As in the previous financial year, the basis for qualified opinion in the 2010/11 financial year was the failure to comply with section 38 of the PFMA. The A-G reported that the receivables for departmental revenue balance of R72.2 million was misstated as a result of omissions in respect of payments received and not recorded, amounts due not being raised and incorrect interest calculations on outstanding balances. This implies that the R72.2 million that is recorded as owed to the Department is incorrect due to reasons stated. Payments received and not recorded might have led to the amount being lesser and amounts due not raised could have led to the amount being higher. Incorrect interest calculations on outstanding balances could have gone either way depending on whether higher or lesser interest rate was used. The A-G further stated that the Department did not identify and correct all the errors that existed in the balance as a result the extent of the error could be determined.