 This is an annual examination of a recipient's operations and records that determines whether or not the recipient complied with laws and regulations applicable to the assistance they received.Additionally, Federal agencies routinely visit recipients and inspect their records and statements to check for situations of noncompliance with laws and regulations, and require periodic financial and performance reports that detail recipient operations.Federal agencies also require pass-through entities to perform similar procedures to their sub-recipients, since they are responsible for the assistance they pass on.