The findings, outlined in the borough’s fourth forensic report, center on the discovery that Palubinsky continued receiving payroll checks for more than two and a half years after his retirement on May 30, 2015. According to the analysis, he received 59 payroll checks totaling $59,636.59 in net pay through January 2018, despite what borough officials say was no legal or contractual basis for those payments.
The core dispute concerns whether Palubinsky—confirmed by the borough and union representatives as a non-union employee—was entitled to retirement benefits aligned with the borough’s AFSCME bargaining unit.
Cadau stated that Palubinsky was an exempt, non-union employee and “was never a member of the union, nor did he ever pay any union dues.” This position is supported by Logan Billig, Council 13 Representative for AFSCME, AFL-CIO, who confirmed in writing:
“Joe Palubinsky was not a Union member with AFSCME Local 2838 Shenandoah Borough and never paid Union dues, nor was he eligible to be a Union member.”
Despite this, an alleged employment agreement dated October 14, 2013, surfaced in which Palubinsky’s attorney argues that his benefits were tied to the union contract. The document states the employee “shall accrue… vacation and sick leave at the same rate as other borough employees covered by the AFSCME contract.”
The forensic accountant’s analysis concluded that Palubinsky was overpaid $55,851.82 based on vacation, sick, and personal time payouts that exceeded what even a union employee would have been entitled to. The report breaks down the alleged overpayments as follows:
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Excess Vacation Pay: $27,666.15
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Excess Sick Pay: $14,774.33
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Excess Personal Pay: $6,637.28
The total includes employer tax-matching obligations.
“Based on the above comments I arrived at excess payments above the Union Contract in the amount of $55,851.82,” the forensic accountant wrote.
The borough states that its internal review revealed no official approval—no minutes, resolutions, consent votes, or other documentation—that permitted Palubinsky to accrue or receive benefits after his retirement.
Cadau said the lack of documentation combined with Palubinsky’s non-union status indicates the payments “should never have been issued,” adding:
It “is improper and unethical for an exempt employee responsible for negotiating labor agreements on behalf of the Borough to receive union-level benefits.”
Borough officials say none of the post-retirement payments appeared in any council-approved actions, nor were they included in personnel or contract files.
The forensic accountant emphasized that the document is a preliminary financial analysis—not an audit or legal opinion. Its purpose, according to the report, is to document what was paid and “pass the analysis on to you and/or law enforcement to determine their legality.”
Borough officials have not yet stated whether the findings will be referred to law enforcement, though Cadau noted the report’s scope was specifically structured to support such a review if appropriate.
The Borough of Shenandoah is expected to discuss the report at its next public meeting Monday evening, where officials may consider seeking repayment, further investigation, or additional forensic reviews into past financial practices.