This report on child care services is based on: (1) a review of program administration at the central and regional offices of the Social and Rehabilitation Service and the Office of Child Development, and (2) a review of selected child care providers in nine states. The program and fiscal management at each administrative level were evaluated, through available data concerning: (1) the effectiveness of the Title IV-A and IV-C programs in meeting statutory objectives, (2) the extent of compliance with federal, state, and local child care requirements, and (3) the procedures for payments to families and child care providers. Findings reveal many program inadequacies and a need for (1) closer monitoring of compliance with the health and safety and child/staff ratio provisions of the federal, state, and local child care requirements, and (2) better regulation enforcement procedures. Appendixes contain tables and correspondence. (CS)