WITHIN THE YEAR, THE BUREAU HAS EXPANDED ITS USE OF RESIDENTIAL AND OTHER COMMUNITY BASED PROGRAMS AS A TRANSITIONAL AID FOR PRERELEASEES, AND AS AN ALTERNATIVE TO CONFINEMENT FOR OTHER OFFENDERS. THE FEDERAL PRISON SYSTEM UNDERWENT AN EXTENSIVE REORGANIZATION DESIGNED TO IMPROVE MANAGEMENT EFFICIENCY AND BRING THE DECISIONMAKING FUNCTION CLOSER TO THE INSTITUTIONS. NARRATIVE INFORMATION IS ALSO PRESENTED ON STAFF TRAINING, CASE MANAGEMENT, EDUCATIONAL AND VOCATIONAL TRAINING, AND HEALTH SERVICES FOR INMATES. (AUTHOR ABSTRACT MODIFIED)...KAP