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HomeMy WebLinkAbout1135 GulnacIn Re: Carolyn Gulnac STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 File Docket: X -ref: Date Decided: Date Mailed: Before: Daneen E. Reese, Chair Austin M. Lee, Vice Chair Julius Uehlein Louis W. Fryman John J. Bolger Frank M. Brown Susan Mosites Bicket 98- 044 -C2 Order No. 1135 8/30/99 9/7/99 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 seq., by the above - named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was untimely filed and a hearing was deemed waived. The record is complete. Effective December 15, 1998, Act 9 of 1989 was replaced by the Public Official and Employee Ethics Act ( "Ethics Act "), Act 93 of 1998, Chapter 11, 65 Pa.C.S. § 1 101 ems., which essentially repeats Act 9 of 1989 and provides for the completion of pending matters under that Act. This adjudication of the State Ethics Commission is issued under Act 93 of 1998 and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with the Ethics Act. Any person who violates confidentiality of the Ethics Act is guilty of a misdemeanor subject to a fine of not more than $ 1,000 or imprisonment for not more than one year. Confidentiality does not preclude discussing this case with an attorney at law. Gulnac, 98- 044 -C2 Page 2 I. ALLEGATION: Carolyn Gulnac, a public official /public employee, in her capacity as Tax Collector for Foster Township, McKean County, violated Sections 3(a) and 4(a) of the State Ethics Act (Act 9 of 1989) when she used the authority of her office for a private pecuniary benefit by converting tax payments collected by her office for her personal benefit; and when she failed file Statements of Financial Interests for calendar years 1995 and 1997. I1. FINDINGS: 1. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that Carolyn Gulnac violated provisions of the State Ethics. Act. (Act 93 of 1998). 2. Upon review of the complaint the Investigative Division initiated a preliminary inquiry on May 27, 1998. 3. The preliminary inquiry was completed within sixty days. 4. On July 23, 1998, a letter was forwarded to Carolyn Gulnac, in c/o Gregory Henry, Esquire, by the Executive Director of the State Ethics Commission informing her that a complaint against her was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. P 487 031 843. b. The domestic return receipt bore the signature of B. Kubid with a delivery date of July 27, 1998. 5. On September 21, 1998, the Executive Director of the State Ethics Commission filed an application for a ninety day extension of time to complete the Investigation. 6. The Commission issued an order on October 8, 1998, granting the ninety day extension. 7. On November 30, 1998, the Executive Director of the State Ethics Commission filed an application for a ninety day extension of time to complete the Investigation. 8. _ The Commission issued an order on December 15, 1998, granting the ninety day extension. 9. Periodic notice letters were forwarded to Carolyn Gulnac in accordance with the provisions of the Ethics Law advising her of the general status of the investigation. 10. The Investigative Complaint was mailed to the Respondent on July 16, 1999. 11. Carolyn Gulnac has served as the Foster Township Tax Collector since May 4, 1987. a. Gulnac has been on a leave of absence since approximately February, 1998. Gulnac, 98- 04.4 -C2 Page 3 b. Gulnac's leave of absence was necessitated by her inability to reconcile real estate tax collections for the Bradford Area School District for 1997. 12. In her capacity as Foster Township Tax Collector, Gulnac is responsible for collecting real estate, personal property and per capita taxes for Foster Township, McKean County and the Bradford Area School District. 13. Gulnac's compensation as tax collector for Foster Township and McKean County is based on commissions. a. Gulnac's compensation from Foster Township was paid at a rate of 3 of township taxes collected. b. Gulnac's compensation from McKean County was paid at a rate of 2 1/4% of county taxes collected. 14. The Bradford Area School District compensated Gulnac based on the number of tax bills mailed. 15. Gulnac's compensation from the Bradford Area School District was paid per tax bill as follows: Tax Year 1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97 Rate Each $2.77 $2.88 $3.00 $3.00 $3.10 $3.20 $3.25 16. Gulnac received expense reimbursements from Foster Township and the Bradford Area School District for postage. a. Printing expenses were paid to the county by the taxing bodies. 17. Gulnac operated her tax office from space in the Foster Township Building. a. Gulnac paid the township for rental of this space. b. Gulnac was charged $100.00 per month from 1993 through November 1995 when the amount was increased to $1 10.00 per month. c. Gulnac was frequently late in making rent payments and did not turn over rent on a monthly basis, she would pay for several months to a year at a time. 18. The Township Code provides that the duly elected tax collector is responsible for the collection of all state, county, borough, school, institution district and other taxes levied within the township by the authorities empowered to levy taxes. 19. Municipal tax collectors utilize a tax duplicate to effectuate the collection of taxes. Gulnac, 98- 044 -C2 Page 4 20. A tax duplicate is an official list of all properties and persons taxable in a specific year. a. The duplicate indicates the amount of tax due and contains places for the recordation of payments of taxes and disposition of unpaid taxes. 21. The tax duplicate is prepared by the McKean County Tax Assessment Office. . a. The tax duplicate is then turned over to the tax collector who is responsible for its safekeeping. 22. The taxing district must make settlement with the tax collector for the current year's duplicate before a duplicate of any succeeding year can be delivered to the tax collector. 23. The McKean County Tax Assessment Office sends out the tax duplicate to be printed and bound and subsequently provides the tax duplicate for local tax collectors for utilization in the collection of that year taxes. a. Tax collectors receive the tax duplicate from the Assessment Office for the current year after filing the final return for the previous years tax collections. 24. The duplicate for county and township taxes is provided to the tax collector on or before March 1st of each year. a. Duplicates were available after the close of taxes for the previous year which were due by February 15th. b. Duplicates would not be issued unless all taxes owed were paid to the taxing bodies. c. Delinquent taxes would be turned over to the McKean County Tax Claim Bureau. d. The duplicate for school district taxes is provided to the tax collector on or before August 1st of each year. 1. Taxing district must make settlement with the tax collector for the current years duplicate before the duplicate for any succeeding year can be delivered. 