Section XI, Subsection B, of the S&O Agreement also requires that TxDOT provide an annual report documenting its fulfillment of responsibilities as a pass-through entity of FHWA funds on projects performed by local public agencies (subrecipients). Federal government laws, rules and regulations refer to local government entities as local public agencies (LPAs). TxDOT refers to LPAs as local governments (LGs) since the State of Texas laws related to LG entities are codified in the Texas Local Government Code. TxDOT defines a LG project as a transportation project for which at least one phase of project development (environmental, design, right of way (ROW), utility relocation or construction) or the program is managed by a LG entity and is reimbursed with FHWA or TxDOT funds.