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BAGHDAD, Sept. 27 -- A $75 million project to build the largest police academy in Iraq has been so grossly mismanaged that the campus now poses health risks to recruits and might need to be partially demolished, U.S. investigators have found.

The Baghdad Police College, hailed as crucial to U.S. efforts to prepare Iraqis to take control of the country's security, was so poorly constructed that feces and urine rained from the ceilings in student barracks. Floors heaved inches off the ground and cracked apart. Water dripped so profusely in one room that it was dubbed "the rain forest."

"This is the most essential civil security project in the country -- and it's a failure," said Stuart W. Bowen Jr., the special inspector general for Iraq reconstruction, an independent office created by Congress. "The Baghdad police academy is a disaster."

Bowen's office plans to release a 21-page report Thursday detailing the most alarming problems with the facility.