25. As part of preparing the tax duplicate for Foster Township, the Tax Assessment Office would also prepare a recapitulation of the real estate taxes due the township, county and school district for the year in question. That recapitulation would include the real estate valuation as certified by the county assessor, the millage rate, the tax at face value due the Tax Collector, a discount of two percent (2 %) on all taxes levied, and a net tax due each taxing district based on the assumption that every taxpayer would take advantage of the two percent (2 %) discount. a. The recapitulation is provided to the tax collector for each year. b. The recapitulation mentioned above is forwarded by the Assessment Office to Gulnac. Gulnac, 98-044-C2 Page 5 c. Gulnac filed the recapitulation received from the Assessment Office on the inside cover of the real estate tax duplicate. 26. The County Property Assessment Board votes to certify the assessed valuation for each year for the particular municipality in question. a. The only time that the certified assessed valuation may be changed is through an official change order which, through requests and /or litigation of the taxpayer or county, revalues the property in question to a different taxable amount. b. Any such changes or revaluations were to be provided to Gulnac by McKean County and the Bradford Area School District in order that the tax duplicate could be changed accordingly. 27. The certified assessed valuations for Foster Township for the years 1993 through 1997 are as follows: 1993 1994 1995 1996 1997 $12,591,374.00 $ 12,926,709.00 $ 12,996,554.00 $ 12,989,154.60 $12,935,644.00 28. The total tax due is based on the assessed value multiplied by the millage. a. The millage is annually set by each taxing body (i.e. Foster Township, BASD and McKean County). 29. Tax duplicate additions and exonerations are factored into the assessment to determine the total taxes to be collected by Gulnac for each taxing body, each tax year. a. Additions and exonerations are generated by McKean County and approved by the BASD. b. Gulnac did not have the authority to independently make any changes to the amount of taxes to be collected. 30. The local tax collection law establishes the following discount and penalty schedule: a. Discount: at least 2% if the whole amount of the tax is paid within two months after the date of the tax bill. b. Payment at Face: the full amount of tax if paid during the two months following the end of the discount period. c. Penalty: up to 10% added to the face amount for all taxes not paid within four months after the date of the tax bill. 31. Tax collection periods for Foster Township during Carolyn Gulnac's years of service as tax collector are as follows: Gulnac, 98- 044 -C2 Page 6 a. Foster Township b. McKean County Discount March 1 to April 30 March 1 to April 30 c. Bradford Area School District August 1 to September Face May 1 to June 30 May 1 to June 30 Penalty After June 30 to January 31 of the following year After June 30 to January 31 of the following year October 1 to After Dec. 1 to 30 November 30 January 31 of the following year 32. Collection periods for township /county and school district per capita taxes are the same as the real estate collection periods. a. Per capita tax bills are mailed along with the real estate tax bills. 33. As tax collector, Carolyn Gulnac was responsible for issuing tax notices to residents of Foster Township for township, McKean County and Bradford Area School District taxes and was also responsible for the receipt of tax payments. 34. The local tax collection law requires the tax notice issued by the tax collector contain the following information: a. b. c. d. e. f. 9. h. 1. J. Date of the tax notice. Rate or rates of taxation. Valuation and identification of the real property of the taxpayer. Occupation valuation of the taxpayer, if any. The several amounts of real and personal property and personal taxes the taxpayer is billed for the current year. The total amount of taxes the taxpayer owes for the current year. A statement the taxes are due and payable. A request for payment of the taxes. Statement of the time and place where taxes can be paid. Dates for discount, face and penalty periods. 35. Tax collectors are required to keep accurate records and accounts of all funds collected as taxes. a. The tax collector must record each tax payment on the duplicate by marking such as paid with the amount and the date opposite the taxpayers name. A tax collector is required to make periodic reports to the taxing district such being due by the tenth day of each month for the previous month's activities. Gulnac, 98- 044 -C2 Page 7 b. The report is to list all taxes collected for the taxing district for the reported period. Said report is also to list the names of the taxpayers and amounts collected from each, including any discounts and penalties and the report must carry a total of all taxes collected for the reporting period. Each tax collector must file an annual report with the Department of Community Affairs, and of the Clerk of Court of Common Pleas. c. The report is to be accompanied by a payment for all taxes collected during the previous month. d. The report must be filed within sixty (60) days after the close of each calendar year. and must include the following information: 1. number of taxables 2. total amount of taxes of each type appearing on duplicates 3. amount of taxes of each type collected, separately for current and delinquent taxes 4. amount of money handled as treasurer of a jurisdiction, if applicable 5. salary received as tax collector and as treasurer, if applicable 6. percentage of commission received 7. compensation received in dollars 8. total gross amount of compensation received 9. itemized list of expenses payable out of gross compensation as tax collector and treasurer 10. itemized list of expenses payable directly by taxing districts 36. As early as 1990 Carolyn Gulnac was unable to reconcile tax accounts for the BASD. a. Each year from 1990 to 1997 she offered various reasons to BASD employees, including computer problems, assessment problems and bookkeeping errors as reasons for not reconciling. 37. Gulnac discussed her inability to reconcile the tax account with BASD business managers Jerry Moore, Kathy Kelly and employee Linda Sayers. a. Gulnac never requested assistance from the BASD to find the source of the problems. 