Spring & Hibernate - Error when using #Transactional - spring

Question

I have an application setup based on a previous configuration - which was 100% functional. Now I am using maven and am encountering an Error in my controller class which says i must configure Beans.xml.
I'm not sure exactly what this means, as I have my dispatcher-servlet.xml configured in the same way as the functional application.
dispatcher-servlet.xml
<?xml version='1.0' encoding='UTF-8' ?>
<beans xmlns="http://java.sun.com/xml/ns/javaee"
xmlns:mvc="http://www.springframework.org/schema/mvc"
xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xmlns="http://www.springframework.org/schema/beans"
xmlns:context="http://www.springframework.org/schema/context"
xmlns:tx="http://www.springframework.org/schema/tx"
xsi:schemaLocation="http://www.springframework.org/schema/mvc http://www.springframework.org/schema/mvc/spring-mvc.xsd
http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans.xsd
http://www.springframework.org/schema/tx http://www.springframework.org/schema/tx/spring-tx.xsd
http://www.springframework.org/schema/context http://www.springframework.org/schema/context/spring-context.xsd">
<!-- Enables the Spring MVC #Controller programming model -->
<mvc:annotation-driven />
<context:component-scan base-package="com.me.test.controller"/>
<!-- Resolves views selected for rendering by #Controllers to .jsp resources in the /WEB-INF/views directory -->
<bean class="org.springframework.web.servlet.view.InternalResourceViewResolver">
<property name="prefix" value="/WEB-INF/jsp/" />
<property name="suffix" value=".jsp" />
</bean>
<bean id="dataSource" class="org.apache.commons.dbcp2.BasicDataSource" destroy-method="close">
<property name="driverClassName" value="org.apache.derby.jdbc.ClientDriver"/>
<property name="url" value="jdbc:derby://localhost:1527/userDB"/>
<property name="username" value="username"/>
<property name="password" value="password"/>
</bean>
<bean id="sessionFactory"
class="org.springframework.orm.hibernate4.LocalSessionFactoryBean">
<property name="dataSource" ref="dataSource" />
<property name="configLocation" value="classpath:hibernate.cfg.xml" />
</bean>
<tx:annotation-driven />
<bean id="transactionManager"
class="org.springframework.orm.hibernate4.HibernateTransactionManager">
<property name="sessionFactory" ref="sessionFactory" />
</bean>
<bean id="userDao" class="com.me.test.dao.UserDAOImpl">
<constructor-arg>
<ref bean="sessionFactory" />
</constructor-arg>
</bean>
Edit: Screenshot of error. Which occurs when using the #Transactional annotation.