THE JUVENILE SERVICES ADMINISTRATION, AN AGENCY OF THE MARYLAND DEPARTMENT OF HEALTH AND MENTAL HYGIENE, SERVES APPROXIMATELY 2,000 JUVENILES PER YEAR, OR 700 AT ANY GIVEN TIME, IN COMMUNITY-BASED FACILITIES. TO INSURE THAT QUALITY CARE IS PROVIDED TO THE YOUTH SERVED BY THIS TREATMENT APPROACH, A POLICY WAS ADOPTED TO DEVELOP AN EVALUATION AND MONITORING PROGRAM FOR THESE RESIDENTIAL FACILITIES. THIS IS A SUMMARY OF THE ACTIVITIES INVOLVED IN THE DEVELOPMENT OF THE EVALUATION SYSTEM. THE PRINCIPAL CONCERN IN THE FIRST STAGE OF THE PROJECT WAS TO IDENTIFY AND DEVELOP MEASURES OF PRIMARY PROGRAM OBJECTIVES, AS WELL AS ELEMENTS OF THE VARIOUS TREATMENT PROGRAMS THAT WERE REPRESENTATIVE OF THE MAJORITY OF HOMES. DETAILED INSTRUMENTS WERE THEN DESIGNED TO PROVIDE INDEPTH DESCRIPTIONS OF THE FACILITIES AND PROGRAMS, WITH EMPHASIS UPON DETERMINING THE EXTENT TO WHICH DESIRED PROGRAM OUTCOMES ARE ACHIEVED. USING THESE INSTRUMENTS, DATA WERE THEN COLLECTED FROM GROUP HOME ADMINISTRATORS, STAFF, AND RESIDENTS. FACTOR ANALYSIS PROCEDURES WERE USED TO REDUCE REDUNDANCY IN THE DATA AND TO PROVIDE MEASURES WHICH WERE BOTH VALID AND RELIABLE. FINALLY, THE ANALYSIS PROVIDED INFORMATION AND EVIDENCE AS TO RELATIONSHIPS BETWEEN ORGANIZATIONAL, STRUCTURAL, AND PROGRAMMATIC ELEMENTS AND IMPORTANT OBJECTIVES OF GROUP HOMES AS APPLICABLE TO BOTH RESIDENTS AND STAFF. A SUMMARY OF MAJOR FINDINGS AND IMPLICATIONS DERIVED FROM THIS STAGE OF EVALUATION SYSTEM DEVELOPMENT IS PRESENTED. THE PROCEDURE AND FINDINGS ASSOCIATED WITH DETERMINING THE RELIABILITY AND VALIDITY OF THE INSTRUMENTS DEVELOPED ARE DISCUSSED IN ANOTHER MAJOR SECTION OF THE REPORT. A SERIES OF ORIENTATION WORKSHOPS WAS HELD DURING THE SECOND YEAR OF THE PROJECT; THESE WERE DESIGNED TO FAMILIARIZE GROUP HOME PERSONNEL AND ADMINISTRATORS WITH THE SYSTEM'S ONGOING OPERATION AND THEIR ANTICIPATED ROLES. THE PLANNING AND OUTCOMES OF THE WORKSHOPS ARE REPORTED. IN CONCLUDING THE REPORT, METHODOLOGICAL, PROCEDURAL, AND SUBSTANTIVE HIGHLIGHTS OF THE TWO-YEAR PROJECT ARE CONSIDERED, AND LIMITATIONS AND DIFFICULTIES ENCOUNTERED ARE IDENTIFIED. GRAPHIC DATA AND REFERENCES ARE PROVIDED. (RCB)