38. In 1997 the Bradford Area School District (BASD) questioned Gulnac's tax collections. a. During the years 1990 to 1997 Gulnac repeatedly made late payments to the BASD after the February 15th deadline to balance and close the previous years tax accounts. Gulnac, 98- 044 -C2 - Page 8 39. On July 24, 1997, Gulnac was advised, in writing, by BASD Business Manager Kathy Kelly, that the school district would not sign any further tax forms without all payments being made. a. Kelly's letter indicated she was made aware that Gulnac's tax collections for the February 15, 1997, deadline were not correct. b. Kelly noted that payments were made through May to reconcile the February reports. c. Kelly advised Gulnac that since 1993 payments had been made from her throughout February to May of each year to balance reports filed with the county. d. Kelly's letter concluded by informing Gulnac that the BASD would no longer sign any forms unless they could be balanced to the amount paid to the district. 40. From at least 1987 through 1997 Gulnac made late payments to the BASD to balance and close tax accounts for each year. 41. Gulnac made late payments to the BASD from 1987 through 1997 as follows: Tax Year Date Paid Amount 1987 04/05/88 $49,499.28 04/11/88 $ 1,085.30 05/10/88 $ 572.46 1989 04/06/89 $83,550.68 04/10/89 $ 5,991.19 1990 04/06/90 $45,000.00 04/12/90 $ 3,389.64 1991 02/21/91 $ 9,348.59 1992 03/12/93 $52,400.10 04/05/93 $40,392.96 1993 02/16/94 .$84,945.00 03/14/94 $45,826.16 $50,058.67 1994 02/16/95 $73,400.25 03/10/95 $33,798.42 03/30/95 $10,626.00 04/13/95 $34,650.00 04/24/95 $41,044.06 1995 02/21/96 $32,282.25 04/13/96 $41,790.72 04/15/96 $52,500.00 04/29/96 $41,988.12 04/30/96 $10,511.87 Gulnac, 98- 044 -C2 Page 9 - 1996 04/17/97 $42.255.13 04/22/97 $52,500.00 05/08/97 $86,092.65 05/14/97 $ 7.35 1997 02/16/98 $73,454.20 42. The late payments made by Gulnac to the BASD coincided with tax payments Gulnac was collecting during McKean County and Foster Township tax discount periods. 43. Gulnac made late payments to the school district because the tax collector accounts did not contain sufficient funds to make payments to balance the accounts. 44. Late payments made by Gulnac to the BASD were made with funds collected during the discount period for the county and township taxes and due those taxing bodies. 45. Gulnac's failure to provide the BASD with an accurate accounting of all taxes collected during the discount, face and penalty periods resulted in the district requiring her to turn over more tax dollars each year from 1991 through 1996 than was actually required. a. Each year these additional payments were included with payments made late to the BASD. 46. From 1991 through 1996 Gulnac made late payments to the BASD with funds received from the collection of township /county real estate taxes as follows. Excluded are payments made after February 15th but before March 1st of each year as credit for prior taxes collected but not turned over. Tax Year Date Payment Amount Total Amounts Paid Late 1991 03/03/92 $17,458.82 $ 17,458.82 1992 03/12/93 $52,500.00 $ 69,958.82 04/05/93 $40,392.96 $110,351.78 1993 03/14/94 $45,826.16 $156,177.94 04/28/94 $50,058.67. $206,236.61 1994 03/10/95 $33,798.42 $240,035.03 03/30/95 $10,626.00 $250,661.03 04/13/95 $34,650.00 $285,311.03 04/24/95 $41,044.06 $326,355.09 1995 04/13/96 $41,790.92 $368,146.01 04/15/96 $52,500.00 $420,646.01 04/29/96 $41,988.12 $462,634.13 04/30/96 $10,511.87 $473,146.00 1996 04/17/97 $42,255.13 $515,401.13 04/22/97 $52,500.00 $567,901.13 05/08/97 $86,092.65 $653,993.78 05/14/97 $ 7.35 $654,001.13 Gulnac, 98- 044 -C2 Page 10 47. An analysis of collections recorded in the tax duplicate indicates that Gulnac made late payments to the school district totaling $46,321.71 more than required for tax years 1991 through 1996. a. Annual amounts paid late but not due to the district are as follows: Tax Year Amount 1991 $ 1,580.35 1992 $ 5,248.98 1993 $ 9,086.94 1994 $ 9,858.09 1995 $ 6,913.42 1996 $13.633.98 TOTAL $46,321.71 48. Gulnac ended each tax year since 1991 with significant amounts of money owed the BASD. 49. With adjustments made for the annual late payments made to the BASD, Gulnac annually was short the following amounts during tax years 1991 through 1996. a. Shortages are as of February 15 of each year, the last day for payments to reconcile accounts. Tax BASD Recorded Adjusted Shortage Year Shortage Adjustment Total 1991 $ 15,158.79 $ 1,580.35 $ 13,578.44 1992 $ 88,469.49 $ 5,248.98 $ 83,220.51 1993 $174,602.63 $ 9,086.94 $165,515.69 1994 $184,303.55 $ 9,858.09 $174,445.46 1995 $170,545.87 $ 6,913.42 $163,632.45 1996 $172,242.99 $13,633.98 $158,609.01 50. Annual shortages to the BASD were paid for by a combination of available funds in the tax account and money collected for township and county real estate taxes. (See Finding No. 41) a. Gulnac withheld payments to the county and township to make the late payments to the school district. 51. Gulnac did not have a sufficient balance in the tax account to cover the adjusted shortage amounts for any tax year between 1992 and 1996. 52. Gulnac's available tax account balance on the date closest to February 15th of each year compared to the adjusted shortage total for that year was as follows: Tax Year Adjusted Shortfall Available Balance Date Amount Short 1992 $ 83,220.51 $ 36,305.71 02/17/93 ($ 46,914.80) 1993 $ $ 90,157.03 02/14/94 ($ 75,358.66) 1994 $174,445.46 $ 78,894.63 02/16/95 ($ 95,550.83) 1995 $163,632.45 $ 42,821.28 02/20/96 ($120,811.17) Gulnac, 98-044-C2 Page 11 - 1996 $158,609.01 $ 44,942.74 02/18/97 ($113,666.27) 53. Gulnac used funds from township and county collections each March and April to balance her books with the BASD. a. Gulnac continued the cycle of using funds collected during the township and county discount periods in order to conceal shortages in the school district until 1997. b. Gulnac completed the cycle by making up township and county tax payments due by using payments collected by her during discount and face periods for school taxes. 1. These payments were collected from August through December during the years 1990 through 1997. 2. Portions of these tax payments were applied to balances owed for township and county taxes. c. Carolyn Gulnac has admitted that this is the process that she used during the years 1990 through 1997. 54. Collection data recorded in Gulnac's tax duplicates through the completion of the tax year 1996 reflect that she made total excessive late payments in the amount of $46,321.71 for the period 1993 to 1996. 