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EN BANC
RE: NON-SUBMISSION OF A.M. No.11-6-60-MTCC
MONTHLY FINANCIAL
REPORTS OF MS. ERLINDA P.
PATIAG, CLERK OF COURT,
MUNICIPAL TRIAL COURT IN
CITIES, GAPAN CITY, NUEVA
ECIJA,
x------------------------------------------x
OFFICE OF THE COURT A.M. No. P-13-3122
ADJ\IIINISTRATOR, [Formerly A.M. No. 12-9-71-MTCC
Complainant, (Report on the Financial Audit
Conducted at the Municipal Trial Court
in Cities, Gapan City, Nueva Ecija)]
Present:
BERSAMIN, CJ,
CARPIO,
PERALTA,*
DEL CASTILLO,
PERLAS-BERNABE,
LEONEN,
JARDELEZA,
- versus -
CAGUIOA,
A. REYES, JR.,
GESMUNDO,
J. REYES, JR.,
HERNANDO,*
CARANDANG,
LAZARO-JAVIER, and
INTING,JJ
CLERK OF COURT IV ERLINDA
P. PATIAG, l\'llJNICIPAL TRIAL
Promulgated:
COURT IN CITIES, GAPAN
CITY, NUEVA ECIJA, June
Respondent.
On 0fficial business.
Decision 2 A.M. Nos. 11-6-60-MTCC
and P-13-3122
x-------------------------------------------------------------------------------------------x
DECISION
PERCURIAM:
Before this Court are two consolidated administrative cases against
respondent Erlinda P. Patiag (Patiag), Clerk of Court IV of the Municipal
Trial Court in Cities (MTCC), Gapan City, Nueva Ecija. A.M. No. 11-6-60-
MTCC pertains to respondent's failure to submit the monthly financial
reports of collections for the judiciary funds, while A.M. No. P-13-3122 is
the result of the financial audit conducted by the Office of the Court
Administrator (OCA) on the books of account of the respondent.
The Case and the Facts
A.M. No. 11-6-60-MTCC
In a Letter' dated April 14, 2008, the OCA directed Patiag to show
cause why her salary should not be withheld for her failure to submit the
monthly financial reports for the following: ( 1) Judiciary Development Fund
(JDF) for the months of May to December 2007 and January 2008 up to the
present; (2) the Special Allowance for the Judiciary Fund (SAJF) for the
months of May 2007 up to the present; (3) the Fiduciary Fund (FF) for the
months of November to December 2006, January 2007, and March 2007 up
to the present; and (4) the Sheriff's Trust Fund (STF) for the months of
October 2006 up to the present.
Patiag failed to comply despite several warnings and follow-up
communications sent by the OCA. Her non-compliance even resulted in the
withholding of her salaries, allowances, and other monetary benefits. 2
A.M. No. P-13-3122
Patiag 's failure to submit the required monthly reports despite several
directives prompted the Court to direct the OCA to constitute an audit team
to investigate her books of account. In its report3 dated September 12, 2012,
the audit team found that Patiag had been remiss in her performance of her
duties and that there were massive shortages in the court's funds. According/
to the audit team:
Rollo (A.M. No. 11-6-60-MTCC), p. 7.
Id. at 6.
Rollo (A.M. No. P-13-3122), pp. 11-28.
Decision 3 A.M. Nos. 11-6-60-MTCC
and P-13-3122
1. Patiag was not depositing her collections on time. The examination of
the records revealed a huge discrepancy of the amount that should be
in Patiag's possession; 4
2. A total of 940 booklets of original receipts were issued by the Court
since 1985 but eight (8) booklets 5 that were recorded and reported in
the monthly reports used for JDF and SAJF collections were missing.
