The New York State Legislature provided $11.2 million to start up, renovate, improve, and/or operate child care centers on campuses of the City University of New York (CUNY) and the State University of New York (SUNY). The 60 child care centers had over 4,500 children enrolled for 1987-88, and 20 centers opened as a direct result of the state grants, while 5 new centers are expected to open in 1988. This audit reviews CUNY and SUNY grant funding to campus child care centers, evaluates adherence to guidelines established for campus child care, and presents information about the funding and operation of the centers. The legislature intends that CUNY/SUNY child care centers operate for the benefit of students with children, but the audit revealed (1) an absence of program guidelines that resulted in funding of services to nonstudents' children; (2) an increased use of grant funds for renovations, acquisition of supplies, and operating expenses; and (3) no express provision for community colleges, resulting in confusion over who falls within the guidelines; and (4) a lack of oversight to ensure that all guidelines are met. Tables and charts are included, and supplementary documentation is appended. (TE)