7.4 Financial Accounting and Reporting Within the Supply Chain Management Policy sub-programme, National Treasury had set a target to roll out strategic sourcing principle to 42 medium- capacity municipalities. There is no report-back on this target, instead the Department indicates an achieved target relating to the training of officials on the strategic sourcing principle, which is not related to the target. The Annual Report has indicated further that the department had set a target to develop Terms of Reference for the comprehensive review in consultation with the National Economic Development and Labour Council. The target was not met as the Department has only commenced with the consultation with the relevant stakeholders. In addition, the Department had set a target to renew 32 transversal-term contracts. However, only 3 transversal-term contracts were renewed, 1 service contract was extended and 12 pharmaceutical contracts were transferred to the national Department of Health.