiliates  increased  at August 31,  2000 to
$728,217  as  compared to $405,732  at May 31,  2000.  The  increase  was mainly
attributable  to a  timing  difference  between  the  monthly  invoicing  to  an
affiliate and the receipt of payment, which was later than normal.

The Company's  working  capital  decreased at August 31, 2000 to $1,076,634,  as
compared with $1,432,966 at May 31, 2000. This was due primarily to the decrease
in cash described above.

For the three  months ended August 31,  2000,  the Company  spent  approximately
$911,000 in fixed asset additions,  including (i) computer hardware and software
for upgrades and new  installations  and (ii) software  capitalization  costs in
connection with new product development.  The Company expects the current levels
of capital expenditures to continue.

On July 14,  1998,  the  Company's  Chairman  of the  Board,  certain  officers,
directors and, a former director and the spouse of an officer and an employee of
Sandsport  Data  Services,  Inc.  ("Sandsport'),   the  Company's  wholly  owned
subsidiary,  exercised  their  respective  options  and  warrants to purchase an
aggregate  of 921,334  shares of Common  Stock  under the 1998 Plan at  exercise
prices  ranging  from  $1.38  to  $2.61  per  share  for an  aggregate  cost  of
$1,608,861.  Payment  for such  shares was made to the  Company in the amount of
$921  representing  the par value of the  shares,  and a portion  in the form of
non-recourse  promissory  notes due in July  2001,  with  interest  at eight and
one-half percent (8-1/2%) per annum, payable annually, and secured by the number
of shares exercised. The Company has received interest payments on such notes in
the amount of $160,600  during the three months ended August 31, 2000. At August
31, 2000, the outstanding balance on such notes, including principal and accrued
but unpaid interest, was $1,618,948.

On April 18,  1997,  the  Company's  wholly  owned  subsidiary,  Sandsport  Data
Services,  Inc.  ("Sandsport"),  entered into a revolving  credit agreement (the
"Credit  Agreement")  with a bank (the "Bank") which allows  Sandsport to borrow
amounts up to  $3,000,000.  Interest  accrues on amounts  outstanding  under the
Credit  Agreement at a rate equal to the London  Interbank  Offered Rate plus 2%
and will be paid  quarterly in arrears or, at Sandsport's  option,  interest may
accrue at the Bank's prime rate. The Credit Agreement  required Sandsport to pay
a  commitment  fee in the  amount of  $30,000  and a fee equal to 1/4% per annum
payable  on the  unused  average  daily  balance  of  amounts  under the  Credit
Agreement.  In  addition,  there are other fees and charges  imposed  based upon
Sandsport's  failure to maintain certain minimum balances.  The Credit Agreement
which expired on March 1, 2000 has been amended by the Bank to permit  Sandsport
to borrow amounts up to $4,500,000 until February 14, 2003.  Interest accrues at
the same rate as the  original  Credit  Agreement.  The  indebtedness  under the
Credit   Agreement  is  guaranteed  by  the  Company  and   Sandsport's   sister
subsidiaries  (the "Group").  The collateral for the facility is a first lien on
all equipment owned by members of the Group, as well as a collateral  assignment
of $2,000,000 of life insurance payable on the life of the Company's Chairman of
the Board.  All of the Group's  assets are pledged to the Bank as collateral for
the amounts due under the Credit Agreement. The Group's guaranty to the bank was
modified to conform covenants to comply with those in the Credit Agreement.

In addition, pursuant to the Credit Agreement, the Group is required to maintain
certain  levels of net worth and meet  certain  financial  ratios in addition to
various other  affirmative  and negative  covenants.  At May 31, 2000, the Group
failed to meet the net worth covenant,  and the Bank granted the Group a waiver.
At August 31, 2000,  the  outstanding  balance on the Credit  Agreement with the
Bank was $2,150,000

At August 31,  2000,  the  Company  owed  Health  Card  $500,000  pursuant  to a
promissory note, dated May 31, 2000, made payable by the Company to the order of
Health Card in the original  principal  amount of $500,000  plus interest at the
rate of  9-1/2%,  payable  quarterly.  The note,  which was  originally  due and
payable on June 1, 2001,  was  subsequently  amended to extend  such due date to
September 1, 2001.  At August 31, 2000,  the Company owed interest of $11,875 to
Health Card which has been paid subsequently.

