The most difficult problem in the financial management of a program of Public Service Employment (or subsidized work-training experience) is the over-obligation of funds. Some training slots are never filled, some trainees drop out early from the program, and others complete their training early. All of these factors "free" funds which must be promptly identified if they are to be put to alternative uses. The best way to avoid this problem is to use a detailed and flexible working budget which is kept up to date by timely and systematic comparison between actual and projected expenditures. The central office should use actual rather than anticipated outlays as a means of controlling costs. Realistic allowance should also be made for delays in employer billings. (Included are 12 appendixes, a glossary, lists of tables and illustrations.) (Author)