The Supreme Court ruled that a Clerk of Court II, Clarita R. Perez, was guilty of grave misconduct for failing to remit judiciary funds and submit monthly reports on time. Despite mitigating circumstances, such as 37 years of unblemished service and remorse, the Court emphasized the importance of the responsibilities entrusted to court personnel in handling public funds, and it reinforced strict adherence to financial regulations to maintain public trust in the judiciary.

When Personal Hardship Leads to Public Trust Betrayal: Can Compassion Justify Misconduct?

This administrative case arose from a financial audit of Clarita R. Perez, Clerk of Court II of the Municipal Circuit Trial Court (MCTC) of San Teodoro-Baco-Puerto Galera, Oriental Mindoro. The audit, conducted by the Court Management Office, Office of the Court Administrator (CMO-OCA), revealed significant cash shortages and unremitted collections. The audit was initiated due to Perez’s non-remittance of collections and her failure to submit monthly financial reports, raising concerns about the management of court funds.

The audit report disclosed that Perez had cash inventory shortages amounting to P34,313.80 due to undeposited collections from October 2011 to April 23, 2012. Furthermore, she had shortages in collected fees and under-remittances totaling P151,412.00 across various funds, including the Judiciary Development Fund (JDF), Special Allowance for the Judiciary Fund (SAJF), Mediation Fund, and Fiduciary Fund. These discrepancies highlighted a serious breach of her responsibilities as the custodian of court funds.

Further investigation revealed additional infractions. Perez failed to collect and issue receipts for marriages solemnized by Judge Edgardo M. Padilla, resulting in uncollected fees of P11,400.00. She also neglected to issue and collect receipts for notarized documents, leading to an uncollected amount of P42,100.00 intended for the SAJF account. In addition, she failed to properly document cash bond fees for twenty-eight criminal cases, resulting in uncollected amounts of P8,400.00 for the SAJF account and P5,400.00 for the JDF account. Furthermore, Perez failed to submit her Monthly Reports of Collections, Deposits, and Withdrawals, compounding her administrative violations.

Perez attempted to rectify her actions by remitting the shortages for the JDF, SAJF, and Mediation Fund shortly after the audit team’s cash count. The uncollected marriage solemnization fees were also paid around the same time. However, these actions did not negate the initial violations and the serious nature of her misconduct. The Supreme Court took cognizance of the audit findings and initiated formal administrative proceedings against Perez, underscoring the gravity of her offenses.

In response, the Court issued a Resolution on July 9, 2012, adopting the recommendations of the OCA. The Court ordered the docketing of the report as a regular administrative case, suspended Perez pending resolution, and imposed a P10,000.00 fine. Perez was also directed to explain her infractions and to pay and deposit specific amounts to their respective accounts, including unearned interest of P11,216.78 computed at six percent per annum for the belatedly deposited judiciary funds. The specific breakdown of these amounts is as follows:

Fund	Amount
JDF	P4,491.63
SAJF	P6,725.15
Total	P11,216.78

The Court also required her to remit P42,100.00 for uncollected notarial fees to the SAJF, and P8,400.00 to the JDF and P5,400.00 to the SAJF for uncollected cash bond fees. These directives were aimed at rectifying the financial irregularities and ensuring compliance with established protocols. The resolution underscored the Court’s commitment to maintaining accountability and integrity within the judiciary.

In her defense, Perez explained that her failure to remit collections on time was due to attending to her brother, who was diagnosed with a brain tumor. She admitted to using court collections for his medical expenses. Perez stated that after her brother’s death on February 25, 2011, she used his insurance proceeds to repay the converted amounts and promised not to repeat the infraction. She also claimed to have complied with the Court’s Resolution by paying and depositing the required amounts and submitting her overdue Monthly Reports.

Perez filed a Motion for Early Resolution before the OCA, requesting the lifting of her suspension and the release of her withheld salaries, citing her compliance with all the Court’s directives. She attached proofs of deposits, including P5,600.00 to the SAJF, P8,100.00 and P300.00 to the JDF, P11,220.00 to the JDF for unearned interest, and P42,100.00 to the SAJF for uncollected notarial fees, along with P10,000.00 for the imposed fine. Perez presented a Certification from the Fiscal Monitoring Division, CMO-OCA, confirming these restitutions, admitting her failure to submit reports and deposit collections on time, and pleading for leniency based on her 37 years of government service and this being her first offense. The Court then referred the matter to the OCA for evaluation and recommendation.

The OCA’s Memorandum found Perez guilty of misconduct for failing to timely remit judiciary funds and submit Monthly Reports. It recommended a P40,000.00 fine and a stern warning against future similar acts. The Supreme Court agreed with the OCA’s findings, emphasizing the critical role of Clerks of Court as custodians of court funds and administrative officers responsible for ensuring proper financial procedures. The Court reiterated that any failure to perform these duties faithfully makes them liable for any loss, shortage, or impairment of funds and property, thus reinforcing accountability and integrity within the judicial system.

