KRLM reported the following capacity constrains: several key positions are occupied by aged staff in their Finance Department, and as a result it makes it difficult to build capacity and to introduce new legislation. Training on the Municipal Finance Management Act, GRAP and the new Financial Management System was still needed. KRLM reported that their employee related cost was at 35 per cent (R28, 8 million) of the operating budget and the repairs and maintenance costs at 7 per cent (R5, 7 million) of the operating budget. KRLM reported that 87 per cent of their funding was in the form of capital grants and subsidies dependency. Their own revenue was 13 per cent of the total funds.