The Department had spent R716 million (57.49 per cent) of its budget at the end of the first quarter. The highest spending of the budget was reported on the transfers and subsidies category. An amount of R680.8 million (64.99 per cent) was transferred to receiving agencies. The high spending on transfers and subsidies was attributed to the 100 per cent transfer of conditional grants to municipalities under the FIFA World Cup Unit programme. These included the 2010 FIFA World Cup Development and 2010 World Cup Host City Operating grants. Furthermore, this high spending was influenced by the 100 per cent VAT refund of R40 million to FIFA for the FIFA World Cup tickets. As a result of these transfers, R554.7 million (99.29 per cent) of the 2010 FIFA World Cup Unit budget had been spent at the end of the first quarter. However, transfers were not made to other agencies, including sports federations, Boxing SA and Lovelife. It was indicated that these were to be transferred from the second quarter onwards.