On September 1, 1982, PRIDE (a nonprofit corporation) assumed responsibility from the Department of Corrections for managing the State's prison industries program. The current audit found that sales of PRIDE's products and services declined in fiscal year 1991-92 for the first time in its history, thereby impeding PRIDE's ability to work more inmates, thus diminishing its effectiveness in reducing inmate idleness. PRIDE's failure to win competitive bids has contributed to a $1.4 million decline in sales of PRIDE's printed products to State agencies from fiscal year 1990-91 to fiscal year 1992-93. PRIDE's training and postrelease job placement efforts have benefited a number of PRIDE inmate workers. Preliminary data also suggest that such efforts may lead to a reduction in the number of former PRIDE inmates who are recommitted to prison. Due to data limitations, however, further information is needed to determine the extent to which PRIDE's training and job placement programs are helpful in reducing recommitment. The audit recommends that PRIDE expand new business opportunities through alternative funding. Recommendations for the establishment of performance measures are also offered. 11 exhibits and appended supplementary data and information