Monitoring operation of an electro-mechanical transmission having a hydraulic circuit with flow management valves and pressure control solenoids to actuate clutches and pressure monitoring devices to monitor the hydraulic circuit is provided. The transmission operates in fixed gear and continuously variable operating range states. The method comprises controlling position of one of the flow management valves to control operation in one of the operating range states. A fault is detected in the one of the flow management valves based upon outputs of the pressure monitoring devices during steady state operation in one of the continuously variable operating range states. A fault is detected in the one of the flow management valves based upon the output of one of the pressure monitoring devices during a transition in the flow management valve.