It was reported that the spending and the strategic focus of the Agency remained on the administration and payment of social grants. A significant achievement was achieved in turning around the Agency's financial position whereby an accumulated overdraft of R839.4 million was dealt with. Cost containment measures played a key part of the intervention. The majority of the budget (34%) was spent on the compensation of employees, followed by the cash handling fees (32%), while the balance was spent on operational expenses such as office accommodation, cleaning, security, travel and communication. The Head Office accounted for the 50% of the budget due to the cash handling fees budget while the other 50% was spent at the nine regional offices. The KwaZulu-Natal and the Eastern Cape regions accounted for the majority of the regional share of the budget respectively. The 2012/13 budget was adjusted (reduced) from R6, 200,270 billion to R6, 119,770 billion by an amount of R80, 500 million during the adjustment budget process.