Pass-through entities are unique organizations (commonly state and county governments and some nonprofits) that serve as agents of the federal government for large grants. They receive a primary grant from a federal agency and then make sub-grants to recipients through a competitive application process. Pass-throughs are responsible for awarding, monitoring and closing the sub-grants according to the federal grant management regulations in the Uniform Guidance. Sub-grantees work directly with the pass-through entity; they never have to interact with the federal government. Keep in mind: the funds are still federal in nature despite flowing through an intermediary. All federal regulations remain in effect. Organizations that receive a sub-grant of federal funds need to be familiar with federal grant management rules and procedures before accepting the funds.