Internal Audit Services conducted an Early Implementation Review of the Understanding the Early Years (UEY) Initiative in 2006-07. This review is intended to provide assurance to senior management that program delivery has been established appropriately in order to meet its objectives and highlight any areas that require focused management attention for improvement. UEY is a national initiative designed to provide communities across Canada with locally specific information and knowledge on the development of children under age six in their communities; on family and community characteristics; and on programs and services supporting them. It helps communities assess their children's needs and equips them with information to make informed resourcing decisions about the best policies and programs for young children and their families in these communities. Overall, the UEY Initiative is well managed and controlled in support of program objectives. Good communication and cooperation is evident within the UEY program area, as well as with recipients and other stakeholders. Feedback from recipients and departmental representatives has led to improved tools and processes for the second round of CFP, as well as overall management of the UEY Initiative. Appendices include: (1) Approved File Review Results; (2) Rejected File Review Results; (3) Review Objectives, Criteria and Methodology; and (4) Management Action Plan. (Contains 2 figures.)