At August 31,  2000,  the  Company  owed a third  party  $100,000  pursuant to a
promissory note, dated June 9, 2000, made payable by the Company to the order of
such third party in the original amount of $100,000 plus interest at a rate of 9
1/2%; interest on such note is payable quarterly and such note is due on June 9,
2001. The note was subsequently paid in full in September 2000.

The Company believes the results of its continued operations,  together with the
available credit line, should be adequate to fund presently  foreseeable working
capital requirements.


<PAGE>

                         SANDATA, INC. AND SUBSIDIARIES

                           PART II - OTHER INFORMATION

Item 1 - LEGAL PROCEEDINGS:

Reference  is made to Form 10-KSB for the fiscal year ended May 31, 2000 "Part I
Item 3 - Legal Proceedings"

Item 2 - CHANGES IN SECURITIES:

During the fiscal quarter ended August 31, 2000, the Company  granted  incentive
stock  options to  employees  under the 1998 Stock  Option Plan (the  "Plan") to
purchase up to 14,248  shares of common stock for $3.00 per share.  Such options
vest over a three year  period  commencing  upon the  completion  of one year of
employment  with the Company and terminate  after five years. At August 31, 2000
an aggregate of 921,414 options have been granted under the Plan.
Item 3  - DEFAULTS UPON SENIOR SECURITIES:

None

Item 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:

None

Item 5 - OTHER INFORMATION:

None
<TABLE>
<S>               <C>                       <C>
Item 6  - EXHIBITS AND REPORTS ON FORM 8-K:

                  3(A)(i)                   Certificate  of   Incorporation   and  Amendments   thereto   including
                                            Certificate  of  Ownership  and Merger (DE) and  Agreement  and Plan of
                                            Merger (1)

                  3(A)(ii)                  Certificate of Amendment to Certificate  of  Incorporation  filed July 27, 1993
                                            (1)

                  3(A)(iii)                 Certificate  of Amendment to  Certificate  of  Incorporation  filed May
                                            26, 1995 (1)

                  3(B)                      By-Laws (1)

                  4.1                       Nassau County  Industrial  Development  Agency  Industrial  Development
                                            Revenue Bonds (1994 Brodsky  Sibling  Realty Inc.  Project)  dated June
                                            1, 1994 (1)

                  4.2                       Revolving  Credit  Agreement  dated as of  April 20, 1995  by and among
                                            Sandsport Data Services, Inc. and Marine Midland Bank (1)

                  4.3                       Nassau County  Industrial  Development  Agency  Industrial  Development
                                            Revenue Bonds (1994 Brodsky  Sibling  Realty Inc.  Project)  Assumption
                                            and Amendment of Certain Agreements dated July 1, 1995 (1)

                  4.4                       Loan  Agreement  dated August 11, 1995 between  Sandata,  Inc. and Long
                                            Island Development Corporation (1)

                  4.5                       "504"  Note  dated  August 11,  1995 from the Long  Island  Development
                                            Corporation to Sandata, Inc. (1)

                  4.6                       Nassau County  Industrial  Development  Agency  Industrial  Development
                                            Revenue Bonds (1994 Brodsky  Sibling  Realty Inc.  Project)  Assumption
                                            and Amendment of Certain Agreements dated November 1, 1996 (3)

                  4.7                       Revolving  Credit  Agreement  dated as of  April 18, 1997  by and among
                                            Sandsport Data Services, Inc. and Marine Midland Bank (3)

                  4.8                       Second Amendment dated as of February 14, 2000 to
                                            Revolving Credit Agreement by and among Sandsport Data
                                            Services, Inc. and HSBC Bank USA (6)

                  4.9                       Letter, dated October 13, 2000, from HSBC Bank USA to Sandsport Data Services, Inc.

                  10.1                      Software License  Agreement and Distribution  Agreement between Sandata
                                            Home Health Systems,  Inc. and Fastrack Healthcare Systems,  Inc. dated
                                            as of June 15, 1995 (1)

                  10.2                      Employees' Incentive Stock Option Plan (1)

                  10.3                      First Amendment to Incentive Stock Option Plan dated April 4, 1989 (1)

                  10.4                      Second    Amendment    to    Incentive    Stock   Option   Plan   dated
                                            December 18, 1990 (1)

