This report presents the findings of the formative evaluation of the Understanding the Early Years (UEY) Initiative. The evaluation was conducted to examine issues of implementation and design, early progress in achieving immediate objectives, and issues related to accountability. The evaluation team was also asked to provide preliminary guidance on the design of a summative evaluation of the Initiative. The UEY Initiative uses three data collection methods: the Early Development Instrument (EDI), the Parent Interviews and Direct Assessments of Children Survey (PIDACS), and data collection and analysis for the Community Mapping Report. The formative evaluation found the design of the UEY Initiative to be generally sound. For example, the evidence showed that the UEY model is inclusive, as well as sufficiently flexible to allow for the participation of a broad range of communities. Collaboration, community focus, credibility and communication were cited as key strengths of the UEY design. The evaluation found that the EDI and PIDAC are viewed positively as standardized tools that are recognized nationally. Key strengths of the Community Mapping Report include the ability to provide useful data and to develop local capacity to undertake research. The evaluation found that participants appear to have a clear understanding of their project's immediate and expected results for the UEY Initiative and have made progress in implementing their project. The early evidence suggests that progress has been made towards providing the community with funding support and technical assistance. As well, there is evidence that the UEY communities are forming and strengthening partnerships. There is also evidence of progress in terms of increasing parental and community awareness and knowledge regarding child development. UEY Communities are appended. (Contains 7 tables and 26 footnotes.)