New York's Special Delinquency Prevention Program (SDPP) was started in 1978 to provide preventive services to youth who most likely might become 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. This audit assesses the Division for Youth's administration of the SDPP from the allocation of funds to the evaluation of programs. The Legislative Commission on Expenditure Review evaluated the formula used by the division to allocate funds, conducted file reviews of sample 1986 SDPP programs, surveyed county youth bureaus and program providers throughout the state, and interviewed staff. The audit disclosed a need for more consistent implementation of improved management procedures, including application review and oversight of operating contracts, as well as clearer program objectives and better evaluation indicators. Onsite monitoring was the rule upstate, but the exception in New York City. Fiscal controls have improved, due to installation of a computerized fiscal management system. The division has failed, however, to assess the success of the programs in preventing delinquency. Tables are appended showing discretionary funding for project years, region by region, along with results of the assessments of SDPP administration. (TE)