This report consists of nine chapters, each of which, with two exceptions, is devoted to what the Office of Education accomplished toward meeting one of its priorities in the fiscal year 1971. The exceptions are: Chapter 1, The Condition of Education--the Commissioner's personal assessment of education in the nation, which reaches into fiscal year 1972 and occasionally recalls events of the fiscal year 1970 and earlier years; and Chapter 9, Advisory Councils and Committees--which covers the calendar year 1971. Chapter 2 focuses on Office of Education aids to disadvantaged students, and Chapter 3 how minority groups were helped. Chapter 4, "No Room at the Bottom," deals with career education as marketable skills for all. Programs for the estimated 6 million school-age handicapped and one million preschoolers handicapped are described in Chapter 5. Office of Education encouragement of innovation in schools and colleges constitutes Chapter 6. Improvement of management of education at all levels, beginning with the Office of Education, for better service is the theme of Chapter 7. Chapter 8 deals with other major thrusts which, while not stated as priorities, nevertheless received major attention. Among these were the following programs; the Right to Read, Drug education, Environmental Education; the Arts and Humanities, and the Gifted and the Talented. Appended are lists of functions, meeting dates, and membership of advisory councils and committees. (RJ)