This handbook provides FY (fiscal year) 2002 guidelines developed by the Library of Michigan for administering LSTA (Library Services and Technology Act) grants. The first section provides an overview of the LSTA program. The second section gives the grant timeline for FY 2002. The third section describes the award process, including award notification, grant administration workshops, and LSTA forms. The fourth section outlines general administration guidelines for all funding areas. The fifth section covers reimbursement policies and procedures, including eligible costs, printed items, professional services, travel, ineligible costs, reimbursement documentation, the reimbursement form, the invoice summary form, source documents, the timekeeping report form, and the equipment inventory form. The sixth section addresses ownership of federally funded equipment, including title and disposition. The seventh section describes project revision, including scenarios that require project revision, the procedure to request a project revision, and incomplete projects without approved project revision. The eighth section summarizes property and services procurement, and the ninth section addresses copyrights. The tenth section describes reports, including interim reports, final reports, and site visits. The eleventh section covers single audit requirements and costs. The twelfth section addresses records retention. Appendices include mail and phone information, a glossary, a schedule of travel rates, and several required forms. (MES)