ALBANY – A forensic examination and investigation of former Ulster County Commissioner of Finance Burton Gulnick Jr. found no evidence of any crimes committed by Gulnick while he served in his government role, but did find weaknesses in county procedures that could leave it vulnerable to fraud, State Comptroller Thomas DiNapoli said Friday.

The comptroller said, however, his office has made several recommendations to the county to strengthen financial practices and guard against potential fraud in the future.

“It was pretty shocking to learn less than three months after coming into office that the county’s long-time top finance official was accused of pilfering funds from another organization, and I was very worried that he could have exploited his county position to steal from taxpayers,” said County Executive Jen Metzger. “It comes as a great relief that the State Comptroller’s Office found no evidence of fraud after an exhaustive 19-month investigation, and the comprehensiveness of the probe gives us great confidence in the findings.”

I thank Comptroller Tom DiNapoli and his team for their assistance in helping us to bring closure to this chapter and I will continue to do everything in my power to ensure the highest level of fiscal responsibility in Ulster County government.”

From the day she took office, County Comptroller March Gallagher said Gulnick “routinely resisted my information and access requests.” She said she will work with county officials to address the comptroller’s internal controls recommendations, particularly in the areas of cash collection and recording.

In February 2024, Gulnick was sentenced to two years in jail after pleading guilty to stealing over $100,000 total from local not-for-profit, Hurley Recreational Association, and from former County Executive Michael Hein’s campaign account. Unrelated to his positions with the association or the campaign, at the time of his crimes Gulnick served as the county’s finance commissioner.

While no evidence of fraud was discovered, DiNapoli’s investigators found areas where the county could improve its policies and procedures to strengthen controls and safeguard county assets.

• Ensure all supervisory adjustments or entries to employee timesheets and/or hours worked be adequately supported with appropriate documentation indicating the reason for the adjustment, entry, or modification;
• Review and revise the Personnel Policy Manual section related to management accruals and payout calculations to ensure equal application of the policy throughout the county;
• Develop policies and procedures over the administration of estates. This should include recordkeeping and reporting requirements, disclosure of conflicts, and vendor procurement for the estates;
• Ensure an estate file with sufficient supporting documentation is maintained for each estate administered by the county, and disbursements from each estate, as well as commission revenues, if applicable, are properly reflected in the county’s financial accounting system;
• Review the policies and procedures for the collection of parking fees at the county parking lot to maximize revenue and safeguard cash; and
• Ensure segregation of duties for all points of cash collection and reporting, including parking lot and real property installment payments.

In response, Metzger said:

• All supervisory employees were notified that they must enter a justification in the “notes” field for all manual time punches.
• The personnel director, with input from the county comptroller, will issue guidance to clarify payout calculation procedures and ensure a uniform application of those procedures across all county departments.
• The commissioner of finance will develop written, standardized policies and procedures for the administration of estates.
• The county will ensure all estates files contain sufficient supporting documentation, and all commission revenues are properly reflected in the county’s financial system.
• The county will review its policies and procedures for the collection of parking fees at the County Office Building.
• The county will ensure segregation of duties for all points of cash collection and reporting with regard to parking lot fees and real property installment payments.

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