5. The provincial Departments of Arts and Culture do not have a strategy to follow-up on funds transferred to municipalities and ensure that they are spent on the Grant's priorities and this may open a loophole for misappropriation of taxpayers' money (Recurring observation). This is due to the fact that the Committee had noted during the last interaction with provinces (on 06 June 2010) that conditional grant funds that were transferred to municipalities appeared as spent on financial reports of provinces; whereas municipalities were not spending or spent the funds on projects that did not meet the criteria of the grant.