THE Cebu Provincial Government formed a Public Financial Management (PFM) team to address reporting gaps that limit its access to national funding, especially as expenses rise following twin calamities in 2025.
Gov. Pamela Baricuatro formalized the move through Executive Order 25, series of 2026, signed on April 30.
“This is one approach of the provincial government under Governor Pam to close the gap between our resources and the requirements, especially since we have gone through calamities,” Provincial Administrator Joseph Felix Mari “Ace” Durano said on Wednesday, May 6.
Audit observations
Durano referred to the magnitude 6.9 earthquake on Sept. 30 and typhoon Tino on Nov. 4, 2025. He noted the Province has been repeatedly flagged by the Commission on Audit (COA) for failing to comply with Department of Budget and Management (DBM) reportorial requirements.
Durano said the issue stemmed from years of neglect, with key offices such as the treasurer’s, budget and accounting units losing familiarity with reporting processes. The PFM team will serve as a support mechanism to restore compliance capacity among these departments.
Accessing funds
Compliance is strategic as it enables access to the Local Government Support Fund. The Province recently secured P720 million from the National Government — P360 million for rice assistance and P360 million for infrastructure — to augment its roughly P2 billion development fund.
“That’s almost 50 percent of your development funds,” Durano said. He added that national funding is critical given the fiscal situation following the 2025 disasters. The approved P11.9-billion budget for 2026 is 52.40 percent lower than the P25-billion allocation in 2025, which Baricuatro described as “bloated.”
Budgetary reforms
Durano said past budgeting practices raised concerns, particularly when actual revenues were significantly lower than appropriations. He noted that stricter compliance with DBM standards could have prevented inflated budgets in previous years by ensuring high standards of fiscal discipline.
“In other words, we have to adopt high standards... complying with national standards implemented by the DBM,” he said. He clarified that while the DBM handles the release of the budget, the COA audits how the funds are spent to ensure accountability.
Strategic necessity
Accessing national funds allows the Provincial Government to cover additional needs, such as disaster repairs and subsidies, without cutting existing programs. Durano noted that a P360 million rice subsidy secured in February helped maintain infrastructure and medical assistance funds.
Failure to comply with requirements risks losing access to available funds that would otherwise be allocated to other provinces. Durano emphasized that the national budget is available, but the Province must meet the necessary reportorial benchmarks to claim its share. / CDF