The audit team also discovered material discrepancies on the accounts
between entries in the cashbooks and the actual collections appearing
in the copies of the triplicate original receipts;
3. There were questionable withdrawals amounting to Pl,020,000.00
which were lacking supporting documents authorizing the refund,
with blank vouchers bearing only the signatures of the claimants;
4. The audit team discovered the practice of the court of not remitting
the collections on time. There was an instance wherein JDF
collections for the month of February 1991 was remitted only on June
6, 1995, or four (4) years and four (4) months of delay. Records
showed that delayed remittance of collections has been the practice
until the financial audit team discovered it during the audit
engagement. 6
FUND COLLECTION PER PERIOD O.R. USED TOTAL COLLECTION
JDF Feb. 13 to Mar. 5, 2012 1269200-250; 1269877- 2,868.00
900; 1349001-050;
SAJF Feb. 13 to Mar. 5, 2012 1269061-100; 1269115 I - 10,219.20
200; 1348001-050;
1349101-107
MF Feb. 21 to Feb. 29, 2012 369177-180 2,000.00
FF Jan. II toFeb.24,2012 1269517-526 41,000.00
STF Feb. 14, 2012 4304648-649 2,000.00
TOTAL COLLECTION PER OFFICIAL RECEIPT 58,087.20
Recapitulation:
Total Collection from the last deposit date (per fund) to March 5, 2012 p 58,087.20
Cash on Hand as of March 5, 2012 3,680.00
Initial Cash Shortage p 54,407.20
O.R. Series Fund Used Period Used
8312901-83 I 2950 SAJF 06/06/11 to 06/09/11
83I2951-8313000 SAJF 06/09/11 to 06/14/ 11
8313101-8313150 SAJF 06/28/11 to 06/30/11
8314051-8314100 JDF 05/18/11 to 05/23/11
8314101-8314150 .IDF 05/23/11 to 05/30/11
8314101-8314150 JDF 06/13/11 to 06/17/11
8314451-8314500 JDF 07 /04/ I I to 07 /08/11
8314801-8314850 JDF 07/21/11 to 07/27/11
Schedule Fund Total Delayed Deposit Total Unearned Interest at 6% per
annum
3 JDF 572,153.56 30,193.21
4 SAJF 216,059.20 12,406.48
5 GF-OLD 163,037.10 5,942.76
6 MF 68,625.00 3,439.67
7 LRF 15,493.56 686.93
8 VCF 5,920.00 295.42
TOTAL 1,041,288.42 52,964.47
I/
Decision 4 A.M. Nos. 11-6-60-MTCC
and P-13-3122
Based on the available documents, the audit yielded the following
schedule of shortages incurred for each fund according to the audit period
covered:
Particulars JDF SAJF Gen.Fund Mediation LRF VCF
Period Covered 03/1985 to 11/11/03 to 10/03/97 to 11/05/04 to 09/19/[97] 11/03/97
02/29/2012 02/29/12 02/29/12 02/29/12 to to
02/29/12 02/29/12
Total Collection 1,416,493.30 1,314,361.70 199,572.60 163,555.00 29,226.64 10,100.00
Less: Total 823,439.86 105,223.52 445,037.60 153,555.00 17,172.96 7,655.00
Remittance
UNDER
(OVER) 593,053.44 1,209,138.18 (245,465.00) 10,000.00 12,053.68 2,445.00
DEPOSIT
Less:
Erroneous
Remittance of - - -
SAJF collection
to GF account
>Nov. IO, - (9,405.00) 9,405.00 - - -
2003 to July 8,
2004
>Aug. 2004 to
June 2006 - (231,060.00) 231,060.00 - - -
Balance of
Accountability 593,053.44 968,673.18 (5,000.00) 10,000.00 12,053.68 2,445.00
FINAL ACCOUNTABILITY AS OF FEBRUARY 29, 2012 1,581,225.30
The team gave Patiag the opportunity to explain her side but the latter
opted not to explain. During the audit team's exit conference with Presiding
Judge John Voltaire C. Venturina, Patiag offered no explanation but
promised to restitute the cash shortages she incurred.
Meanwhile, on March 30, 2012, Patiag made partial restitution for the
FF and STF in the amounts of P518,000.00 and P9,000.00, respectively. 7 On
April 3, 2012, Patiag restituted the shortages incurred in the MF, Legal
Research Fund and Victim's Compensation Fund amounting to Pl0,000.00,
Pl2,053.68 and P2,445.00, respectively. 8 As of this date, no restitution was
made for the shortages incurred in the JDF and SAJF amounting to
P593,053.44 and P968,673.18, respectively.
