The Cebu Provincial Government has established a Public Financial Management (PFM) team to address reporting deficiencies that have hindered its access to national funding, particularly as expenses rise following two major calamities in 2025.
Executive Order Formalizes PFM Team
Governor Pamela Baricuatro formalized the creation of the PFM team through Executive Order No. 25, series of 2026, signed on April 30. Provincial Administrator Joseph Felix Mari “Ace” Durano explained that the move aims to bridge the gap between provincial resources and the requirements for accessing national funds, especially after the province experienced significant disasters.
Audit Observations and Compliance Issues
Durano referred to the magnitude 6.9 earthquake on September 30, 2025, and Typhoon Tino on November 4, 2025. He noted that 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. The issue, he said, 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 National Funds
Compliance is strategic as it enables access to the Local Government Support Fund. The province recently secured PHP 720 million from the National Government—PHP 360 million for rice assistance and PHP 360 million for infrastructure—to augment its roughly PHP 2 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 PHP 11.9 billion budget for 2026 is 52.40 percent lower than the PHP 25 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 PHP 360 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.
