. The final transfer for the Education Infrastructure Grant to the Eastern Cape Province in respect of the construction, rehabilitation, renovation, upgrading and maintenance of school infrastructure was withheld due to slow spending. The province experienced challenges in relation to the lack of capacity to deliver the programme. . The School Infrastructure Backlog Indirect Grant for the eradication of inappropriate schools and provision of basic services spending was lower than projected due to capacity challenges among implementing agents and contractors. This had an impact on the implementation of approved projects. . There was under expenditure on the Systemic Evaluation project due to the shifting of the Annual National Assessment (ANA) from February 2012 to September 2012. . The National Education Evaluation and Development Unit (NEEDU) evaluators were appointed during the latter part of the financial year. The delays in the appointment resulted in under-expenditure on compensation of employees for the project.