                  10.5                      1986 Non-statutory Stock Option Plan (1)

                  10.6                      Amendment to 1986  Non-statutory  Stock Option Plan dated April 4, 1989
                                            (1)

                  10.7                      1995 Stock Option Plan (1)

                  10.8                      1998 Stock Option Plan (5)

                  10.9                      Common Stock Purchase Warrants as issued to Bert E. Brodsky (1)

                  10.10                     Deferred  Compensation  Plan dated  May 1, 1992  between the Registrant
                                            and Bert E. Brodsky (1)

                  10.11                     Form of agreement  between  Sandsport  Data  Services,  Inc. and vendor
                                            agency (2)

                  10.12                     Form of agreement  between  Sandsport  Data  Services,  Inc. and vendor
                                            agency (2)

                  10.13                     Form of Subscription Agreement dated December 23, 1996 (2)

                  10.14                     Form of Subscription Agreement dated September 12, 1996 (2)

                  10.15                     Form of Common Stock Purchase Warrant ($5.00 Exercise Price) (2)

                  10.16                     Form of Common Stock Purchase Warrant ($7.00 Exercise Price) (2)

                  10.17                     Form of Redeemable Common Stock Purchase Warrant (2)

                  10.18                     Employment Agreement dated February 1, 1997 between
                                            the Registrant and Bert E. Brodsky (3)

                  10.19                     Form of Pledge Agreement (4)

                  10.20                     Form of Non-Negotiable Promissory Note (4)

                  10.21                     Stock Option  Agreement  dated December 10, 1998 between the Registrant
                                            and Bert E. Brodsky (6)

                  10.22                     Stock Option Agreement dated February 3, 2000 between the
                                            Registrant and Bert E. Brodsky (6)

                  10.23                     Stock Option Agreement dated April 15, 2000 between the
                                            Registrant and Stephen Davies (6)

                  10.24                     Promissory Note dated May 31, 2000 between National
                                            Medical Health Card Systems, Inc. and the Registrant (6)

                  10.25                     Amended  Promissory  Note dated May 31, 2000 between
                                            National  Medical Health Card Systems,  Inc. and the
                                            Registrant

                  16                        Letter re Change in Certifying Accountant (1)

                  27                        Financial Data Schedule (for electronic filing)
---------------------------
</TABLE>
(1)      The Company hereby  incorporates the footnoted  Exhibit by reference in
         accordance with Rule 12b-32, as such Exhibit was originally filed as an
         Exhibit to the  Company's  Report on Form  10-KSB  for the fiscal  year
         ended May 31, 1995.

(2)      The Company hereby  incorporates the footnoted  Exhibit by reference in
         accordance with Rule 12b-32, as such Exhibit was originally filed as an
         Exhibit to Amendment No. 1 to Form S-3 Registration  Statement as filed
         with the Securities and Exchange Commission on May 27, 1997.

(3)      The Company hereby  incorporates the footnoted  Exhibit by reference in
         accordance with Rule 12b-32, as such Exhibit was originally filed as an
         Exhibit to the  Company's  Report on Form  10-KSB  for the fiscal  year
         ended May 31, 1997.

(4)      The Company hereby  incorporates the footnoted  Exhibit by reference in
         accordance with Rule 12b-32, as such Exhibit was originally filed as an
         Exhibit to the  Company's  Report on Form  10-KSB  for the fiscal  year
         ended May 31, 1998.

(5)      The Company hereby  incorporates the footnoted  Exhibit by reference in
         accordance with Rule 12b-32, as such Exhibit was originally filed as an
         Exhibit to the  Company's  Report on Form  10-KSB  for the fiscal  year
         ended May 31, 1999.

(6)      The Company hereby  incorporates the footnoted  Exhibit by reference in
         accordance with Rule 12b-32, as such Exhibit was originally filed as an
         Exhibit to the  Company's  Report on Form  10-KSB  for the fiscal  year
         ended May 31, 2000.


<PAGE>

                                  Page 19 of 19

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                SANDATA, INC.
                                      -------------------------------
                                                (Registrant)



Date:    October 13, 2000             By:  /s/ Bert E. Brodsky
     ---------------------            ------------------------
                                      Bert E. Brodsky
                                      Chairman of the Board
                                      Principal Executive Officer and
                                      Principal Financial and Accounting Officer