The Department of Water Affairs (DWA) was allocated a total budget of R8,2 billion in the 2010/11 financial year. The departmental budget consists of five programmes. These are Administration with a budget of R967.498 million, Water Management with R402.939 million, National Water Resource Infrastructure programme with R2,2 billion, Regional Management with R4,3 billion and Water Sector Regulation being the lowest with R240.182 million. The DWA has under spent in most programmes for current payments with only 19,83 per cent of its budget being spent by the end of December 2010. In respect of the Regional Bulk Infrastructure Development and the Water Services Refurbishments programmes, it was reported that there was a lack of or no technical and management capacity. With reference to the Masibambane Donor Funding, it was reported that there was no common understanding within the DWA on how to spend the conditional funding which led to the slow expenditure thereon. To this end, the Committee requested the DWA to submit a detailed report to Parliament on how the Masibambane funding had been spent.