Find the part of the sentence that contains an error:
The initiatives praised by the committee (1)/ are not only designed to modernise reporting systems (2)/ but also improving transparency in funding distribution (3)/ across all districts. (4)

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**Steps to spot the error**

1. The sentence uses the correlative pair **"not only ... but also"**.
2. Items joined by this pair must be in the same grammatical form (parallel).
3. After "not only" we have **"designed to modernise reporting systems"** (a verb phrase), but part (3) is **"improving transparency..."** (a gerund). These forms do not match.
4. Fix: use **"but also improve transparency..."** or **"but also to improve transparency..."**.

FINAL_ANSWER: c

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