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The City of Williamsport's controller acknowledged Monday that she was aware of an investigation taking place into River Valley Transit's handling of federal and state grants between 2009 and 2019.
"It is still being investigated, but that is all I know," Controller Margaret Woodring said Monday after reports of the investigation surfaced late last week. "I've not been contacted by the state at all."
Attempts to reach the offices of Attorney General Josh Shapiro were not successful.
City employees said Shapiro agents are focused on grant use and lumping together of grant resources and improper accounting.
River Valley Transit was managed then by William E. Nichols Jr.
"Initially there was an investigation and it went quiet until Bill was let go," Woodring said.
An elected official, Woodring handles the city money, signing off on checks and financial matters.
Woodring said she has not been successful reaching Joseph Pawlak, city interim finance director who worked with Nichols, to ask about the status of the investigation.
Mayor Derek Slaughter, who declined to comment on the investigation Monday, referred questions to Shapiro.
Slaughter fenced regularly with Nichols when he was on City Council over what he perceived to be irregularities in the finance department and River Valley Transit.
Slaughter then ran a mayoral campaign he said was a promise to restore financial accountability and transparency to City Hall.
"Since Jan. 6, 2020, we have been above board and transparent," Slaughter said.
That was the week Slaughter terminated Nichols, who had until then served eight city administrations as finance director and River Valley Transit manager, a career spanning 40 years.
Slaughter said he has reached out to various government agencies that have provided and continue to provide significant funding to the city, including -- but not limited to -- the state Department of Transportation and the Federal Transit Administration for review, recommendations and action.
Attempts to reach Nichols Friday and Monday were not successful. Former Mayor Gabriel J. Campana denied any knowledge of grant receipts or their use for River Valley Transit.
Council President Randall J. Allison also declined to comment Friday.
"We are doing things correctly," Adam Winder, general manager of River Valley Transit, said Monday.
Winder declined to comment about the investigation.
River Valley Transit annually receives millions of dollars in subsidies from the state Department of Transportation, Federal Transit Administration, Winder said.
The transit budget is from July 1 through June 31, so it is coming up for City Council to review, he said.
Of the $6.3 million in the budget, about $4.6 million is state money, $2.5 million federal government, and $450,000 in contributions by local share or those that use the bus service, Winder said.
About $1.1 million was from COVID-19 pandemic relief funds so the bus service could meet revenue because the rides were free, Winder said.
"PennDOT and FTA educated me and showed me how the reporting works," Winder said.
River Valley Transit finances and budget requests go before city finance committee and council in April, Winder said.
With millions of dollars of accounting practices each year, River Valley Transit has discussed with the administration the possibility of an authority established to oversee management.
The city has discussed the possibility of establishing an authority to oversee River Valley Transit daily operations, similar to how it works at Williamsport Municipal Water and Sanitary Authority, Winder said.
"We are looking at all options," he said.