2.3 Financial Performance of the Department The decrease of R3.435 billion in the annual appropriation from R3.991 billion in 2009/10 to R555.549 million in 2010/11 was mainly as a result of a decrease in transfer payments to SOCs. Under-spending in the Department amounting to R15.548 million was recorded in the current financial year. The amount was made up of current expenditure in the operational budget mainly under Compensation of Employees as a result of some posts that were not filled due to scarcity of specialist skills in the market, as well as under-spending under goods and services which arose due to some projects that were delayed until very late in the year. The Department had requested rollovers from National Treasury for two projects in the sum of R3.378 million in order for them to be completed in the new financial year. The Department did not achieve its 2% under-spending target, which was exceeded by 0,8% in the year under review. There was no substantive impact on delivery within programmes as a result of this under-spending.