In its presentation the Department reported on the following challenges that were experienced: other projects that were put on hold would be postponed by a further three year period and this was due to budget cuts over the MTEF by the provincial Treasury; delays in payments which resulted in some payments being made late December 2011; budgeting challenges due to accruals and rollovers on conditional grants that were only approved towards the end of the third quarter which left the Department with insufficient time to spend the funds.