In March 1988, the Office of the Legislative Auditor for the State of Minnesota conducted a program evaluation and financial audit of physical plant operations at the University of Minnesota's Twin Cities campus. The auditors examined the physical plant's management, financial, and personnel controls and the effectiveness and efficiency of maintenance, repair, and custodial operations. This document comprises the resulting report to the Legislative Audit Commission. After an executive summary and an introduction, the report consists of six chapters: (1) background, including organization, staffing, and general financial information; (2) financial management, including funding and budgetary philosophy, operating budget, rates charged for services, and other financial concerns; (3) overall measures of organizational effectiveness, including department organization, internal communication, employee satisfaction, external relationships, achievement of objectives, and recommendations; (4) productivity and cost-effectiveness of shops, including scheduling, staffing and work rules, preventive maintenance, transportation, work quality, and recommendations; (5) custodial and grounds maintenance operations; and (6) related issues, including the used equipment purchase program, special personnel issues, and remodeling. Appended are results of a survey of physical plant employees and samples of work reviewed by technical consultants. Numerous tables and figures are included. (TE)