Programs administer assistance by "granting" or "awarding" a portion of the assistance to recipients. These are called Federal grants or awards. Recipients must first apply for the award directly to the federal agency that administers the program. The agency must then determine the amount of assistance to be awarded and notifies the recipient of the award. To be official, an award requires a contract or grant agreements between the agency and the recipient that details the use of the award and restrictions and limitations.