Begun in 1978 with a $5 million appropriation, the SDPP was intended to provide preventive services to youth at risk of becoming involved in the juvenile, social services, or mental health systems. In 1987 this program funded 542 community youth programs at a cost of $14 million. SDPP funds are allocated and administered at both the State and county levels. The audit staff reviewed the formulas used by DFY to allocate funds; conducted file reviews of sample 1986 SDPP programs; surveyed county youth bureaus and program providers throughout the State; and interviewed staff at DFY, selected county youth bureaus, and the Council on Children and Families. Findings indicate the DFY has improved management procedures, but has not been sufficiently diligent in implementing them. Onsite monitoring was the rule upstate but the exception in New York City. Fiscal controls have improved, and a computerized fiscal management system is in place. Evaluation is the program's weakest link. 7 data tables, appended supplementary data.