Concerning wayward YM. When to intervene and get the bishop involved????

Recently I have had the opportunity to work with a Young Man who is struggling. When I first became his YM leader he was doing fine and made smart comments in class. I grew to love him and appreciate his presence. Then a boundary change this last summer sent him to a new school and away from his church friends at his old school. Soon his spirits seemed to be sagging and he was changing for the worse. His attendance on Sunday started to get erratic and his parents grounded him from outside activities including wed night activities. I started putting the other kids in my vehicle and having Sunday’s lessons in his house. Then his father told me the reason he was grounded is that he was failing all his classes at school. Finally I started hearing rumors from the other kids that he was smoking pot.

I put all of the factors together as I reasoned on what to do:

New school/new friends
Sagging spirits
Sudden bad grades
No desire to come to church
Rumors of drug use

I figured with all of these factors it was time to bring in the Bishop. So I walked into the Bishop’s office and laid out what I thought was going on. The Bishop reacted quickly. The next day he visited the parents and they talked about the YM. The parents said that they were also suspicious of drug use and had been recently looking through his room looking for drugs. They expressed thanks that we as a ward leadership cared so much about their son to make efforts to help.

So the question is. When and how should youth leaders go about trying to help the youth that they work with? Can trying to help backfire?