The Court, in a Resolution 9 dated June 13, 2013, adopted the
recommendations submitted by the OCA, as follows:
X X X
(3) to DIRECT Clerk of Court IV Erlinda T. Patiag, within ten (10) days
from notice:
(3.a) to RESTITUTE the remammg sh011ages incurred totaling
Pl,561,726.62, broken down as follows:
FUND PERIOD COVERED AMOUNT
Judiciary Develooment Fund 03/01/85 to 02/29/12 593,053.44
I
Special Allowance for the 11/11/03 to 02/29/12 968,673.18
Id. at 14-15; 62-63.
Id. at 16-17; 64-65.
Id. at 71-80.
Decision 5 A.M. Nos. 11-6-60-MTCC
and P-13-3122
Judiciar
Balance of Accountabilit 1,561,726.62
(3.b) to PAY and DEPOSIT to the Judiciary Development Fund
(JDF) the total amount of Fifty-Two Thousand Nine Hundred
Sixty-Four Pesos and Forty-Seven Centavos (P52,964.47),
representing the interest earned, computed using the legal rate of
six (6%) percent per annum for not remitting the collections of the
following funds on time, to wit:
X X X
(3 .c) to EXPLAIN the following discrepancies noted in the
reporting of collections under JDF and SAJF accounts, to wit:
X X X
(3.d) to EXPLAIN the following DELAYED Remittances stated in
the schedules attached as summarized below, to wit:
X X X
(3.e) to SUBMIT the missing EIGHT (8) booklets of triplicate
official receipts with series numbers:
X X X
(4) to PLACE Ms. Erlinda T. Patiag under preventive SUSPENSION
EFFECTIVE IMMEDIATELY, until the resolution of this administrative
matter, and is FINED in the amount of Five Thousand Pesos (PS,000.00)
for failure to deposit her collections on time thereby depriving the
government of supposed interests earned from the said collections;
(5) to DIRECT Mr. Ernesto M. Aisporna, Junior Process Server,
Municipal Trial Comi in Cities, Gapan City, Nueva Ecija to LIQUID A TE
the cash advances he made totaling P 183,400.00, which comprises of:
X X X
(6) to DIRECT Mr. Ernesto Mendoza, Sheriff IV, Regional Trial Court,
Gapan City, Nueva Ecija to LIQUIDATE the cash advances he made
totaling Ten Thousand Pesos (P 10,000.00), to wit:
X X X
(7) to DESIGNATE Ms. Helen J. Pineda, Cami Stenographer I, as
Accountable Officer of the Municipal Trial Court in Cities, Gapan City,
Nueva Ecija, and is DIRECTED to STRICTLY ADHERE with the
guidelines and Circulars issued by this Court with regard to the proper
handling of judiciary funds; and
(8) to DIRECT Hon. John Voltaire C. Venturina, Presiding Judge of the
Municipal Trial Court in Cities, Gapan City, Nueva Ecija, to STRICTLY
MONITOR the financial transactions of the court to A VOID the repetition
of the same infractions committed by employees under his supervision.
Eventually, Patiag submitted a Motion for Reconsideration 10 dated
November 18, 2013. In her motion, Patiag enumerated the reasons for the
huge shortages she incurred as follows: (a) there was no inventory conducted
during the turnover of financial records from the former clerk of court to her,/
10
Id. at 83-89.
Decision 6 A.M. Nos. 11-6-60-MTCC
and P-13-3122
hence, all shortages of her predecessor was passed on to her; and (b) the
subsequent relocation and transfer of the court to different buildings in 2006
and 2009 caused the loss of boxes of receipts and ledgers of financial
records which contributed to the shortages in the judiciary collections. Patiag
is also asking for a re-audit of her financial shortages. She also requested
that her financial accountabilities be deducted from her withheld salaries and
allowances and to allow her to use whatever portion will be left.
Meanwhile, in a Letter 11 dated January 21, 2014, Patiag submitted the
financial reports for the judiciary funds and the missing eight (8) booklets of
Official Receipts.
In a Resolution 12 dated March 12, 2014, the Court resolved to
consolidate these administrative cases.
Meanwhile, upon examination of the missing eight (8) booklets, a
shortage of ?621.20 was disclosed. Subsequent examinations on the books
of accounts of Patiag also revealed an additional cash shortage of
P2,000.00 in the MF. Thus, the OCA re-evaluated the case and re-assessed
Patiag's liability to include the said shortages.
