However the National Department of Human Settlements received a letter from SERVCON's Acting Manager Director indicating their inability to comply with the above prescript. The entity could not submit the report in time to meet the end of August 2010 deadline due to the outstanding written confirmation for the write off of interest and penalties by the South African Receiver of Revenue Services (SARS) which has effect on the Financial Statements of SERVCON as it has implications on the reduction of the entity's liabilities.