In the 2010/11 financial year, the Department improved from a qualified to an unqualified audit report from the Auditor-General with findings on compliance and predetermined objectives. The Department did, however, not monitor its spending on projects. This resulted in a significant under- expenditure (59 per cent) on its budget which in turn resulted in the service delivery not being met. The other issues were as follows: (i) contravention of supply chain management regulations which resulted in irregular expenditure; (ii) high level of employees acting (leadership vacuum) mostly in the strategic leadership positions; (iii) investigations related to fraud and other financial misconduct; (iv) lack of compliance with legislation; (v) irregular expenditure of R2,8 million (which was supply chain management related) excluding wasteful or fruitless expenditure of R1,4 million; and (iv) lack of governance with regard to risk management, internal audit and audit committee.