The Report and Recommendation of the OCA
In its Memorandum 13 dated September 13, 2017, the OCA
summarized Patiag's cash accountability to One Million Six Hundred
Seventeen Thousand Three Hundred Twelve Pesos and 29/100
(Pl,617,312.29) as follows:
FUND Period Covered Balance of
Accountability
Judiciary Development Fund March, 1985 to PHP 593,053.44
(JDF) 29 February 2012
Special Allowance for the 11 November 2003 to 968,673.18
Judiciary Fund (SAJF) 29 February 2012
Mediation Fund (MF) I to 18 March 2012 2,000.00
UNEARNED Interest due to delayed 52,964.47
remittances
After submission of the missing eight Additional JDF Shortage 621.20
(8) O.R. booklets
TOTAL ACCOUNTABILITY PHP 1,617,312.29
The OCA held that the documents and records which respondent
alleged as lost and missing during their transfer of office in the years 2006
and 2009 were found by the audit team, except for the said eight (8) booklets
that were later on found in her possession. Likewise, respondent's assertion
that she inherited the shortages from her predecessor is unacceptable since
the subject of the audit was solely on her accountability period from March
1985 to February 29, 2012 until the period of March 1 to 18, 2012 based on/
her submitted documents.
11
Id. at 128-129.
12
Id. at 96.
13
Rollo (A.M. No. I 1-6-60-MTCC), pp. 73-80.
Decision 7 A.M. Nos. 11-6-60-MTCC
and P-13-3122
In the Court's Resolution 14 dated November 20, 2017, the Court
adopted the recommendation of the OCA and resolved, among others, to:
(a) clear Sheriff IV Ernesto Mendoza from his cash accountabilities; (b) drop
his name as respondent in A.M. P-13-3122; and (c) consider the same closed
and terminated as to him by reason of his full compliance with the directive
in the Resolution dated June 13, 2013 which directed him to liquidate the
cash advances he made totaling Ten Thousand Pesos (Pl0,000.00).
The Issue
The only issue in this case is whether or not respondent Patiag should
be held administratively liable.
The Ruling of the Court
The Court agrees and adopts the findings and recommendation of the
OCA.
Time and again, the Court emphasized that Clerks of Court perform a
delicate function as designated custodians of the court's funds, revenues,
records, properties and premises. As such, they have the duty to immediately
deposit the various funds received by them to the authorized government
depositories for they are not supposed to keep funds in their custody. Such
functions are highlighted by OCA Circular Nos. 50-95 15 and 113-2004 16 and
Administrative Circular No. 35-2004 which mandate Clerks of Court to
timely deposit judiciary collections as well as to submit monthly financial
reports on the same. 17
In the same vein, Administrative Circular No. 3-2000, 18 commands
that all fiduciary collections shall be deposited immediately by the Clerk of/
14
Rollo (P-13-3122), pp. 187-188.
15
(4) All collections from bail bonds, rental deposits, and other fiduciary funds shall be deposited
within twenty-four (24) hours by the Clerk of Court concerned, upon receipt thereof with the Land Bank of
the Philippines.
16
The circular prescribes that all monthly reports of collections, deposits and withdrawals shall be
submitted not later than the 10th day of each succeeding month to the Chief Accountant of the Supreme
Court.
17
Office of the Court Administrator v. Viesca, 758 Phil. 16, 24-25 (2015).
18
II. Procedural Guidelines
A. Judiciary Development Fund
xxxx
3. Systems and Procedures
xxxx
c. In the RTC, MeTC, MTCC, MTC, MCTC, SOC and SCC. - The daily collections for
the Fund in these courts shall be deposited everyday with the nearest LBP branch for the account
of the Judiciary Development Fund, Supreme Court, Manila - SAVINGS ACCOUNT NO. 0591-
0116-34 or if depositing daily is not possible, deposits for the Fund shall be at the end of every
month, provided, however, that whenever collections for the Fund reach P500.00, the same shall
be deposited immediately even before the period above-indicated.
xxxx
Collections shall not be used for encashment of personal checks, salary checks, etc. x x x
xxxx
B. General Fund (GF)
(I.) Duty of the Clerks of Court, Officers-in-Charge or Accountable Officers.-The
Clerks of Court, Officers-in-Charge of the Office of the Clerk of Court, or their accountable duly-
Decision 8 A.M. Nos. 11-6-60-MTCC
and P-13-3122
Court concerned, upon receipt thereof, with an authorized government
depository bank. Supreme Court Circular No. 13-92 directs that all fiduciary
collections be deposited immediately by the Clerk of Court concerned, upon
receipt thereof, with an authorized depository bank while SC Circular No.
