This final report of the State Educational Agencies (SEA) Management of Compensatory Education Project was funded by ESEA Title V-505 and developed in cooperation with ESEA Title I. Seven states participated in this three-year, four-phase collective endeavor, agreeing to develop and field test an approach toward improving the management of compensatory education programs. The project products, two self-analysis instruments, one for State Educational Agencies (SEA) and the other for Local Educational Agencies (LEA), were said to be developed with Title I as its focal point, but that, with minor alterations, the findings could be applied to any compensatory education program and perhaps to similar programs not regarded as compensatory in nature. Any LEA or SEA, purportedly, can utilize these instruments to identify strengths and weaknesses in the administration of ESEA Title I programs. Additional products of the project were an SEA and LEA Process Models, serving as supporting instruments to the self-evaluation instruments. These were said to be designed to facilitate the better use of the instruments by identifying the "key" processes or activities that must be accomplished if improvement is desired as the result of self-analysis. They also enable the SEA and LEA to plan, assign responsibility, and monitor the processes or activities. Implementation findings on both the seven participating SEA and fourteen LEA agencies are given in this final report. (Author/AM)