This report reviews Federal funds awarded to VisionQuest National, Ltd., a profit-making organization that provides treatment programs for troubled youth. VisionQuest was one of several organizations selected in the early 1980s to assist the Federal government with the influx of Cuban refugees by providing services to adolescents and young adults who had been institutionalized in Cuba for mental illness and/or criminal offenses. In the past five years, most of VisionQuest's funds have been awarded through a cooperative agreement with the Refugee Mental Health Program (RMHP), operated by the National Institute of Mental Health (NIMH). Federal funds awarded--by NIMH and the Community Relations Service in the Department of Justice--from July 1981 to March 1988 totalled about $18.8 million. During that period, 245 Cubans participated in VisionQuest programs. There were deficiencies in NIMH's administration of the VisionQuest program. NIMH did not carry out its overall administrative and monitoring responsibilities, such as enforcing the requirement that VisionQuest arrange for independent audits of its Federal projects at least every two years and submit financial status reports on time. Also, NIMH did not maintain much of the required documentation concerning the award of Federal funds to VisionQuest. Recommendations are offered. Data are presented on four tables. Appendices present comments from the Department of Health and Human Services, and list the major contributors to the report. (BJV)