This program quality review instrument was designed for use in determining the quality of California's family day care programs in terms of seven functional components. These components included: (1) philosophy, goals, and objectives; (2) administration; (3) identification of the child's and family's needs; (4) home environment; (5) parent education and involvement; (6) community resources and involvement; and (7) program evaluation. The instrument specified for each functional component indicators and items which reviewers could check depending on whether the requirements of the functional component had been met. Verification of the presence and effectiveness of an indicator or item was made through documentation, observation, interview, or a combination of these methods. The instrument used was also designed to be used in self-review, as a teaching tool, and as the basis of planning for program improvement. Programs were rated excellent, good, adequate, or inadequate; if rated inadequate, programs must submit an improvement plan within 30 days of the review. (RH)