55. As of August 1, 1997, all tax collections due to the BASD were recorded as being paid. a. August 1, 1997, was the beginning of the BASD 1997 real estate tax collection year. 56. The net effect of Gulnac's cycling of tax payments was to balance the accounts for each taxing body for the prior tax year. a. By using tax payments as outlined in Finding No. 53, Gulnac created the illusion that the tax accounts for each taxing body balanced at the end of each tax year from 1990 through 1996. 57. Between August 1, 1997, and January 31, 1998, Gulnac collected BASD real estate taxes at discount, face and penalty amounts. a. Gulnac also collected township /county real estate taxes at penalty amounts. 58. For tax year 1997 Gulnac's collection records turned into the BASD reflect a total overall shortage of $208,673.25. a. The $208,673.25 includes the $46,321.71 in excessive late payments. b. The adjusted shortage totaled $ 162,351.54 ($208,673.25 - $46,321.71). 59. The 1997 duplicate reflects that $210,993.85 was owed to the school district for tax collections. Gulnac, 98- 044 -C2 - Page 12 a. This amount was $2,320.60 higher than what was reported on Gulnac's collection reports. b. This results in adjusted shortages as follows: $162,351.54 $ 2.320.62 $164,672.14 60. The total Toss of $164,672.14 did not become known until the BASD refused to accept late tax payments from Gulnac after the February 15, 1998, deadline for closing tax accounts. a. The refusal of the BASD to accept late payments did not give Gulnac the opportunity to continue the cycle of using tax payments from the township and county to balance school district accounts. b. Gulnac did not have sufficient funds in the tax collector's account to pay the balances owned the school district. 1. Gulnac's balance in the tax collector's account at the end of February, 1998, was $1,993.20. 61. Gulnac attempted to make up shortages in tax payments she owned to the taxing bodies by depositing her personal funds into the tax account. a. On March 2, 1993, Gulnac deposited two checks totaling $10,276.00 into the tax collector's account to offset shortages in tax collections being turned over to the taxing districts. b. Gulnac admitted that this payment was the only attempt on her part to reduce the shortage. 62. Gulnac's total 1997 shortage is based on the following calculations: Duplicate: Additions: Exonerations: Payments: Discounts: Penalties: Returned Taxes: $ Late Payment 2/16/98: $ Penalty: $ 1997 Underpayment: $ 1991 - 1996 Overpayments: $ $1,792,883.00 $ 201,188.73 $ 175,828.66 $1,366,457.66 $ 21,991.70 $ 20.96 148,695.17 73,454.20 1,007.95 2,320.60 46.321.71 TOTAL SHORTAGES: $ 164,672.14 63. Carolyn Gulnac agreed with the BASD that approximately $164,672.14 owed to the school district for tax payments was not made. a. Gulnac had exclusive control over all tax payments received and disbursed by her office. Gulnac, 98- 04.4 -C2 Page 13 64. When submitting reports to the taxing districts by the tenth of each month for prior month's collections, Gulnac did not provide a list of names of all taxpayers and the amounts collected which were made in cash. a. The payments and reports to the taxing districts were not made by the tenth of each month as required by the tax code. 65. Tax payments were made to Carolyn Gulnac both in person and by the United States Postal System. a. Payments were made both by check and in cash. 66. Receipts were issued for tax payments by Gulnac upon request. a. Receipts did not indicate payment was made by check or cash. 67. During the years 1991 through February, 1997, Gulnac maintained a tax collection account at PNC Bank to account number 62- 8577 -3409. a. The account was transferred to Hamlin Bank in February 1997. b. All taxes collected by Gulnac from the township, county and school district were to be deposited into this account. c. Gulnac did not maintain separate bank accounts for county, township and school district tax monies. 68. All payments made on tax accounts were handled by Gulnac. a. No one other than Gulnac had access to any payments received in the tax office. b. Cash payments were bundled for deposit by Gulnac and placed in a pouch controlled by Gulnac. c. Gulnac would make all deposits to the tax accounts. 69. When making deposits to the tax collector account Gulnac would list taxpayers paying by check alphabetically on the deposit slip with the amount paid. a. Taxes paid by check were listed by individual and /or entity making the payment. b. Cash deposits were made in lump sums without identifying the taxpayer. 70. During the discount periods for county and township taxes (March and April) Gulnac made collections and disbursements as follows to Foster Township and McKean County. Year Amount Collected Amount Disbursed Difference 1993: County $230,658.17 $173,978.26 $56,679.91 Township $129,683.35 $109,286.49 $20,396.86 1994: Gulnac, 98- 044-C2 Page 14 County Township 1995: County Township 1996: County Township 1997: County Township a. b. c. $263,759.63 $136,602.90 $257,069.81 $133,166.67 $253,007.01 $131,146.45 $214,822.02 $142,180.20 71. During this same time period Gulnac was making late payments to BASD utilizing tax receipts from the county and township. (See Finding No. 41). 72. In 1993 Carolyn Gulnac issued payments to herself using funds collected and deposited in the tax collector account at PNC Bank. 73. Gulnac issued checks in the name of Carolyn Gulnac drawn on the PNC Tax Collector Account in 1993 as follows: Date 04/20/93 07/21/93 07/21/93 Check No. 1087 1102 1103 $208,021.35 $1 12,368.83 $ 178,257.73 $100,336.77 $158,996.50 $102,500.71 $126,308.20 $ 88,223.80 Amount $3,776.00 $ 850.00 $ 616.77 $55,738.28 $24,234.07 $78,812.08 $32,829.90 $94,010.51 $28,645.74 $88,514.82 $53,956.40 Total $5,242.77 74. These checks were deposited in the personal accounts of Carolyn Gulnac as follows: Check No. Deposit Date of Deposit a. 1087 Northwest Savings Bank, . 04/26/93 Account No. 04 -04- 0019206. 1102 Northwest Savings Bank, 07/21/93 1103 PNC Bank, Account No. 62- 8573 -6456. b. The checks were endorsed by Carolyn Gulnac. 75. The local tax collection law requires that all funds collected and interest accrued by the tax collector must be paid to the taxing districts. a. The $5,242.77 in three checks was not paid to the taxing districts. 76. The checks Gulnac issued to herself as outlined in Finding No. 55 were tax funds she retained for her personal use. Gulnac, 98- 044 -C2 Page 15 77. Section 9 of the local tax collection law provides that tax collector expenses of printing and postage be paid by the taxing district. a. Actual expenses for books, blanks and forms necessary for collecting taxes are to be reimbursed. 78. While serving as tax collector, Gulnac received expense reimbursement for postage on five occasions between 1993 and 1997 from the BASD. Date Check No. 08/08/93 08/08/94 08/14/95 08/08/96 08/29/97 10380 14105 17700 21415 25326 TOTAL 79. Payments for postage to Gulnac were made by the BASD upon receiving an invoice from Gulnac and a receipt indicating she had purchased postage. 