a) As disclosed in the appropriation statement, the department materially underspent its total budget (vote). As at 31 March 2011, the underspending amounted to R728 622 000. The underspending was mainly due to the following: . Compensation of employees: Savings as a result of lower than anticipated expenditure due to the appointments that did not materialise before the financial year-end as well as vacancies resulting from natural attrition. . Goods and services: The net underspending was mainly due to the late finalisation of the State Information Technology Agency (SITA) service level agreements for the information technology projects for the financial year, which ultimately resulted in the delayed finalisation of payments. . Buildings and other fixed structures: The net underspending was mainly due to lower than anticipated expenditure that arose from the slow progress and, as reported by the Department , poor workmanship by the Department of Public Works (DPW) contractors, delays in DPW tender process and appointment of contractors as well as a delay in the approval of a site valuation.