The PoEC reported that the first transfer of the conditional grant for the 2009/10 financial year was received in the last week of September 2009 and the last transfer in February 2010. The PoEC presented that the financial management capacity in the municipalities of the Eastern Cape remains a challenge. The PoEC added that the conditional grant did not provide for operational or administrative costs for the implementation of the grant. The PoEC reported that confirmation of the roll-over approval and additional allocations per the adjustments budget process reached the provincial department late (that is December 2009) in the 2009/10 financial year.