80. Gulnac submitted invoices and receipts for postage to the BASD as follows: Date of Invoice Date of Postage Receipt Amount 07/20/93 07/27/94 08/03/95 08/05/96 08/09/97 81. Gulnac utilized funds from the Foster Township Tax Collector account at PNC Bank to purchase the postage for which she was ultimately reimbursed by the BASD: a. Date Check No. 07/20/93 1101 07/26/94 1173 07/26/94 1247 08/05/96 1309 Undated 07/26/94 07/26/95 08/01/96 08/05/97 Amount $ 730.00 $ 730.00 $ 800.00 $ 800.00 $ 800.00 $3,860.00 Total $3,060.00 Description Dep. PNC Personal Acct. 08/13/93 Dep. PNC Personal Acct. 08/15/94 Dep.PNC Personal Acct. 08/17/95, $400 cash out Dep.NWSB Personal Acct.8 /11 /96, $100 cash out Dep. NWSB PersonalAcct.9 /03/97, $300 cash out $ 730.00 $ 730.00 $ 800.00 $ 800.00 $ 800.00 TOTAL $3,860.00 Amount Comment $ 730.00 Postage Meter School Tax $ 730.00 Postmaster, 94 SchoolTaxes $ 800.00 Postmaster, School Tax Postage $ 800.00 - -- b. All of the above checks were issued to the "Postmaster." Gulnac, 98- 044 -C2 Page 16 82. Gulnac used cash to purchase postage on August 5, 1997. a. The cash did not emanate from any bank account under her control. 83. Gulnac purchased $3,060.00 of the $3,860.00 in postage to be used for mailing BASD tax notices with funds from the tax collector account. 84. Carolyn Gulnac received reimbursement for postage on an annual basis between 1993 and 1997 from McKean County and Foster Township for the mailing of county and township tax notices. a. Postage costs would be split equally between the township and the county. b. Gulnac would invoice each entity for '/2 of the receipts for postage purchases. c. Reimbursements would occur in March of each year. 85. Invoices submitted by Gulnac to the township and the county contained duplicate receipts for postage as follows: Date 02/22/93 02/22/94 02/22/94 03/01/96 03/03/97 Amount $ 730.00 $700.00 $800.00 $800.00 Indicates paid in cash $800.00 Submitted to county only 86. Gulnac received reimbursement for postage expenses from the township and county as follows: 4222 12299 19615 26181 34140 Check No. Township 03/18/93 - $ 365.00 16869 03/31/94 - $ 350.00 17171 03/16/95 - $ 400.00 17476 03/04/96 - $ 400.00 17797 1997 - $ 0.00* Total $1,515.00 County 03/10/93 - $ 365.00 03/18/94 - $ 350.00 03/16/95 - $ 400.00 03/16/96 - $ 400.00 03/17/97 - $ 400.00 Total $1,915.00 Check No. *Gulnac received a check (No. 18191) from the township on 02/27/97 in the amount of $400.00 to cover the township's share of the 1997 postage. Postage was purchased by Gulnac on 03/03/97 in the amount of $800.00 using the township check and cash. 87. Gulnac admitted to investigators for the State Ethics Commission that she purchased postage for the postage meter by cash. a. Gulnac's bank accounts during the periods when postage was purchased do not reflect any cash withdrawals. 88. The cash utilized by Gulnac to purchase postage came during the time period that shortages ,were occurring in her tax collections being submitted to the county, township and school district. Gulnac, 98- 04 -C2 Page 17 89. The amounts received by Gulnac for postage reimbursement from the township and county totaling $3,430.00 were deposited into personal bank accounts under Carolyn Gulnac's control. 90. Gulnac used tax collection funds to pay rent for the tax collector's office to Foster Township in 1997. 91. On January 30, 1997, Foster Township Secretary Jennifer Gorrell approached Gulnac in the township municipal building and requested payment of $1,100 in back rent owned by Gulnac for the tax collector office. a. Gulnac went to the tax collector's office and immediately returned with $ 1,100 in cash which was given to Gorrell for the rent. b. The $1,100 in cash was deposited in the Foster Township General Fund on 01/30/97. 92. Carolyn Gulnac was required to pay school taxes on the property she owns at 255 Bolivar Drive, Bradford, PA. 93. For tax year 1996, the Foster Township tax duplicate reveals taxes assessed as follows on the property at 255 Bolivar Drive. Discount: $1,094.54 Face: $1,116.88 Penalty: $1,172.72 94. The 1996 school real estate tax duplicate for Foster Township confirms on Page 278, No. 007 - 014483 the property at 255 Bolivar Drive owned by Carolyn R. Pollock. a. The tax duplicate reflects no tax payments made for this property. 95. Carolyn Gulnac admitted to investigators for the State Ethics Commission that she did not pay these taxes during the discount, face or penalty periods. 96. Gulnac, in her capacity as tax collector, did not turn this property to the delinquent tax collector for non - payment of 1996 school taxes. a. As Foster Township Tax Collector Carolyn Gulnac was the person responsible for reporting delinquent taxes. b. By not reporting her delinquency Carolyn Gulnac received a financial gain of $1,172.72. 97. The 1996 school taxes have not been paid on the property at 255 Bolivar Drive. 98. Carolyn Gulnac has signature authority for the following bank accounts in her name and the name of her husband, David Gulnac. a. David Gulnac - Northwest Savings Bank (NWSB), Account No. 01 -40- 0022578 b. Joint Account - PNC Bank, Account No. 62- 8573 -6456. c. Carolyn Gulnac - NWSB, Account 04 -40- 0019206 Gulnac, 98- 044 -C2 Page 18 99. A review and analysis of the personal bank accounts of Carolyn Gulnac and her husband, David Gulnac, reveals that substantial sums of money were deposited, in cash, into the Gulnac's personal accounts during the period from 1993 through March 1988 [sic]. a. This was the same period of time for which it was determined that BASD that Gulnac was short in tax payments in excess of $164,000.00. 100.• The amounts of cash deposited into the Gulnac's personal accounts, during this period of time exceeds the combined income earned by Carolyn Gulnac and her husband, David Gulnac. 101. Carolyn and David Gulnac's sources of income since 1993 are as follows: Carolyn Gulnac: BASD Foster Township McKean County Interest Income (Northwest Savings Bank) David Gulnac: Social Security Pension (I.A.M.) Interest Income (Northwest Savings Bank) 102. The combined joint net income of Carolyn and. David Gulnac from January 1, 1994, through and including 1997 was as follows: Total $ 209,413.00 103. During the period from 1993 through June, 1998, the following additional sums of cash were deposited into the personal checking accounts of Carolyn and David Gulnac. 1993: 1994: 1995: 1996: 1997: 1993 1994 1995 1996 1997 1998 $ 41,137.20 $ 44,090.39 $ 41,105.56 $ 43,822.52 $ 39,257.33 $ 5,934.16 $ 5,450.00 $ 2,601.00 $ 3,490.00 $ 4,120.00 $ 2.920.00 Total: $25,515.16 104. The $25,515.16 in cash deposits made to the Gulnacs' accounts are in addition to the net incomes deposited by the Gulnacs between 1993 and 1998. 