CAGAYAN DE ORO CITY — The Commission on Audit (COA) report became a key basis for the Sangguniang Panlalawigan of Misamis Oriental in approving only P3.3 billion of the proposed P4.495 billion provincial budget, citing that actual income cannot support a higher allocation.

Addressing these concerns, Finance Chair Rommel Maslog noted on April 15 that the board retains the authority to pass a supplemental budget should Capitol departments face funding gaps.

In an Audit Observation Memorandum dated March 11, 2026, addressed to Governor Juliette Uy and Vice Governor Jeremy Jonahmar Pelaez, COA flagged a significant mismatch between projected income in the provincial budget and actual collections reflected in the Statements of Receipts and Expenditures from 2023 to 2025.

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The discrepancy reached over P2 billion in 2025 alone.

COA warned that such gaps could disrupt budget execution, as limited financial resources may not be enough to support approved programs and spending.

In 2025, provincial income projections exceeded ₱6 billion, yet actual collections stopped at ₱3 billion. This 56.41% realization rate triggered a shortfall of over ₱2 billion.

The audit body noted that large variances weaken the budget’s reliability as a financial plan, potentially forcing adjustments in programs, projects, and activities to match actual income.

Maslog acknowledged the issue, saying collections have consistently fallen short of projections.

Gamay ra gyud atong nakolekta kumpara sa atong gi-project. Mao ni ang root sa problema karon,” he said, noting that the province realized only 56.41% of its ₱5.8-billion budget in 2025.

He stressed that the board must anchor the approved 2026 budget on realistic income levels.

“Gaproblema gyud ta financially—let’s face it,” Maslog said.

He noted that exceeding income targets would pave the way for a supplemental budget.

“Naa man gani sobra, dali ra mag-supplemental. Sila ra magbuot unsay ipriority,” he said, urging the Local Finance Committee to identify new revenue streams and improve collection strategies.

The reduced budget may limit funding for some provincial programs and services in the short term. Officials noted, however, that improved collections would allow the province to issue a supplemental budget for additional funding.

Tensions followed the budget news into an April 14 press conference, where department heads voiced their concerns over the planned reductions."

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Special Assistant to the Governor Celso Abucejo and Provincial Administrator Ruel Gayoso asserted that they submitted all necessary requirements and revenue projections to justify their budget requests.

“Nag-follow mi tanan sa ilang request… pero wala nila gi-consider. Kami pa nuon napasanginlan nga dili cooperative,” Gayoso said.

The door remains open for negotiation; Maslog signaled the board’s readiness to hold talks with the governor regardless of current friction.

“Ato ning sabotan para ma-plastar nato… dili na ta mag-ingon kinsay tama o mali. Sabotan nato unsay insakto,” he said.