The SC Circular No. 13-92 mandates clerks of courts to immediately deposit fiduciary collections with an authorized government depository bank. SC Administrative Circular No. 5-93 designates the Land Bank of the Philippines (LBP) as the authorized depository for the JDF. Section 3 and 5 of the SC Administrative Circular No. 5-93 emphasizes the responsibilities of court clerks, officers-in-charge, or accountable officers regarding the handling of Judiciary Development Fund (JDF) collections:

3. 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 authorized representatives designated by them in writing, who must be accountable officers, shall receive the Judiciary Development Fund collections, issue the proper receipt therefor, maintain a separate cash book properly marked x x x, deposit such collections in the manner herein prescribed and render the proper Monthly Report of Collections for said Fund.

The circular further specifies the systems and procedures for depositing JDF collections in various courts:

c. In the RTC, SDC, MeTC, MTCC, MTC, MCTC and SCC. – The daily collections for the Fund in these courts shall be deposited every day with the local or nearest LBP branch “For the account of the Judiciary Development Fund, Supreme Court, Manila Savings Account No. 159-01163-1; or if depositing daily is not possible, deposits [of] the Fund shall be every second and third Fridays and 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 days above indicated.

Where there is no LBP branch at the station of the judge concerned, the collections shall be sent by postal money order payable to the Chief Accountant of the Supreme Court, at the latest before 3:00 P.M. of that particular week.

The circular also mandates the rendition of monthly reports, ensuring transparency and accountability in the management of judiciary funds:

d. Rendition of Monthly Report. – Separate “Monthly Report of Collections” shall be regularly prepared for the Judiciary Development Fund, which shall be submitted to the Chief Accountant of the Supreme Court within ten (10) days after the end of every month, together with the duplicate of the official receipts issued during such month covered and validated copy of the Deposit Slips.

The aggregate total of the Deposit Slips for any particular month should always equal to, and tally with, the total collections for that month as reflected in the Monthly Report of Collections.

If no collection is made during any month, notice to that effect should be submitted to the Chief Accountant of the Supreme Court by way of a formal letter within ten (10) days after the end of every month.

The Court emphasized that Perez not only delayed the remittance of fiduciary collections but also used the money for personal use, violating the trust placed in her. While acknowledging her difficult personal circumstances, the Court stated that her actions could not be excused. As custodian of the court’s funds, Perez was entrusted with implementing regulations regarding fiduciary funds and was accountable for any loss or impairment of said funds. The Court made it clear that she should not have kept those funds in her possession or appropriated them for personal use.

The Court also noted that Perez should have observed SC Circular No. 13-92 diligently. Since there was no LBP branch near the court’s station, she should have used Postal Money Orders (PMOs). The audit team found that PMOs were always available at the Local Post Office, contrary to Perez’s claims. The Court further stated that Perez’s subsequent restitution of the amounts did not alter the fact that she was remiss in her duties, with the shortages and delays constituting gross neglect of duty for which she was administratively liable. By failing to timely remit the collections, Perez violated the trust reposed in her and deprived the Court of potential interest earnings.

The Court, however, also considered mitigating circumstances, such as Perez’s 37 years of unblemished government service, her remorse, cooperation with the audit team, and immediate production of shortages upon demand. Referencing jurisprudence that refrains from imposing actual penalties in light of mitigating factors, the Court cited conditions like length of service, acknowledgement of transgressions, family circumstances, and humanitarian considerations. The court also acknowledged the principle that where a less punitive penalty would suffice, the consequences should not be severe, considering the hardships on wage earners and their families. In consideration of these factors, the Court deemed a fine of P40,000.00 an appropriate penalty.

FAQs

What was the main issue in this case?	The main issue was whether Clarita R. Perez, Clerk of Court II, was guilty of misconduct for failing to remit judiciary funds and submit monthly reports on time.
What funds were involved in the shortages?	The shortages included funds from the Judiciary Development Fund (JDF), Special Allowance for the Judiciary Fund (SAJF), Mediation Fund, and Fiduciary Fund.
What was Perez’s defense?	Perez claimed her failure to remit funds was due to her brother’s illness and medical expenses, for which she used the court’s collections, later repaying them with insurance proceeds.
Did Perez eventually return the missing funds?	Yes, Perez eventually restituted the missing amounts after the financial audit was conducted, but this did not negate her initial misconduct.
What penalty did the Supreme Court impose?	The Supreme Court found Perez guilty of grave misconduct and ordered her to pay a fine of P40,000.00, with a stern warning against future similar acts.
What is the role of a Clerk of Court?	Clerks of Court are custodians of court funds, revenues, records, and properties, making them responsible for ensuring proper financial procedures and accountability.
What is SC Circular No. 13-92?	SC Circular No. 13-92 mandates clerks of courts to immediately deposit their fiduciary collections with an authorized government depository bank.
What mitigating circumstances were considered?	The Court considered Perez’s 37 years of unblemished service, remorse, cooperation with the audit, and difficult family circumstances.
Why was a fine imposed instead of a harsher penalty?	The Court took into account the mitigating circumstances and the principle that a less punitive penalty should be considered if sufficient.

This case serves as a crucial reminder of the high standards of conduct expected from court personnel, particularly those handling public funds. The judiciary’s integrity relies on the ethical behavior and diligent performance of its officers, and any deviation from these standards can have serious consequences.

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Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: THE OFFICE OF THE COURT ADMINISTRATOR VS. CLARITA R. PEREZ, A.M. No. P-12-3074, March 17, 2014