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Forensic Examination of Former Ulster County Finance Commissioner

Instructions

In Albany, a comprehensive forensic examination and investigation into the activities of former Ulster County Commissioner of Finance Burton Gulnick Jr. have yielded significant findings. State Comptroller Thomas DiNapoli's office conducted a 19-month probe that revealed no evidence of crimes during Gulnick's tenure but identified weaknesses in county procedures that could expose the county to fraud risks.

Key Findings and Recommendations

Supervisory Adjustments and Documentation

It is crucial that all supervisory adjustments or entries to employee timesheets and hours worked are adequately supported with appropriate documentation indicating the reason for the change. This ensures transparency and accountability in the payroll process. Without proper documentation, there is a potential for errors and potential misuse of funds.

For example, imagine a situation where a supervisor makes an adjustment to an employee's timesheet without clearly stating the reason. This could lead to confusion and disputes down the line. By requiring proper documentation, such issues can be avoided and the integrity of the financial system is maintained.

Personnel Policy Manual Revisions

The Personnel Policy Manual section related to management accruals and payout calculations needs to be reviewed and revised. This is to ensure equal application of the policy throughout the county. Inconsistencies in payout calculations can lead to unfairness and potential financial discrepancies.

For instance, if one department applies a different calculation method than another, it can create confusion and dissatisfaction among employees. By standardizing the policy and ensuring its consistent application, the county can avoid such problems and operate more efficiently.

Estate Administration Policies

Policies and procedures over the administration of estates should be developed. This includes recordkeeping and reporting requirements, disclosure of conflicts, and vendor procurement. Maintaining proper estate files with sufficient supporting documentation and accurately reflecting disbursements and commission revenues in the county's financial accounting system is essential.

Consider a case where an estate is not properly managed, and there is a lack of clear recordkeeping. This can lead to difficulties in tracking assets and disbursing funds correctly. By implementing comprehensive policies and procedures, the county can ensure the proper handling of estates and safeguard county assets.

Parking Fee Collection Policies

The policies and procedures for the collection of parking fees at the county parking lot need to be reviewed to maximize revenue and safeguard cash. This involves ensuring efficient collection methods and proper handling of funds.

For example, implementing automated payment systems can streamline the collection process and reduce the risk of cash handling errors. Additionally, regular audits of parking fee collections can help identify any potential issues and ensure compliance with regulations.

Segregation of Duties

Segregation of duties is crucial for all points of cash collection and reporting, including parking lot and real property installment payments. This helps prevent fraud and ensures the integrity of financial transactions.

Imagine a situation where one person is responsible for both collecting cash and recording the transactions. There is a higher risk of fraud in such a scenario. By separating these duties, it becomes more difficult for individuals to manipulate the system and increases the overall security of the county's finances.

In response to these findings, County Executive Jen Metzger and other county officials have taken proactive steps. Supervisory employees have been notified to enter justifications in the "notes" field for manual time punches. The personnel director will issue guidance to clarify payout calculation procedures, and the commissioner of finance will develop written, standardized policies for estate administration. The county will also ensure proper estate file maintenance and review parking fee collection policies. Additionally, segregation of duties will be implemented for all cash collection and reporting points.These measures demonstrate the county's commitment to addressing the identified weaknesses and strengthening financial practices to prevent potential fraud in the future.

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