This report covers the Council on Adult Education's operation from September 1979 to December 30, 1980. The report outlines the annual activities, describes the Council's program, and gives a status report on the process developed to obtain input on the development of recommendations for the reauthorization of the Adult Education Act, which expires in 1983. During the period of time that this report covers, the Council completed recommendations on the organizational structure of the Office of Assistant Secretary for Vocational and Adult Education in the Department of Education, and published three extensive reports which will serve as basic references as the new Administration and the Congress formulate a federal policy relating to adult learners. A major part of the annual report is devoted to a preview paper on adult learning programs. In this paper, the Council notes that we know that most adult learning is self-directed and often done independently of structured educational institutions, and that adult education activities and adult earning opportunities are increasing. Under these conditions, the paper suggests ways in which organizational changes might enable the federal government to accomplish more than it now does with existing educational programs. The paper encourages linkages and cooperation that may be facilitated by organization charts and job descriptions, but depends, in the final analysis, upon the leadership at the top and the good will and common sense of the rest of those involved. The annual report also addresses the issue of administrative costs for adult education and makes recommendations for use of funds. (KC)