The National Treasury reported that since 1 July 2011, a practice notice had been put in place with government departments. In terms of this, the National Treasury would be invited to make an input in the procurement of all services exceeding R10 million. The National Treasury confirmed that the Department had numerous challenges especially pertaining to its funding model. It added that it was taking drastic measures to ensure that the Department spent its funds effectively, efficiently and economically. However, the Committee recorded its displeasure at the National Treasury's role as a custodian of state finances as it related to this matter; and this was particularly the case with procurement related issues as these reside directly with the National Treasury.