The purpose of this manual is to provide 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 Service and Construction Act (LSCA). The manual is divided into 16 sections: (1) Basic Cost Principles; (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; (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. Information is presented in outline format and copies of forms and examples are included as appropriate. Additional related guidelines and information are presented in nine appendices and an index is provided. (JLB)