This resource document provides general information about literacy portfolio assessment, guidelines on using the technique, and a format for getting started. The first part discusses testing and assessment in adult literacy and basic education, alternative assessment, and literacy portfolios. The second part contains a list of questions and steps to guide an instructor into portfolio assessment. Actual tools and procedures for helping a learner develop a literacy portfolio are provided. The tools are divided into three phases. Early assessment (intake or start-up activities) tools include the following: adult basic education learner information, goals list and literacy inventory, screening and placement interview, looking at one's own reading behavior, educational goals plan and progress record, and preattitudes of adult students. Ongoing assessment (in-class progress activities) tools are as follows: reading progress checklist; writing progress and process checklists; weekly self-assessment; writing conference record; spelling self-test; book list; learning log; daily log; form for recording; attendance and writings; monthly review; teacher's log; reading, personal, dialogue, and reading response journals; and listening progress. Looking back (end of the cycle, term, or program activities) tools include the following: reading and writing information sheets, questions for program evaluation, using literacy to make change, progress checklist, post-attitudes of adult students, and program evaluation by students. Contains 26 references. (YLB)