The Adult Education--Basic Grants to States program authorized under the Adult Education and Family Literacy Act of 1998 (AEFLA), enacted as Title II of the Workforce Investment Act of 1998 (WIA) (P.L. 105-220), 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 student results a central focus of the new law, setting out new performance accountability requirements for state and local programs that measure program effectiveness on the basis of student academic achievement and employment-related outcomes. The U.S. Department of Education's (Department's) Office of Vocational and Adult Education (OVAE) established the National Reporting System (NRS) to not only define the measures and implement the accountability requirements of AEFLA, but to act as a reservoir of data collected under these measures. This report represents the seventh year of implementing the AEFLA requirements using the NRS. As part of its efforts to monitor data collection procedures and promote data quality improvement, OVAE developed data quality standards to clarify the policies, processes, and materials that state and local programs should have in place to collect valid and reliable data. OVAE assisted states in meeting the congressionally enacted AEFLA standards by: (1) providing resources, training, and technical assistance activities to improve data quality and (2) refining NRS requirements, including producing guidelines for conducting follow-up surveys used to obtain data on the particular measures). OVAE also has provided individual technical assistance to states with NRS implementation. The Department is required by Sec. 212(c)(2) of AEFLA to make available and issue to Congress and the public the AEFLA annual report. Information on states' yearly performance in meeting the Adult Education--Basic Grants to States program performance measures is included in the annual report, as are aggregated data on national performance outcomes. [For the 2005-2006 annual report, see ED610073.]