SHENANDOAH — Shenandoah Borough is seeking a complete accounting of Community Development Block Grant funds administered by Schuylkill County, saying it needs supporting records before paying disputed claims related to road work and demolished properties.
In a , press release, borough officials said they requested contracts, invoices, change orders, payment records, recorded liens and other documentation for county-administered projects dating from January 1, 2015, through the present.
Borough Seeks County CDBG Records
Officials described the effort as an expansion of a Pennsylvania Department of Community and Economic Development monitoring review involving Shenandoah’s 2010–2014 CDBG contracts.
According to the borough, those earlier grants were administered at the municipal level, while Schuylkill County assumed responsibility for the applicable grants beginning in 2015.
The borough alleges that its review identified apparent financial irregularities requiring further examination. Those concerns were outlined in the borough’s release, which did not include a separate response from Schuylkill County.
According to the release, the county directed Shenandoah to submit a formal Right-to-Know Law request and indicated that it would seek a 30-day extension because of the volume of information involved. Borough officials also said they were warned that copies could cost hundreds or thousands of dollars.
“The County administered these grants and should already possess the supporting records,” Borough Manager Mike Cadau said. “The solution is simple: send the Borough the information we requested. We need those records to determine whether public money was handled properly.”
$39,990 Paving Payment Disputed
One dispute concerns a $39,990.15 payment the borough says the county is demanding for an M&J paving project.
The release cites a handout for Shenandoah’s 2025 Road Program identifying M&J Excavation as the contractor and listing a , notice of award.
Borough officials say the project materials require approval of change orders before additional or altered work is performed, except during an emergency affecting life or property.
Cadau said the borough’s review did not locate a 2025 council approval for a change order supporting the amount claimed.
According to the release, County Grant Manager Ron Zimmerman has said a prior borough administration approved the expenditure. Shenandoah officials are seeking records explaining how that approval applies to the project awarded in September 2025.
The borough is requesting the executed contract, change orders, council approval records, invoices, proof of completed work and an accounting of previous payments and the claimed balance.
Borough Questions Demolition Property Claims
A second dispute involves approximately $21,800 the county says is owed from sales of properties reportedly demolished using CDBG funds, according to the borough.
Officials are requesting a property-by-property accounting showing addresses, parcel numbers, demolition costs, grant funding, recorded liens and payoff or release amounts.
The release says the borough was told the county may notify buyers that liens will not be released until payment is received from Shenandoah.
CDBG Bank Account Under Review
The borough is also examining a CDBG account opened in its name at M&T Bank.
According to the release, available information shows the account held $8,188.94 in 2023, but officials have not located corresponding expenditure records in the borough’s accounting software.
Officials are investigating an unconfirmed report that money may have been transferred to the borough’s general fund. Cadau said bank statements and transaction records are needed to determine what occurred and how the funds were spent.
“We cannot assume a transfer alone proves misuse, but we must account for every dollar,” Cadau said.
DCED Monitoring Review Nearing Completion
The borough’s release warns that missing documentation for the earlier grants could expose Shenandoah to repayment of nearly $500,000. The release does not include a DCED order requiring that repayment.
The borough reported that a email from DCED confirmed receipt of a $217.84 repayment, satisfying the corrective action plan for Finding No. 1.
According to the release, DCED also said all actions required by its original June letter had been completed and that a formal letter would begin wrapping up the monitoring review.
The borough said the same email indicated that a 60-day period could be provided for its investigation into possible fraud, waste or abuse, with any findings reported to the CDBG Program Office.
The release identifies , as a deadline for information requested by DCED, correcting an earlier October 11 date cited by Cadau.
Shenandoah Seeks Meeting With County Officials
Shenandoah has requested a meeting with County Solicitor Paul Datte and intends to seek assistance from the Schuylkill County commissioners and county administrator.
Officials also reported recovering approximately $65,000 through a former borough official’s bond and pursuing additional recoveries.
“Shenandoah Borough has a responsibility to verify every financial claim before taxpayer money is released,” Council President Joe Boris said. “The Borough Manager is asking questions and seeking the records needed to protect taxpayer funds.”
Cadau said the borough would promptly review complete documentation and address any lawful, verified and properly documented obligation.