THE REPORT, WHICH FOCUSES ON OPERATIONS AND DEVELOPMENT, TRACES THE HISTORY OF DPW COMMUNITY PROGRAMS AND DISCUSSES THE CHANGES WHICH HAVE OCCURRED IN THEIR UNDERLYING ASSUMPTIONS. THE MAJOR SUBSTANTIVE RESEARCH AND EVALUATION COVER CLIENT CHARACTERISTICS AND DISPOSITION, ANALYSIS OF YOUTH PERCEPTION, AN INVESTIGATION OF THE PLACEMENT DECISIONMAKING PROCESS AND FINANCIAL AND COST REPORTING STANDARDS. YOUTHS IN THE DPW RESIDENTIAL GROUP HOMES PERCEIVED THE PROGRAM MORE POSITIVELY THAN DID YOUTHS IN INSTITUTIONAL YOUTH DEVELOPMENT CENTERS, AND INTER-REGIONAL COST COMPARISONS WERE UNCLEAR BECAUSE OF VARYING FINANCIAL REPORTING PROCEDURES. THE REPORT CONCLUDED THAT THE DPW PROGRAMS APPEAR TO BE FUNCTIONING AT A SATISFACTORY LEVEL. INCLUDED IN THE APPENDIX ARE A MANAGEMENT INFORMATION SYSTEM MANUAL AND AN EXPLANATION OF THE METHODOLOGY.