Presented is the 1976 annual report of a project to prepare profoundly and severely retarded adults for sheltered employment, thus qualifying them for low-level group home placement. The history of the project is traced and program goals (such as refinement of toileting, dressing, and eating skills) are reported in chapter I. In chapter II, the 26 profoundly retarded clients served are described in terms of sex, IQ, institutional history, parent contact, and use of medication. Discussed in chapter III is the use of the Vocational Behaviors Observation Form in developing effective individual training strategies. In chapter IV on the teaching of benchwork tasks, clients' acquisition of tasks is correlated with demographic variables. Outlined in the final chapter are seven goals and activities (such as development of a training manual) planned for 1977. Among the charts and tables provided are the layout of the training college and demographic characteristics of the clients. (SBH)