Nineteen cabinet rank departments and 13 governmental agencies administer government affairs in the Virgin Islands. In fiscal year 1977 major government revenue sources included 48% contributed by collections from U.S. customs and 29% from taxes. Major expenditures were 48% of all funds going into commercial and industrial development, 13% toward education, and 12% into general executive government expenses. Tourism remained the most important industry; in fiscal year 1977 the total expended by visitors was estimated at $152 million. The population of the islands was about 100,000 with some 32,000 students enrolled in public and private schools. A downward trend is developing in public school enrollment, but overcrowding remained a serious problem, with many schools conducting double sessions. The first section of this report gives general information on the islands, including descriptions of geography, government, finances and taxes, economic development, and population. Sections two and three summarize activities of each of the cabinet rank departments, governmental agencies, and the College of the Virgin Islands. Some of the cabinet departments include the Departments of Commerce, Labor, Personnel, and Public Works. Among the 13 agencies are the Community Action Agency, National Guard, Public Television System, Port Authority, and Planning Office. Tabular data is given in such areas as education, finance, health, law enforcement, and water and power authority. (DS)