IN 1974, THE IOWA BUREAU OF CRIMINAL INVESTIGATION RECEIVED A LEAA GRANT TO CREATE A SPECIAL FRAUD UNIT. THE GRANT WAS USED TO PROVIDE FUNDS FOR SIX SPECIAL AGENTS, SUPPORTING EQUIPMENT AND SUPPLIES, AND OPERATING EXPENSES. THE EVALUATION OF THE FRAUD UNIT COVERS BOTH MEANS-ORIENTED OBJECTIVES (HOW NEEDS ARE DETERMINED, HOW POLICY, OBJECTIVES, AND PRIORITIES ARE ESTABLISHED, PLANNING AND MANAGEMENT, RELATIONSHIPS WITH OTHER AGENCIES INVOLVED IN FRAUD INVESTIGATION AND PROSECUTION) AND ENDS-ORIENTED OBJECTIVES (HOW EFFECTIVELY THE UNIT COMBATS FRAUD IN IOWA). THE EVALUATION, WHICH COVERS THE UNIT'S FIRST 9 MONTHS OF OPERATIONS, IS FAVORABLE. FRAUD UNIT PERFORMANCE IS DESCRIBED AS EXEMPLARY WITH REGARD TO RECRUITMENT, TRAINING, INVESTIGATIVE AND ANALYTICAL CAPABILITIES, SUPPORT OF PROSECUTORIAL AGENCIES, AND PERFORMANCE AS VERIFIED BY ARREST STATISTICS. PARTICULAR ATTENTION IS DRAWN TO THE QUALITY OF UNIT PERSONNEL. LONG-RANGE CONSIDERATIONS RELATIVE TO ASSESSMENT OF STATEWIDE NEEDS, SPECIFICATION OF POLICY AND OBJECTIVES, AND ORGANIZATON OF RESOURCES ARE POINTED OUT. DETAILED FINDINGS AND RECOMMENDATIONS ARE PRESENTED RELATIVE TO FRAUD UNIT PERFORMANCE, UTILIZATION OF SPECIAL AGENTS, DEVELOPMENT AND ADVANCEMENT OF CAPABILITIES, PUBLIC AND AGENCY AWARENESS, NEEDS ASSESSMENT/POLICY, AND SYSTEM OPERATIONS. SUPPORTING DATA ARE INCLUDED. (LKM)