It was further reported that supply chain management policy was adopted by Council and was aligned to the National Treasury Guidelines and had been implemented since 2007. MFLM reported that bid specification, evaluation and adjudication committees were established and they were functional. However, the bid specification committee was meeting on ad hoc basis. It was reported that a budget and treasury office had been established. The existing structure was approved in 2003. However, financial management skills remained a challenge and GRAP and the MFMA introduced further challenges. MFLM complied with section 71 of the MFMA and conditional grants reporting requirements, and endeavours were being made to improve the quality of reporting.