The financial operations of providers of adult and community education (ACE) in New South Wales, Australia, were examined in a conceptual and empirical study. Enrollment data were analyzed and case studies of three community colleges and two community adult education centers in metropolitan, coastal, and rural communities were conducted. Four types of indicators were developed and used to compare ACE providers' income and activity costs: income, expenditure, activity, and activity cost indicators. Current funding arrangements were found to be associated with diversity in providers' income and activity. The observed variation in providers' income and activity was only partly accounted for by providers' size and scale; the variation was also due to providers' situation and the nature of the locality where ACE was being delivered. Participation in ACE was, to a certain point, associated with higher levels of household income, qualifications, and population density. Several ways in which ACE's current funding scheme may act as a disincentive to equity were discussed. (The bibliography contains 19 references. Fifty tables/figures are included. Appended are the following: letters to providers requesting cooperation; provider expenditure profiles; database summary formats; questions for assessing in-kind contributions; and main postcodes of metropolitan providers.) (MN)