105. The 1993 Federal Income Tax Return for Carolyn and David Gulnac reports a combined gross income of $33,475.00. a. All sources of income are reported from W -2 forms and include the BASD, McKean County, Foster Township, I.A.M. Pension Fund, Social Security benefits, and interest income from NWSB. Gulnac, 98- 044-C2 Page 19 b. No other sources of income are reported. 106. The 1994 Federal Income Tax Return for Carolyn and David Gulnac reports a combined gross income of $36,218.00. a. All sources of income are reported from W -2 forms and include Foster Township, BASD, McKean County, I.A.M. Pension Fund, Social Security benefits and interest income from NWSB. b. No other sources of income are reported. 107. The 1995 Federal Income Tax Return for Carolyn and David Gulnac reports a combined gross income of $32,871.00. a. The same sources of income as identified above are reported. 108. The 1996 Federal Income Tax Return for Carolyn and David Gulnac reports a combined gross income of $34,689.00. a. The same sources of income as identified above are reported. 109. The 1997 Federal Income Tax Return for Carolyn and David Gulnac reports a combined gross income of $35,609.00. a. The same sources of income as identified above are reported. b. No other sources of income are reported. 110. The 1998 Federal Income Tax Return for Carolyn and David Gulnac reports a combined gross income of $3,624.98. . a. All sources of income are reported from W -2 forms and include Foster Township, McKean County, Social Security benefits, I.A.M. Pension Fund, and interest income from NWSB. 111. Pennsylvania State Tax Returns for Carolyn and David Gulnac report a combined gross income as follows: a. 1996: $30,849.00 b. 1997: $31,415.00 c. 1998: $ 2,510.29 b. Sources of income as reported on W -2 forms include BASD (1996, 1997 only), Foster Township, McKean County, Social Security, I.A.M. Pension Fund and interest income from NWSB. 112. The Gulnacs did not report the $25,515.16 cash or the source thereof that was deposited into their various bank accounts during the years 1993 through 1998. 113. Carolyn Gulnac utilized cash to make purchases separate and apart from expenditures that emanated from various bank accounts within her control. a. All grocery, gasoline and incidental living expenses made from 1993 through and including June, 1998, were made with cash. Gulnac, 98- 044 -C2 Page 20 b. A review of the various bank accounts under Gulnac's control verifies no payments to grocery stores or gasoline stations via check or ATM withdrawal thus indicating that such purchases were made in cash and did not emanate from her various bank accounts. 114. Carolyn Gulnac admitted to investigators for the State Ethics Commission that such purchases were made with cash not emanating from any personal bank accounts. 115. A total of $164,672.14 in collected taxes was not paid to the Bradford Area School District, Foster Township and McKean County by Gulnac during the years 1993 through 1998. a. Carolyn Gulnac admitted to State Ethics Commission investigators that such tax funds are missing and unaccounted for. 116. Carolyn Gulnac wrote checks to herself from the tax collector account at PNC Bank in 1993 totaling $5,242.77, deposited those checks into her personal bank account and used such for her personal purposes. 117. Between July 1993 and August 1996 Carolyn Gulnac utilized funds from her tax collector account to purchase postage totaling $3,060.00 for which she was subsequently reimbursed by the BASD. a. The $3,060 was deposited into bank accounts under Gulnac's control and used for her personal purposes. 118. Gulnac received $3,430.00 in postage reimbursement from McKean County and Foster Township from 1993 through 1997 which was deposited into bank accounts under her control. a. Gulnac used cash which did not emanate from any personal bank account to purchase the postage. 119. Gulnac made an office rent payment to Foster Township on January 30, 1997, using $1,100.00 in cash taken from the Foster Township Tax Office. 120. Gulnac did not pay school real estate taxes for her property located at 255 Bolivar Drive, in 1997 totaling $1,172.72. a. Gulnac in her official capacity as tax collector, did not turn the property over as delinquent thus avoiding further penalty or sheriff sale. 121. Gulnac deposited $25,515.16 in cash into bank accounts under her control during 1993 through June 1998 and used it for her personal purposes. a. The cash deposits were made at the time when tax payments she was to make to taxing districts were missing in excess of $164,000. 122. Carolyn Gulnac utilized funds that she collected in her official position as tax collector for Foster Township, McKean County and the Bradford Area School District for personal purposes. 123. Carolyn Gulnac did not file Statements of Financial Interests as elected Foster Township Tax Collector for the 1995 and 1997 calendar years. Gulnac, 98- 044-C2 Page 21 III. DISCUSSION: At all times relevant to this matter, the Respondent, Carolyn Gulnac, hereinafter Gulnac, has been a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, et seq. as codified by Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101, el seq. The issue is whether Gulnac as tax collector violated the following provisions of the Ethics Act as to the allegations that she used the authority of her office for a private pecuniary benefit by converting tax payments for her personal benefit; and when she failed to file Statements of Financial Interests (SFI's) for calendar years 1995 and 1997. Section 1103. Restricted activities. (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. The term "conflict of interest" is defined under the Ethics Act as follows: Section 1102. Definitions. "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Conflict" or "conflict of interest" does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1104. Statement of financial interests required to be filed. (a) Public official or public employee.