ESTABLISHED UNDER COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OF 1973, THE NEW YORK PROGRAM WAS INTENDED TO ENHANCE THE FUTURE EMPLOYABILITY OF ECONOMICALLY DISADVANTAGED YOUTH BY PROVIDING THEM WITH USEFUL WORK EXPERIENCE. THE PROGRAM WAS FUNDED TO EMPLOY ABOUT 70,000 CITY YOUTH FOR 7 WEEKS THROUGH PROJECTS OPERATED BY 138 PRIVATE AND PUBLIC NONPROFIT AGENCIES. PROGRAM OPERATIONS AND ADMINISTRATION WERE REVIEWED TO DETERMINE IF OBJECTIVES WERE BEING MET. SIX OF THE LARGE JOB PROJECTS WERE REVIEWED. RESULTS OF THE REVIEW INDICATE THAT INADEQUATE PLANNING RESULTED IN AN INSUFFICIENT NUMBER OF PRODUCTIVE JOBS AND A LACK OF CONTROL BY THE CITY OVER PROGRAM OPERATIONS AND THE USE OF FEDERAL FUNDS. OTHER PROBLEMS INCLUDE FUNDING OF PROJECT SPONSORS FROM PREVIOUS YEARS WITH LITTLE CONSIDERATION FOR THEIR PAST PERFORMANCE, INADEQUATE METHODS FOR REGISTERING YOUTH, AND INADEQUATE TRAINING OF MONITORS. FOR FUTURE SUMMER YOUTH EMPLOYMENT PROGRAMS IN NEW YORK, GAO RECOMMENDS THAT THE SECRETARY OF LABOR SET FIRM PLANNING DEADLINES TO BE CERTAIN THAT THE EVOLVING PROGRAM IS DESIGNED TO MEET PROGRAM OBJECTIVES, REQUIRE THAT ALL SPONSORS' SELECTIONS ARE BASED ON THE MERITS OF PROPOSALS AND THE EFFECTIVENESS OF PAST PERFORMANCE, WORK WITH THE CITY TO DEVELOP A BETTER METHOD OF REGISTRATION, REQUIRE THE CITY TO STRENGTHEN ITS MONITORING PROCEDURES, AND REQUIRE EFFECTIVE COORDINATION BETWEEN THE SUMMER JOBS PROGRAM AND THE FEDERAL SUMMER FEEDING PROGRAM. THE CITY CONCURRED WITH THE BASIC FINDINGS OF THE REPORT. (AUTHOR ABSTRACT MODIFIED--RCB)