KINGSTON – Ulster County Commissioner of Finance Burt Gulnick who also serves as treasurer for the Hurley Recreation Association resigned from the county on Wednesday after being accused of stealing funds from the Hurley Recreation Association. Ulster Comptroller March Gallagher immediately began an internal investigation into Gulnick’s recordkeeping of Ulster County money that he was responsible for.
“Given the seriousness of the allegations, as they relate to cash oversight and management, I immediately reached out to the County Executive’s Office and began an internal investigation. While the allegations are presently being investigated by state and local authorities, it is imperative that the County immediately take the appropriate steps to safeguard Ulster County taxpayers’ more than $214 million in cash assets,” Comptroller Gallagher said.
Gallagher’s office recently voiced specific concerns about the absence of internal controls over cash receipts in a draft audit circulated to management last week that identified the potential for theft and error in cash collections within the County. The cash collections are in delinquent real property tax collection which is controlled by the Fiance Commissioner’s office, which was run by Gulnick. Gallagher expressed concern that her office does not have access to tax collection systems despite asking for access for the past year. Some of the requested data was provided to Gallagher by the county executive’s office on Wednesday.
In a statement, Gallagher expressed her frustration in not being provided access to all financial records for the county, despite being the county’s fiscal monitor. Noting that many requests are one year old, she also pointed out that many requests have gone unanswered, including ones directed to the county executive.
Gallagher vowed to work with County Executive Metzger’s office to verify that Ulster County did not suffer any financial losses while Gulnick was the head of the Finance department.
“As the Comptroller, it is my duty to identify areas of concern and to safeguard County assets. I have communicated red flags and internal controls concerns and have repeatedly been denied access to systems and information. The extreme nature of these allegations and their impacts on internal controls needs to be immediately addressed by the administration,” Gallagher exclaimed.
Following Gulnick’s departure from his position, County Executive Metzger issued a brief statement indicating that she has asked the county legislature for assistance in hiring an outside auditing firm to “conduct a rigorous review of the county finances as well as our internal controls.” Metzger also announced the appointment of Ken Juras, the county’s Director of Budget and Innovation, as Interim Commissioner of Finance.
The Hurley Recreation Association is a privately run organization and has no affiliation with the Town of Hurley. Town Supervisor Melinda McKnight, issued a statement on Wednesday, saying “The Hurley Recreation Association, commonly known as Hurley Rec, is neither operated nor funded by the Town of Hurley. Its name is derived merely from the fact that it is located within the town,” adding “Hurley Rec, a swimming and outdoor recreation park at 50 Dewitt Mills Road, is a nonprofit organization that is funded by members’ dues and guest fees, and is managed by a Board of Directors.”
