The state-administered grant program authorized under the "Adult Education and Family Literacy Act (AEFLA)", enacted as Title II of the "Workforce Investment Act (WIA)" of 1998, is the major source of federal support for adult basic education and literacy education programs. When "AEFLA" was authorized in 1998, Congress made accountability for results a central focus of the new law, setting out new performance accountability requirements for states and local programs that measure program effectiveness on the basis of student academic achievement and employment-related outcomes. To define and implement the accountability requirements of "AEFLA", the U.S. Department of Education's Office of Vocational and Adult Education (OVAE) established the National Reporting System (NRS). To monitor data collection procedures and to promote data quality improvement, OVAE developed data quality standards to clarify the policies, processes, and materials the states and local programs should have in place to collect valid and reliable data. To assist states in meeting the standards, OVAE has provided resources, training, and technical assistance activities to improve data quality and has refined NRS requirements, including producing guidelines for conducting follow-up surveys. OVAE has also provided individual technical assistance to states on NRS implementation. In the program year (PY) 2004-05, the state grant program enrolled 2,581,281 learners, of whom 39 percent were enrolled in Adult Basic Education (ABE), 16 percent were enrolled in Adult Secondary Education (ASE), and 44 percent were enrolled in English Literacy (EL) programs. PY 2004-05 marked the fifth year of the implementation of the NRS accountability requirements. This paper serves as the annual report of the U.S. Department of Education's Office of Vocational and Adult Education for PY 2004-2005. A table showing the enrollment of young adults ages 16-18 in adult education by state PY 2000-01 through PY 2004-05 is appended. (Contains 16 exhibits.)