This evaluation found that, while MSE operates primarily with inmate labor (employing approximately 5 percent of the inmates at the State's three main correctional institutions) and reduces inmate idleness, the program has failed to reach the potential intended for it under Mississippi law. This inadequacy is due in large measure to DOC's lack of guidance and failure to comply with legal requirements, and with MSE's operational inefficiency and ineffectiveness, as measured by cost controls, sales revenues, cost savings, and purchasing methods. DOC has failed to develop a master plan, create a significant postrelease job placement program, establish clearly defined inmate classification criteria, or provide adequate inmate security. In this audit, PEER recommends improved management strategies for both MSE and DOC. 6 figures and 7 appendixes