Designed for use by government or voluntary agencies providing residential group care for children, the manual presents guidelines for initial review and year end interpretation of agency operations along with three worksheets for agency expenses. Additional worksheets and guidelines are included for parent organization expenses and evaluation of donated goods and services; also included are five exhibits and an illustration of a cost analysis report. Appendixes cover the following: analysis of operations after completion of the cost report; time allocation methods, including an illustration of a time study kit and guidelines for selecting random time study days; the multiservice agency, including three worksheets; and definitions of institution functions and staff assignments. A glossary and index are supplied. (JD)