Ulster County's Investment Earnings Could Have Been Higher, Says Comptroller's Update

In Kingston, Ulster County's financial management has seen some success, with a substantial $4.2 million gain in investment earnings following the reallocation initiatives sparked by a 2022 investment policy compliance audit. Yet, a recent update from the county comptroller has indicated that opportunities for an additional $2.4 million in earnings were missed during the period due to the lack of a fully strategic investment approach.

Missed Investment Opportunities

Comptroller March Gallagher highlighted the need for Ulster County to maximize the potential to earn additional funds, which are crucial for maintaining basic services for residents and managing taxpayer impact. Despite the reallocation, Gallagher expressed concern that the county's investment portfolio has not been fully revised in accordance with the county's updated investment policy.

Policy and Portfolio Management

Responding to the comptroller's remarks, County Executive Jen Metzger pointed out that the revised investment policy was only recently adopted--four months before the conclusion of the audit period--and the full investment advisory board had yet to be formed. According to Metzger, it may be too soon to evaluate compliance with the new policy. She underscored that, while investment yield is important, the primary objectives for the portfolio should focus on safety and liquidity.

Metzger also responded to the draft audit's implications about portfolio diversity, asserting that the county's investments were more diversified than indicated. This emphasis on a well-rounded investment approach is critical for balancing both the security and growth prospects of the county's funds.

Earnings, Investment, Audit