Case Digest (A.M. No. P-17-3746)
Facts:
In the case titled "Re: Report on the Financial Audit Conducted at the Municipal Trial Court in Cities, Cebu City, A.M. No. P-17-3746," the administrative complaints were addressed against three officials from the Municipal Trial Court in Cities of Cebu City. The audit was initiated following Audit Observation Memorandum No. 15-001, dated October 16, 2015, issued by the Commission on Audit (COA), which found that not all collections by the court were deposited on time. A financial audit was conducted from November 22, 2015, to October 21, 2016, to assess the financial accountability of the contenders: Teresita S. Remotigue (previous Clerk of Court IV), Josefina A. Uy (Clerk of Court III/Officer in Charge for a short period), and Josephine R. Teves (Clerk of Court IV). The key objectives of the audit included verifying the accuracy of cash transactions, ensuring adherence to deposit schedules for judiciary funds, and reviewing filing fees collections.
During the audit,
Case Digest (A.M. No. P-17-3746)
Facts:
- Background and Initiation of the Audit
- The case arises from an Audit Observation Memorandum No. 15-001 dated October 16, 2015, issued by the Commission on Audit, Regional Office No. VII, Cebu City, which noted that not all collections of the Municipal Trial Court in Cities (MTCC), Cebu City were deposited on time.
- To address the irregularities, a team composed of representatives from the Fiscal Monitoring Division (FMD), Court Management Office (CMO), and Office of the Court Administrator (OCA) was formed.
- The team conducted a financial audit in the Office of the Clerk of Court (OCC) at MTCC, Cebu City, covering the period from November 22, 2015 to October 21, 2016.
- Accountability Period and Officials Involved
- The audit covered the following accountability periods and officials:
- Teresita S. Remotigue (Clerk of Court IV) from February 1, 2000 to July 31, 2008;
- Josefina A. Uy (Clerk of Court III/Officer in Charge) from August 1 to October 31, 2008;
- Josephine R. Teves (Clerk of Court IV) from November 1, 2008 up to the date of the audit report.
- The objectives of the audit included verifying the accuracy and regularity of cash transactions, ensuring full and timely deposit of judiciary fund collections, and ensuring filing fees were collected in accordance with administrative circulars, as well as assisting in proper bookkeeping and accounting of judiciary funds.
- Findings on Alterations and Tampering
- The team compared official receipts from the Property Division, Office of the Administrative Services (OAS) and OCA with those dispatched by the MTCC.
- In examining duplicate and triplicate copies of the official receipts, particularly those for the Judiciary Development Fund (JDF) and the Special Allowance for the Judiciary Fund (SAJF), it was discovered that alterations and erasures had been made.
- During interviews, Alma Bella S. Macaldo (Records Officer II) and Josefina P. Veraque (Cashier I) admitted to altering these copies by understating the amount collected and modifying the transaction dates.
- Photocopies of the altered duplicate copies were surrendered by Macaldo, confirming the tampering.
- Discrepancies and Shortages Identified
- The audit revealed significant discrepancies between the amounts collected and the amounts reported in the official cashbook and triplicate copies of issued official receipts for cases filed from January 2013 to December 2015.
- The discrepancies covered several items:
- JDF and SAJF amounts for BP 22 cases, as well as for ordinary cases in different years (2013-2015).
- The total discrepancy over the period amounted to P5,405,174.60.
- A noted shortage in the Fiduciary Fund was also identified:
- The unwithdrawn Fiduciary Fund was P48,959,451.94, whereas the bank balance as of October 31, 2015, was P48,930,742.88; a shortage of P28,709.06 was thus noted.
- Admissions, Restitution, and Allegations
- On December 4, 2015, Macaldo executed an affidavit admitting that she received funds from Veraque and used the money for personal purposes.
- Subsequent restitution efforts included:
- From December 28, 2015 to September 28, 2016, Veraque restituted P550,000.00 each for the JDF and SAJF.
- Macaldo paid P118,000.00 each for the same funds from September 28, 2016 to May 19, 2017.
- Both Macaldo and Veraque later requested an extension to pay the remaining balances and executed an affidavit stating that Clerk Teves had no knowledge of the tampering.
- Comments from the accused:
- Veraque claimed she had no part in the preparation or tampering of the receipt copies and relied on transmittals from cash clerks.
- Macaldo admitted to receiving money, citing personal reasons such as her father’s medication and her children’s support, and requested that the balance be deducted from her salary.
- Teves defended herself by asserting that she had taken appropriate measures to safeguard the funds and that the tampering was sophisticated enough to be uncovered only by professional auditors.
- Audit Recommendations and Subsequent Court Orders
- The audit report recommended disciplinary actions against the erring employees:
- Alma Bella S. Macaldo and Josefina P. Veraque were recommended to be found guilty of dishonesty and gross misconduct, dismissed from service, forfeiture of withheld salaries and benefits (excluding the monetary equivalent of earned leave credits), and to be directed to restitute the remaining shortage.
- Josephine R. Teves was directed to explain in writing her failure to safeguard the funds, suspended indefinitely for gross neglect of duty, and ordered to restitute the shortage in the Fiduciary Fund.
- Additional measures included:
- Issuance of a writ of preliminary attachment against the properties of Macaldo and Veraque.
- Holding a departure order against all three accused to prevent them from traveling abroad.
- Directions for the Financial Management Office and the Legal Office of the OCA to compute earned leave credits, withhold benefits, and coordinate with the Government Service Insurance System (GSIS) for appropriate claims.
- The Court Administrator’s memorandum adopted these recommendations, leading to the Court’s final decision.
Issues:
- Authenticity and Legality of the Financial Records
- Whether the alterations and tampering of official receipts by Macaldo and Veraque, which resulted in underreporting the actual funds collected, constitute dishonesty and gross misconduct.
- Whether the discrepancies between the recorded collections and the deposited amounts, including the identified shortage in the Fiduciary Fund, prove misappropriation of public funds.
- Accountability of the Involved Personnel
- Whether Macaldo and Veraque, due to their direct involvement in altering official documents and delaying deposits, are liable for grave misconduct and dishonesty.
- Whether Teves, as the supervising official, is liable for simple neglect for failing to institute controls that could have detected or prevented the irregularities.
- Adequacy of Supervision and Internal Controls
- Whether the internal controls and delegation of responsibilities at the MTCC effectively safeguarded the judiciary funds.
- To what extent the supervisory lapses contributed to the misappropriation and irregularities noted in the audit report.
- Justifiability of Personal Circumstances as a Defense
- Whether the personal financial hardships cited by Macaldo can be considered mitigating factors in the assessment of her guilt.
- Whether reliance on personal circumstances can excuse the mishandling of public funds and the breach of public trust.
- Appropriate Disciplinary Measures
- Whether the recommended disciplinary sanctions—including dismissal, forfeiture of benefits, and restitution—are proportionate and sufficient given the gravity of the offenses.
- Whether the imposition of suspension for Teves, as well as strict directions for restitution and further administrative actions, meets the standards of accountability under the prevailing rules and jurisprudence.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)