The department reported that since the 2005/06 financial year it had been running at a shortfall until in November 2008 the department ran out of funds. This was not as a result of under-budgeting but rather that of underfunding. The matter had been largely resolved through the courts. The department had agreements with the provinces to provide the services to people who needed the service. Various contracts were used in these arrangements ranging from tendering contracts, negotiated contracts and interim contracts. It was reported that the bus operators preferred interim contracts (driven by ticket sales), but the department was now moving from these agency agreements towards conditional grants provided for in the DORA. This would ensure that there were strict conditions that operators would adhere to. Non-compliance would lead to termination of contracts. This would be closely monitored to avoid increasing unemployment.