5-93 provides that the Land Bank of the Philippines is designated as the
authorized government depository. 19
From the foregoing, it is evident that the respondent showed
carelessness or indifference in the performance of her duties. The record
showed that aside from her lame excuses, she offered no veritable
explanation nor satisfactory reason to support the shortages that she
incurred. Her failure to comply with the aforementioned Court Circulars and
other relevant rules designed to promote full accountability for public funds,
as well as her failure to manage and properly document the cash collections
allocated for the various court funds, constitute serious dishonesty, grave
misconduct and serious neglect of duty which undermine the public's faith in
courts and in the administration of justice as a whole, and render her unfit
for the position of clerk of court. 20 Respondent's willingness to pay her
shortages will not absolve her from the consequences of her wrongdoing.
Meanwhile, the fact that Patiag reached the compulsory retirement age
on May 13, 2014, 21 did not render these cases moot, let alone release her
from whatever liability she had incurred while in active service. Since the
penalty of dismissal from the service is no longer imposable, a fine can be
imposed instead, and its amount is subject to the sound discretion of the
Court. 22 Section 51 (d) 23 of Rule X of the Revised Uniform Rules on
Administrative Cases in the Civil Service provides that fine as a penalty
shall be in an amount not exceeding the salary for six months of the
respondent. Thus, a fine equivalent to Patiag's salary for her last six months
in the service to be deducted from whatever accrued leave benefits remained
for her is deemed in order, but with accessory penalties of dismissal from
service, i.e., forfeiture of all retirement benefits, excluding accrued leave
credits, and with prejudice to re-employment in the government, including
government-owned or controlled corporations.
l
authorized representatives designated by them in writing, who must be accountable officers, shall
receive the General Fund collections, issue the proper receipt therefor, maintain a separate cash
book properly marked CASH BOOK FOR CLERK OF COURT'S GENERAL FUND AND
SHERIFF'S GENERAL FUND, deposit such collections in the manner herein prescribed, and
render the proper Monthly Report of Collections and Deposits for said Fund.
19
Office of the Court Administrator v. Atty Paduganan-Penaranda, et al., 630 Phil. 169, 178(2010).
20
Office of the Court Administrator v. Panganiban, 798 Phil. 216, 224 (2016).
21
Rol/o(A.M.No.P-13-3122),p. lll.
22
Office of the Court Administrator v. Guan, 764 Phil. 1, 12(2015).
23
Section 51. Duration and effect of administrative penalties. - The following rules shall govern in
the imposition of administrative penalties:
xxxx
d. The penalty of fine shall be in an amount not exceeding six (6) months salary of respondent.
The computation thereof shall be based on the salary rate of the respondent when the decision
becomes final and executory.
Decision 9 A.M. Nos. 11-6-60-MTCC
and P-13-3122
As to Mendoza, since he had already complied with the Court's
Resolution 24 dated November 20, 2017 to liquidate his cash advances of Ten
Thousand Pesos (Pl 0,000.00), the case against him should be considered
closed and terminated; and his withheld salaries and allowances should be
released.
Indeed, the safeguarding of funds and collections, the submission to
this Court of a monthly report of collections for all funds, and the proper
issuance of official receipts for collections are essential to an orderly
administration of justice. 25 We emphasize that all court employees, such as
respondent, must adhere to high ethical standards to preserve the court's
good name and standing. 26 They should be examples of responsibility,
competence and efficiency, and they must discharge their duties with due
care and utmost diligence since they are officers of the court and agents of
the law. 27 They must bear in mind that the image of a court of justice is
necessarily mirrored in the conduct, official or otherwise, of the men and
women who work there. 28
WHEREFORE, the Court finds respondent ERLINDA T. PATIAG,
former Clerk of Court IV, Municipal Trial Court in Cities, Gapan, Nueva
Ecija, GUILTY of serious dishonesty, grave misconduct and gross neglect
of duty with FORFEITURE of all retirement benefits, excluding accrued
leave credits, and with prejudice to re-employment in the government,
including government-owned or controlled corporations.
