This manual has been compiled to provide consistent grant application and administrative procedures for state agencies which award grants or contracts to local governments. It provides a conceptual framework of information concerning the reporting, financial, contractual, and auditing requirements for recipients of Texas State Library grants funded with state and federal funds under the Library Systems Act (LSA) and the Library Services and Construction Act (LSCA). A brief preface explains the purpose of the manual together with its scope and a statement of ethical conduct for libraries. Standards and administrative requirements are then presented in 16 sections: (1) Basic Cost Principles (allowable costs, unallowable costs, prior approval costs, indirect costs); (2) Documentation of Time and Attendance; (3) Allocation of Costs to Projects; (4) Standards for Financial Management Systems; (5) Grant Payments; (6) Program Income; (7) Audits; (8) Program Revision Procedures (changes in project scope or objectives; transfer of funds among projects, direct cost categories, and to a project not authorized in the contract; prior approval costs); (9) Property Acquisition and Management; (10) Debarment and Suspension; (11) Procurement Standards; (12) Performance Reporting; (13) Financial Reporting; (14) Record Retention; (15) Enforcement; and (16) Close-Out (of grant awards). Concluding the manual are the following appendixes: (1) Questions and Answers to the Uniform Grant and Contract Management Standard; (2) Prior Approval Guidelines; (3) Texas State Library Appeals Procedure; (4-5) Property Inventory Guidelines (system operation grants and general); (6) Audio-Visual Inventory Guidelines; (7) Government-Wide Common Rule for Non-Procurement Debarment and Suspension; (8) Government-Wide Requirements for a Drug-Free Workplace; and (9) City and County Vendor Identification Numbers. (MAB)