This publication is a resource guide to the regulations governing the use of federal Carl D. Perkins Vocational and Applied Technology Education Act of 1990 dollars. Chapter 1 gives an overview of the audit process and the handbook. Chapter 2 covers the key elements in each section of the Perkins Act. Chapter 3 provides an overview of all legislative requirements affecting Perkins spending. Many of the legal authorities cited are included as appendixes to the handbook. Chapter 4 covers key requirements for all projects using Perkins Act basic grant funds. Chapter 5 explains the requirements for using nonbasic grant Perkins funds. Chapter 6 explains what kinds of costs are allowable, allowable with prior approval, and not allowable under Perkins. Chapter 7 offers guidance in identifying direct and indirect costs and developing cost allocation plans. Chapter 8 explains the audit process and offers help in preparing for this annual event. Chapter 9 shows how to avoid audit problems in the areas of time and effort, nonsupplementing, carry over of unexpended funds, statute of limitations, matching, and maintenance of effort. Extensive appendixes include the following: a glossary, proposed Perkins regulations, regulations regarding state-administered programs, Uniform Administrative Requirements for Grants and Agreements, General Education Provision Act--Enforcement, Department of Education Audit Requirements, key Department of Education decisions, and index. (YLB)