NIJ, a component of the Office of Justice Programs, was created by the Omnibus Crime Control and Safe Streets Act of 1968, as amended. NIJ is authorized to support research, evaluation, and demonstration programs; technology development; and both national and international information dissemination. Specific mandates of the act direct NIJ to focus on strengthening and improving criminal justice and on reducing and preventing crime and delinquency. Part 1 of this report describes NIJ's organization, funding, and growth. This introduction to the Institute contains budget figures and explanations, as well as an organization chart. Part 2 explains how NIJ accomplished its goals, using brief examples. It contains a list of the Institute's strategic challenges, descriptions of partnership activities with Federal agencies and private foundations, and a reporting of outreach and dissemination efforts. Part 3 is a cross-section of NIJ's research and development activities. It presents 18 notable programs and projects in more depth. Space limitations prevent the inclusion of more than a sampling of the Institute's activities undertaken during the fiscal year. The 18 programs and projects are presented in five main sections: policing, drugs and crime, crime prevention, violence, and technology. Appendixes list the awards the Institute made during the fiscal year as well as the documents published.