- -Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, Gulnac, 98- 044 -C2 Page 22 agency, body or bureau in which he is employed or to which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full -time or part-time solicitors for political subdivisions are required to file under this section. Section 1104(a) of the Ethics Act requires that each public official /public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. The above provisions of the Ethics Act were codified by Act 93 of 1998 into 65 PA.C.S. §§ 1101 et seq. Initially, we must consider a procedural issue that has arisen regarding the receipt of an Answer to the Investigative Complaint. The pleading stage in this case began with the issuance of the Investigative Complaint on July 16, 1999. On its face, the Investigative Complaint stated that an Answer had to be received at this Commission within thirty (30) days of issuance and that the Respondent should take that document immediately to an attorney. In this case, an Answer was received on August 20, 1999, which was 34 days after the issuance of the Investigative Complaint. It is clear under the Ethics Act and Regulations that a response to the Investigative Complaint must be received within 30 days. 65 Pa.C.S. §1108(e); 51 Pa. Code §21.5(k). As noted above, even the face sheet of the Investigative Complaint states that an Answer must be received within 30 days. The Answer in this case was received four days late. In order for a late answer to be deemed timely filed, we apply the same standard as is applied by the courts to untimely appeals (see, Getz v. Pennsylvania Game Commission, 475 A.2d 1369 (Pa. Commw. Ct. 1984) applying that standard in administrative proceedings to an untimely request for a hearing). The standard is that to accept the untimely filing as if it were timely, there must either have been fraud or a breakdown in the administrative process, see, West Penn Power Co. v. Goddard, 460 Pa. 551, 333 A.2d 909 (1975); Bianco v. Robinson Twp., 556 A.2d 993 (Pa. Commw. Ct. 1989), which includes the postal process (Getz v. Pennsylvania Game Commission, 475 A.2d 1369 (1984)), or there must have been unique and compelling factual circumstances establishing non- negligent failure to file timely, Grimaud v. Dept of Env. Resources, 638 A.2d 299 (Pa. Commw. Ct. 1994); Bass v. Com., 485 Pa. 256, 401 A.2d 1133 (1979). None of the conditions for allowing the filing of a late Answer is present in this case. In fact, there has not even been any allegation of fraud, any breakdown in the administrative process or the mail delivery system, or any unique and compelling factual circumstances that would establish a non- negligent failure to timely file. Parenthetically, we note that our Regulations allow for the filing of an application for an extension to file an Answer. 51 Pa. Code §21.5(k). No such request was made in this case prior to the filing deadline. Accordingly, this case will be decided based upon the averments in the Investigative Complaint which are now admitted fact findings. Gulnac, 98- 044 -C2 Page 23 We shall now summarize the relevant facts. Gulnac, as the Foster Township Tax Collector, is responsible for collecting real estate, personal property and per capita taxes for Foster Township, McKean County and the Bradford Area School District (BASD). Gulnac received specified compensation plus certain expenses for tax collection. Gulnac operated the tax office out of the Foster Township Building for which she initially paid rent of $100 per month and then $110 per month after November, 1995. Gulnac has been on a leave of absence since February 1998 due to her inability to reconcile the 1997 tax collections for BASD. For municipal tax collections, a tax duplicate is utilized which contains an official list of all taxable properties and persons in each year. The tax duplicate is provided to the tax collector who is responsible for its safekeeping. The tax duplicate must be resolved in a current tax year before the tax duplicate for the succeeding year can be delivered to the tax collector. Tax collectors are required to keep accurate records and accounts of all tax payments. As tax collector, Gulnac was responsible for issuing tax notices and receipts of tax payments for Foster Township, McKean County and BASD. From 1990, Gulnac was unable to reconcile the tax accounts for BASD. Gulnac proffered various excuses, such as, computer problems, assessment problems or bookkeeping errors as reasons for her inability to reconcile tax accounts. In 1997, BASD questioned Gulnac's tax collections. Such action was prompted by Gulnac's repeated late payments to BASD after the February 15th deadline for balancing and closing the previous year tax account. Finally, by letter of July 24, 1997, Gulnac was advised by the BASD Business Manager that BASD would no longer sign tax forms unless all payments were made. Gulnac used the taxes collected during the discount period for the County and Township to make late payments to BASD because the tax collector's accounts for BASD did not have sufficient funds to balance that account. Gulnac developed a cycle whereby she would use Township and County taxes paid in the discount period to cover shortages as to BASD and then used BASD discount payments to satisfy Township and County payments. Gulnac thereby attempted to create the appearance that a given municipal tax account was in balance by utilizing taxes from other municipalities paid in a subsequent discount period to cover the tax collection shortage. When BASD refused to accept late payments from Gulnac after the February 15, 1-998, deadline for closing the tax account, it became known that there was a substantial loss in BASD tax payments. Aside from a payment of $10,276.00 on March 2, 1993, from Gulnac's own personal account to offset shortages in tax collections, Gulnac otherwise did not attempt to reduce the shortage. Gulnac agreed with BASD that approximately $164, 672.14 in received tax payments was owed but not paid by her. When Gulnac submitted monthly collection reports, she did not provide a list of the names of all taxpayers and amounts collected which were made in cash. From 1991 through February, 1997, Gulnac maintained tax collections in one bank account for the County, Township and BASD tax monies. All tax payments were handled by Gulnac so that no one else had access to the tax payments or deposits. In 1993, Gulnac issued three checks to herself totaling $5,242.77 using tax payments collected and deposited in her tax collector's bank account. Gulnac then deposited the three checks into her personal bank account. Such action was contrary Gulnac, 98- 04 -C2 Page 24 to the local tax collection law which requires that all taxes collected and interest accrued by the tax collector be paid to the taxing municipalities. Gulnac also used tax payments to purchase U.S. postage for which she then submitted invoices and received reimbursement from the taxing municipalities. The amounts received by Gulnac for postage reimbursement were deposited into her personal bank account. Gulnac also used tax collections to pay rent for the Tax Collector's Office in Foster Township. Gulnac owns a property at 255 Bolivar Drive. For the 1996 BASD taxes, the tax duplicate reflects that no tax payment was