This handbook provides FY (fiscal year) 2001 guidelines developed by the Library of Michigan for applying for LSTA (Library Services and Technology Act) subgrant funding. The handbook includes the following sections: (1) overview of the LSTA subgrant program; (2) general application guidelines for all funding areas; (3) budget category definitions for communications, library materials and supplies, professional services and costs, promotion and outreach, technology, training, and miscellaneous; (4) review of the proposal; (5) the award process; (6) reimbursement policies and procedures, including eligible costs, ineligible costs, reimbursement documentation, and ownership of federally funded equipment; (7) project revisions; (8) copyrights; (9) property and services procurement; (10) reports, including interim and final reports; (11) single audit requirements and costs; and (12) records retention. (MES)