This report is the first for the CMC and incorporates the activities and financial statements of the former Criminal Justice Commission and the former Queensland Crime Commission (that merged in 2002 to form the CMC). The CMC’s crime jurisdiction encompasses major crime anywhere in Queensland, including organized crime, pedophilia, and other serious crime such as murder and arson. Some accomplishments in crime were the dismantling of 2 large-scale amphetamine production and distribution networks; the seizure of nearly $1 million in criminal assets; and the dissemination of over 300 intelligence items. The CMC received 2,795 complaints of public sector misconduct, comprising 5,455 allegations, and resulting in 145 charges against 60 people. A total of 232 investigations were finalized, many of them covert investigations that required use of special powers. Over 570 reviews of investigations conducted by other agencies were concluded. A total of 131 people were protected in 63 operations, including 47 people in 22 operations carried over from last year; and 125 threat assessments were conducted involving 181 people. Since January 2002, crime prevention research projects have been begun in the areas of juvenile offenders, drug dependency, amphetamine use, illicit drug use patterns, child pornography on the Internet, the courts and sexual offenses against children, and the link between sexual victimization and sexual offending. The major source of revenue is the operating grant received from the State Government. For the 6 months ending June 30, 2002, this was $14.950 million, which for a full year is less than 2 percent of the Queensland law, order, and public safety policy budget. Most of the expenses related to employees, supplies and services, and depreciation. Total expenses were $14.776 million for the 6 months ending June 30, 2002. 9 appendices, index