made on the property. However, Gulnac in her capacity as tax collector did not turn in her own property as a delinquency for non - payment of 1996 school taxes. An analysis of the personal bank accounts of Gulnac and her spouse reveal that substantial amounts of cash were deposited into the accounts from 1993 through March, 1998; this occurred when there was shortage in tax payments in excess of $164,000. Such cash deposits totaling $25,515.16 were in addition to the combined income earned by Gulnac and her spouse. Such amounts of cash were not reported by the Gulnacs on their federal and state income tax returns during the relevant time periods. During this time, Gulnac also utilized cash to make purchases of groceries, gasoline and incidental living expenses. We shall now summarize the above but provide specificity as to Gulnac's utilization of tax payments. Gulnac wrote checks from the tax collector's account to herself which were deposited into her personal bank account totaling $5,242.77. In addition, $25,525.16 in cash was deposited into the Gulnacs' accounts that was in excess of their net incomes. Gulnac utilized tax collection funds in the amount of $3,060.00 to purchase postage for which she received reimbursement from BASD. Gulnac used cash which did not emanate from a personal account to purchase postage of $3,430.00 for which she was reimbursed by the County and Township. Gulnac also used $1,100.00 in cash taken from the Tax Collector's Office to pay office rent to the Township. Gulnac did not pay $1,172.72 in taxes on the property she owned and did not report, as tax collector, that her property taxes were delinquent. Finally, Gulnac did not file SFI's for the calendar years 1995 and 1997. Having summarized the above relevant facts, we must now determine whether the actions of Gulnac violated Sections 1103(a) and 1104(a) of the Ethics Act. Gulnac as Tax Collector is a public official. See, Allen, Order 510. Gulnac as Tax Collector used the authority of her office. Gulnac had exclusive control as to the tax payments that were received as well as exclusive control over the tax account wherein the tax payments were deposited. But for the fact that Gulnac was tax collector, she would not have exclusive possession and control over the tax payments. See, Juliante, Order 809. The uses of authority of office by Gulnac resulted in a pecuniary benefit consisting of the tax payments that she converted to her personal use. The pecuniary benefit is private because there is no provision in the tax collection law which allows a tax collector to convert tax payments to personal use. Finally, the private pecuniary benefit inured to Gulnac herself. Accordingly, Gulnac violated Section 1103(a) of the Ethics Act when she as Tax Collector converted tax payments to her personal use. Gulnac through the use of authority of office obtained a private pecuniary benefit of $164,672.14. Gulnac, 98- 044 -C2 Page 25 The findings reflect that Gulnac did not file SFI's for the calendar years 1995 and 1997. Accordingly, Gulnac violated Section 1104(a) of the Ethics Act when she failed to file SFI's for the calendar years 1995 and 1997 as required by law. Turning to the matter of restitution, Section 1107(13) of the Ethics Act, 65 Pa.C.S. §1107(13), specifically empowers this Commission to impose restitution in those instances where a public official /public employee has obtained a financial gain in violation of the Ethics Act. In this case, since it has been determined that a financial gain. has been obtained in violation of the Ethics Act, restitution is warranted. Therefore, Gulnac is directed to pay restitution in the amount of $164,672.14 to Bradford Area School District through this Commission within 30 days of the date of mailing of this Order. Gulnac is further directed to file SFI's for the calendar years 1995 and 1997 with Foster Township within 30 days of the date of mailing of this Order, with copies filed with this Commission for filing verification purposes. Non- compliance will result in the institution of an order enforcement action. The Ethics Act states that any effort to realize financial gain through public office is a violation of the public trust. Gulnac had no regard for the public trust. For Gulnac, public office was a means of providing financial gain to herself. Even this adjudication will not install in Gulnac any sense of the Ethics Act which she has violated. It is appalling that Gulnac's conversion resulted in a deprivation to the children of the Bradford Area School District in their educational endeavors. We cannot simply render a decision and take no further action as to such outrageous conduct. Given the egregious nature of the violation of the Ethics Act, this case will be referred to the McKean County District Attorney, the Pennsylvania Attorney General, the US Attorney, the Pennsylvania Department of Revenue and the Internal Revenue Service with the strongest recommendation of this Commission for prosecution. IV. CONCLUSIONS OF LAW: 1. Carolyn Gulnac, as a Tax Collector in Foster Township, McKean County, is a public official subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998, Chapter 11. 2. Gulnac violated Section 1103(a) of the Ethics Act when she as tax collector converted tax payments to her personal use. 3. Gulnac violated Section 1104(a) of the Ethics Act when she failed to file Statements of Financial Interests for the calendar years 1995 and 1997. In Re: - Carolyn Gulnac File Docket: - 98- 044 -C2 • Date Decided: 8/30/99 . Date Mailed: 9/7/99 ORDER NO.1135 1. Carolyn Gulnac, as a Tax Collector in Foster Township, McKean County, violated Section 1103(a) of the Ethics Act when she as tax collector converted tax payments to her personal use. 2. Gulnac violated Section 1104(a) of the Ethics Act when she failed to file Statements of Financial Interests for the calendar years 1995 and 1997. 3. Gulnac is directed within 30 days of the date of mailing of this order to make restitution of $164,672.14 through this Commission to Bradford Area School District. 4. Gulnac is directed to file Statements of Financial Interests for the calendar years 1995 and 1997 with. Foster Township, with copies filed with this Commission for filing verification purposes, within 30 days of the mailing date of this order. 5. Non - compliance with paragraphs 3 and 4 will result in the institution of an order enforcement action. 6. This matter will be referred to the McKean County District Attorney, the Pennsylvania Attorney General, the US Attorney, the Pennsylvania Department of Revenue and the Internal Revenue Service with the strongest recommendation of this Commission for prosecution BY THE COMMISSION, Z aa?-r DANEEN E. REESE, CHAIR