This guide focuses on the collection, measurement, and evaluation of data for programs operating under the mandate of Chapter 1 of the Education Consolidation and Improvement Act. Assessment of compensatory education performance of local education authorities (LEAs) is based on reporting of the following data: (1) basic and advanced skill scores; (2) demographic information; (3) student progress in regular programs; (4) continued progress in meeting desired outcomes; and (5) sustained effects. The guide lists possible additional data sources for program measurement and evaluation. A norm-referenced model is included. Tips on interpreting and using evaluation results and improving the accuracy of evaluation data are listed. Guidelines and sample reporting forms for a Chapter 1 annual review are included. A discussion of data disaggregation is provided. Data disaggregation is defined as the process of pulling apart test scores and other types of information concerning student achievement, instructional services, and staffing patterns in order to explore relationships between learning and program characteristics. This discussion includes guidelines for curriculum alignment and data disaggregation. A chart listing various scoring systems, a brief description of each system, and the advantages and limitations of each system is included. Checklists for Chapter 1 evaluation quality control and test selection are appended. (AF)