Having assessed the above information, the Portfolio Committee on Mineral Resources has made the following observations: . There was a reduction in the budget allocation for the Mineral Regulation programme while the programme over-spent its budget in the previous financial year. The programme was allocated R183.6 million in the 2010/11 financial year and the allocation was reduced to R160.3 million in 2011/12. The programme had spent above the 25 per cent benchmark by the end of the first quarter of the 2011/12 financial year. . The Department registered a significant under spending on Payment for capital assets in 2010/11 and it appears that the scenario is going to repeat itself in 2011/12 since only 9.7 per cent was spent by the end of the first quarter of the 2011/12 financial year. . The Department included its organogram in the Annual Report as requested by the Committee. . The Department addressed the issues raised by the Auditor General in his 2009/10 report to Parliament. . Notwithstanding the above, the Department has once again received a qualified audit opinion in the 2010/11 financial year. Some of the findings that led to the qualified audit opinion are repeat findings e.g. invoices not paid within 30 days. . The Department has put in place plans to correct the mistakes identified by the A-G in his 2010/11 report and the Committee is satisfied with these corrective measures. . The Department requested R452.3 million in the 2011/12 financial year for capacity building but was allocated R10.1 million by the National Treasury. . The Department had 142 vacant and funded posts as well as 530 vacant and unfunded posts totalling to 672 vacant posts. This translates to a vacancy rate of 39.2 per cent. . The Department is seriously underfunded to the extent that it is difficult for it to perform some of its functions.