This document contains the second annual report of the operation of the University of South Dakota's Cooperative Education Program (CEP). The objective of CEP is the development of service-learning educational experiences for college students. These experiences are commonly called an internship and are conducted during the student's academic career; are within the student's major field of study; and earn academic credit. The program's 3 major goals are as follows: (1) developing the administrative capacity to conduct an intern program stressing service and learning; (2) creating a focal point for campus-wide activities involving students in community or off-campus programs; and (3) educating all of the participants in the operation of a meaningful service-learning internship program. The service-learning internship give the student an opportunity to apply academic study to an actual working experience; opens up new areas of interest, study, and possible employment for the student; makes the student more attractive because of the internship to a potential employer; and provides potential employers with an opportunity to recognize the worth and value of the individual student and others like him or her. Appendices include a grant application, budget explanations, CEP Advisory Council, Senate Bill 197, and the by-laws of the Advisory Council. (Author/PG)