This manual sets forth applicable administrative policies and procedures to recipients of discretionary project grants or cooperative agreements awarded by program offices in the Office of Human Development Services (HDS). It is intended to serve as a basic reference for project directors and business officers of recipient organizations who are responsible for the administration and financial management of grants or cooperative agreements. An introduction and definitions section are followed by 12 chapters: (1) Application and Grant Award Process; (2) Cost-Sharing or Matching; (3) Cost Principles and Procedures; (4) Financial Requirements; (5) Administrative Requirements; (6) Reports; (7) Public Policy Requirements; (8) Recipient Procurements; (9) Property; (10) Grant Suspension, Termination, and Closeout; (11) Audits; and (12) Appeals. Attachments making up more than half the document include Code of Federal Regulations, Title 45, Part 74, and relevant Office of Management and Budget Circulars; HDS programs covered and not covered by Executive Order 12372; Cost Principles; and Checklists for Internal Control in the areas of personnel management, payroll, accounting, budget, cash management, procurement, and property management. (NB)