This Court fmiher resolves to:
1. ORDER respondent TO PAY A FINE equivalent to her salary for
six months computed at the salary rate of her former position to be
deducted from the monetary value of her earned leave credits
and/or other retirement benefits;
2. DIRECT the Employees' Leave Division, Office of
Administrative Services-OCA, to compute the respondent's earned
leave credits;
3. DIRECT the Finance Division, Financial Management Office-
OCA, to compute the withheld salaries of respondent and
PROCESS the monetary value of her earned leave credits and
withheld salaries, dispensing with the usual documentary!
24
Rollo (A.M. No. 11-6-60-MTCC), pp. 83-84.
25
Re: Financial Report on the Audit Conducted in the Municipal Circuit Trial Court, Apa/it-San
Simon, Pampanga, 574 Phil. 218, 238 (2008).
26
Joven v. Caoili, A.M. No. P-17-3754 (Formerly OCA IPI No. 14-4285-P), September 26, 2017,
840 SCRA 552, 559.
27
Dennis Patrick Z. Perez, Presiding Judge, Branch 67, Regional Trial Court, Binangonan, Rizal, v.
Almira l. Roxas, Clerk III, Branch 67, Regional Trial Court, Binangonan, Rizal, A.M. No. P-16-3595
(Fonnerly OCA LP.I. No. 15-4446-P), June 26, 2018.
28
Office of the Court Administrator v. Savadera, et al., 717 Phil. 469, 488(2013).
Decision 10 AM. Nos. 11-6-60-MTCC
and P-13-3122
requirements, and whatever remains therefrom after deducting the
fine imposed upon her, APPLY the same to the following
shortages and RELEASE the remaining balance, if any:
Name of Fund Period Covered Amount
Judiciary Development March 1985 to ?593,053.44
Fund (JDF) 29 February 2012
Special Allowance for the November 11, 2003 968,673.18
Judiciary Fund (SAJF) to
February, 29 2012
Mediation Fund (MF) March 1 to 18, 2012 2,000.00
UNEARNED Interest due 52,964.47
to delayed remittances
After submission of the Additional JDF 621.20
missing eight (8) O.R. Shortage
booklets
TOTAL ACCOUNTABILITY Pl,617,312.29
4. ORDER respondent to pay any remainder of the fine and/or
restitute any remaining shortages in case the monetary value of
her earned leave credits and/or other benefits would not be
sufficient to cover the same;
5. INSTITUTE the proper criminal or civil action against Patiag if
no full restitution can be done from her back salaries and
monetary value of her accrued leave credits; and
6. FURTHER DIRECT the Finance Division, Financial
Management Office-OCA, to RELEASE the retirement benefits
and the monetary value of the accrued leave credits of SHERIFF
IV ERNESTO MENDOZA, which he is entitled to, since he had
fully complied with the directive of the Court contained in the
Resolution dated June 3, 2013.
SO ORDERED. The complete documentary requirements must be submitted
to and received by the OCA not earlier than two (2) months before the intended departure
date but not later than ten (10) working days before said date. Otherwise, the request shall
not be entertained.
Decision 11 A.M. Nos. 11-6-60-MTCC
and P-13-3122
(on official business)
DIOSDADO M. PERALTA
Associate Justice Associate Justice
11,(},._ llt,M/
ESTELA l\,{: }ERLAS-BERNABE
Associate Justice Associate Justice
~
FRANCIS H. JARDELEZA
/ Associate Justice
S. CAGUIOA ANDREJ-it,ffEYES, JR.
AssJciJ{~ Justice
SE!RE~✓
Associate Justi~;R.
(on official business)
RAMON PAULL.HERNANDO
Associate Justice Associate Justice
,,,,,---
AMY,~JAVIER HENRI
Associate Justice
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