ATTACHMENT 2

**Guidance for Identifying Eligible Institutions and Counting Children**

**Part I - Local Institutions**

1\. Identify eligible institutions. In order to be eligible to be
counted, a child age 5 through 17 must live in a locally operated
facility that meets the definition of an institution for neglected
children, an institution for delinquent children, or an adult
correctional institution as provided in section 1432(1) and (4) of the
Title I statute. It is not necessary to designate a child as neglected
or delinquent because if he or she is between ages 5 and 17 and is in an
institution that meets the definitions, that child would be eligible to
be counted.

2\. Report the October 2006 caseload data for children in eligible
institutions. The State educational agency (SEA) must report only the
number of children who were not counted in the enrollment data for the
State agency N or D program and live in an eligible institution for at
least one day during a 30 consecutive day period, at least one day of
which falls within the month of October 2006.

3\. Submit a separate count of children for each LEA in the following
categories of institutions: (A list of LEAs for your State showing
identification codes will be sent you electronically.)

-   Local institutions for neglected children (see the definition in
    section 1432(4)(A) of the Title I statute).

-   Local institutions for delinquent children (see section 1432(4)(B)).
    In this category also include children in local adult correctional
    institutions (see the definition of the term in section 1432(1)).

> Although detailed information for each institution is not required, it
> may be helpful to provide this guidance to the individual
> institutions.
>
> Please note that the category of an institution should not change from
> year to year unless there has been an official change in the purpose
> for which the institution is operated. For example, if an institution
> is operated for the care of neglected children, but the majority of
> the children residing in the institution during October are children
> adjudicated to be delinquent, the institution should still be reported
> as an institution for neglected children until its charter or purpose
> is officially changed to show that it is an institution operated for
> the care of delinquent children. Consistency in reporting from year to
> year is necessary because changing the category of an institution each
> year based on the category of the majority of children served affects
> the hold-harmless allocations and eligibility under the Title I, Part
> A formulas.

4\. Count only children ages 5 through 17.

5\. Verify the accuracy of the data to be submitted. Compare the October
2006 data to the data that were submitted last year. If there is a large
increase or decrease in a county count, the SEA should identify the
reason. For example, did a new institution begin operation? Did an
institution close? Do new institutions meet eligibility requirements?
Were October caseload data reported correctly? Were only children ages 5
through 17 reported in the count? While it is not necessary to submit
documentation to support the accuracy of the data, the SEA should be
prepared to respond if questions arise when ED verifies the counts.

**Part II - State-Operated or Supported Institutions**

1\. Identify eligible institutions or community day programs for N or D
children for which a State agency is responsible for providing free
public education and is actually providing a regular program of
instruction as defined in §200.90(b) of the Title I regulations.
Institutions for neglected children and institutions for delinquent
children are also defined in §200.90(b) of the Title I regulations. The
average length of stay in an institution for neglected or delinquent
children must be at least 30 days. Adult correctional institutions are
defined in section 1432(1) of the Title I statute, and community day
programs are defined in section 1432(3). A child must be in an eligible
institution or community day program in order to be counted.

2\. Submit data on the number of children enrolled in a regular program
of instruction for each eligible institution and community day program
for the date specified by the State agency in accordance with
§200.91(a)(2) of the regulations. To be counted, a child or youth must
be enrolled in a regular program of instruction provided by the State
agency for at least\--

-   20 hours per week if in an institution for N or D children or a
    community day program for N or D children; or

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-   15 hours per week if in an adult correctional institution.

> The SEA must adjust the enrollment data for each institution to
> account for the relative length of a State agency\'s annual
> educational program in such institution in accordance with §200.91(b)
> of the Title I regulations before submitting the data to ED.

3\. Count only children up to age 21 years (through age 20).

4\. Verify the accuracy of the data to be submitted. Compare each State
agency\'s enrollment data to the data that were submitted last year. If
there is a large increase or decrease in a State agency\'s count, the
SEA should identify the reason. For example, did a new institution begin
operation or did an institution close? Were the enrollment data reported
correctly and were data reported only for children and youth? Were the
enrollment data adjusted correctly? While it is not necessary to submit
documentation to support the accuracy of the data, the SEA should be
prepared to respond if questions arise when ED verifies the counts.

To assist you in collecting the data needed to complete Part II, we have
attached a worksheet (with instructions) that could be used to gather
the enrollment data from State-operated programs for N or D children,
community day programs, or adult correctional institutions within your
State (Attachment 3). States are **not required** to use this optional
worksheet or submit it to ED.