This report covers a Federal review of the operation of the ESEA Title I Program in New Jersey, concentrating its local review in Camden. The State educational agency reported that new methods for teaching the disadvantaged had been developed, achievement had improved, and children had developed a feeling that their parents as well as school officials were genuinely interested in their needs. However, the General Accounting Office believes that a substantial part of Camden's program has provided general aid to public and private school systems rather than aid to educationally deprived children, as prescribed in the Act. Corrective recommendations are included in the report. (Author/DM)