KLM received an unqualified audit opinion for the 2006/07 and 2007/08 financial years. The annual financial statements for 2008/2009 had not been submitted to the Office of the Auditor-General as yet, whereas they had to be submitted by 31 July 2010. The KLM reported that the delay to submit the financial statements on time was due to a lack of capacity (skills and human resources), and compliance with the Generally Recognised Accounting Principles (GRAP) 17. The conversion of the fixed assets register to GRAP proved to be a challenge. Submission of section 71 reports to the relevant Treasuries were delayed due to the following reasons/challenges faced by the Budget and Treasury Office: high staff turnover (due to payment of non market- related salaries), lack of capacity (skilled personnel), and having to deal with multi-year processing and finalizing the annual reports and financial statements for the 2008/09 and 2009/10 financial years.