THE COMPTROLLER GENERAL NOTES FIVE AREAS OF CONCERN: (1) CLASSIFICATION AND COUNSELING, (2) EDUCATION AND TRAINING, (3) TRADITIONAL SERVICES, (4) MANAGEMENT INFORMATION SYSTEMS, AND (5) PROGRAM EFFECTIVENESS. PRESENT PRISON CLASSIFICATION AND COUNSELING PROGRAMS ARE NOT EFFECTIVE BECAUSE THE SCREENING TESTS AND EVALUATIONS USED DO NOT ADEQUATELY IDENTIFY OFFENDERS' NEEDS. IN ADDITION, BOTH CLASSIFICATION TEAMS AND VOCATIONAL PERSONNEL ARE INSUFFICIENTLY KNOWLEDGEABLE IN THE FIELD. IN THE AREA OF EDUCATION AND TRAINING. THERE IS A FEELING THAT OFFENDERS ARE NOT BEING PROPERLY EDUCATED OR TRAINED. IN GENERAL, MOST OF THESE PRISON PROGRAMS LACK STRUCTURE AND UNIFORMITY. OFFENDERS ARE RECEIVING CERTIFICATION WITHOUT ADEQUATE INSTRUCTION. UNSKILLED LABORERS ARE NOT DEVELOPING SKILLS, AND SKILLED WORKERS ARE NOT GETTING HELP IN OBTAINING EMPLOYMENT. THE AREA OF TRANSITIONAL SERVICES IS ALSO A PROBLEM. NECESSARY SOCIAL EDUCATION PROGRAMS HAVE NOT BEEN ESTABLISHED, IN ADDITION, OFFENDERS ARE NOT GETTING ADEQUATE ASSISTANCE IN GAINING EMPLOYMENT. BECAUSE OF INADEQUATE ORGANIZATION AND TRAINING, PRISON MANAGEMENT INFORMATION SYSTEMS ARE NOT FUNCTIONAL. FINALLY, EVALUATIONS MEASURING THE IMPACT OF PRISON PROGRAMS ARE NOT BEING CONDUCTED. SPECIFIC RECOMMENDATIONS FOR EACH OF THESE PROBLEM AREAS ARE PRESENTED. GREATER SURVEILLANCE OF THE FEDERAL VOCATIONAL AND EDUCATIONAL PROGRAMS IS URGED. TABLES ARE INCLUDED THROUGHOUT THE TEXT. APPENDIXES CONTAIN COMMENTS FROM THE U.S. DEPARTMENTS OF HEALTH, EDUCATION, AND WELFARE AND LABOR; AN ANNOTATED LIST OF FEDERAL AGENCIES FUNDING OFFENDER EDUCATION AND TRAINING PROGRAMS; DISCUSSION OF PROGRAMS FUNDED BY THE FEDERAL BUREAU OF PRISONS AND THE CORRECTIONS DEPARTMENTS OF KENTUCKY, MINNESOTA, OHIO, AND TEXAS; AND A U.S. DEPARTMENT OF JUSTICE RESPONSE TO THE GAO ANALYSIS. (AUTHOR ABSTRACT MODIFIED--MLC)