A Congressional staff study was undertaken to analyze the Literacy Management Information Project Report (LMIPR), released by the U.S. Department of Education in May 1986, and to determine whether its findings were valid. The LMIPR found that there are 79 literacy-related programs administered by 14 federal agencies and that $347.6 million was spent for adult literacy activities in fiscal year (FY) 1985. The committee staff telephoned the program directors of the 79 programs that the LMIPR listed as having literacy-related activities for adults and contacted 20 randomly selected state directors to verify program content and dollar figures reported by the LMIPR. Approximately 90 percent of the officials contacted said that they had not been asked for their input when the LMIPR was being prepared. Some of the major findings of the staff study were as follows: (1) of the 79 programs in 14 federal agencies that were identified in the LMIPR as conducting literacy-related activities for adults, only 10 (13 percent of the program), in 5 federal agencies, were definitely conducting literacy activities, and 38 (48 percent) of the programs were not conducting adult literacy activities; (2) several programs receive no funding for literacy activities; (3) 25 (32 percent) of the programs do not have literacy as their major function; (4) in FY 1985, only $126.5 million or 36 percent of the $347.6 million was spent on literacy activities for adults; (5) the 10 programs that have literacy as their major function accounted for $99.9 million or 79 percent of the $126.5 million; and (6) the Adult Education State Administered Program accounted for $81 million or 81 percent of the $99.4 million and 64 percent of the $126.5 million. (The report presents a short analysis of the 79 programs.) (KC)