Reply: With regard to part (a) of the question, the National Audit Office has observed the following shortcomings in the financial statements of Financial Year 2023/24 of the Rodrigues Regional Assembly (RRA). First, the financial statements of RRA for Financial Year 2023/24 were prepared on cash basis instead of accrual basis as per the established road map for the adoption of accrual- based International Public Sector Accounting Standards (IPSAS). The Ministry of Finance has been providing technical support to the RRA for the preparation of financial statements on accrual-based IPSAS. Second, the Director of Audit has highlighted that there was no marked improvement in the functioning of the Internal Control Unit at the level of the RRA. To strengthen the governance at the RRA, measures are being taken to adequately staff the Internal Control Unit. Third, the National Audit Office has also mentioned that no Audit Committee Charter has been signed between the Accounting Officer of RRA and the Chairpersons of the Audit Committees of Commissions at the RRA. As a result, there was no proper follow up on the recommendations of both the Director of Audit and the Internal Control Unit. In fact, no meetings were held by the Audit Committees for Financial Year 2023/24. The Ministry of Finance is working with the RRA to address the weaknesses.

121 With regard to part (b) of the question, the Public Accounts Committee, in its report dated 01 October 2024, noted with concern – “(…) funds were reallocated by the RRA from one vote item to another in excess of the permitted 2% of a vote item without notifying the Ministry. Such reallocation of funds was not properly monitored at the level of the Ministry resulting in mismanagement of projects and wastage of public funds.” The Public Accounts Committee has recommended the issuance of new guidelines for reallocation and virement of funds by the RRA. I wish to inform the House that all financial instructions, including virement, in the Financial Management Kit also apply to Rodrigues, with such modifications and adaptations as may be necessary. The Chief Commissioner’s Office of the RRA has issued a Circular in June 2025 on Procedures of Reallocation that are not consistent with the Ministry of Finance policy and principles on virement. I wish to inform the House that the Ministry of Finance will work with the RRA on a revised circular on virement that will ensure consistency with the central government budgetary control and financial governance. DUBAI EXPO 2020 – MAURITIAN DELEGATION – PARTICIPATION COST