The Department was required to make an early transfer of funds to the Sheltered Employment Factories due to cash flow shortages at the factories, stemming from slow sales at the start of 2012/13. In addition, there is currently an on-going process to develop a business case to restructure the Sheltered Employment Factories to make them financially sustainable and to prevent the problems that have persisted for the past few financial years after the loss of their preferential procurement status, such as cash flow constraints and operating at a financial loss.