The auditors visited 25 of the division's 59 facilities located throughout the State. The audit included determinations of whether the Division for Youth is managing and using its resources economically and efficiently as well as whether the division has complied with laws and regulations concerning matters of economy and efficiency. The audit reviewed the division's historical development; residential facility program staffing, operating costs, and use; and overall program planning and evaluation. The audit concludes that the division could improve the cost-effectiveness of its residential care operations and should take action to control program costs and to promote increased economic and efficient facility operations. It further determined that the division has not implemented uniform staffing patterns at its facilities. Consequently, staffing disparities exist within each level of residential care. The division also has additional underused physical capacity at certain facilities which could be used for more youth placements. Costs per youth were determined to be excessive, i.e., more costly than other States, and recidivism is comparable to other States. The audit recommends that the division regularly evaluate its residential care program and modify the youth case data base system to be more useful. 3 data exhibits.