Town appeals ruling on Clinton Martin audit

Richard Tedesco

The Town of North Hempstead is appealing a New York State Appellate Division Court ruling last month that would allow the county comptroller’s office to audit the town-operated Clinton G. Martin Park District in New Hyde Park.

Richard Finkel, a senior counsel with Bond, Schoeneck & King who is representing the town in the case, said on Tuesday he has ”taken steps to appeal the decision” in the New York Court of Appeals. 

“The town believes in its position and it believes that the case has constitutional implications. The town intends to gain a final determination on what its constitution rights are,” said Finkel, who had served as town attorney in the past. “This has nothing to do with what an audit will or will not show. This has to do with whether the county comptroller can come in and perform an audit, or whether the New York State comptroller has the exclusive right to do that.”

Finkel said the Nassau County Supreme Court ruled against the county in a case in the early 1990s when the county attempted to audit the Inwood Fire District.

In its ruling, the appellate court said the state Legislature has granted county comptrollers the authority to audit any town or special district.

The county had sought the audit after questions were raised by Lakeville Estates Civic Association president Marianna Wohlgemuth about town payments to the park district. Wohlgemuth said the town was not current with annual lease payments of $15,000 to the park district for a building the town uses in Clinton G. Martin Park, a special park district located at Marcus Avenue and New Hyde Park Road in north New Hyde Park.

Town of North Hempstead Supervisor Jon Kaiman, a Democrat, had offered to share the park district’s financial records with the comptroller’s office. But he resisted the audit, alleging that county Comptroller George Maragos, a Republican, has a political agenda in making what he called a “back-door” move to audit the town’s finances. 

In response to the town’s latest court challenge, Maragos charged that the town was seeking to avoid accountability.

“It is now apparent that the Town of North Hempstead intends to conceal its financial records from the public scrutiny,” Maragos said in a statement. “The residents of this district and the town deserve answers to the numerous questions relating to how their tax dollars are being utilized in this district and possibly the town itself. Instead of transparency, the town is continuing to waste money on litigation and preventing public records from being disclosed.”

He was joined in his criticism of the town by Wohlegemuth.

“It’s unfortunate that the town continues to perpetuate this particular issue. It’s been decided in lower courts and they continue to spend taxpayer money unnecessarily,” Wohlegemuth said. “I really have to question what they are hiding.” 

Kaiman has conceded the town had fallen behind on its payments, but maintains the town has now paid the park district what it owed and has called on the county comptroller to accept his initial offer to review the town’s records.

“The town has offered to make all records available to the comptroller’s office before we commenced litigation. That offer still stands. The comptroller’s office declined opting for a full audit of the town instead,” said Town of North Hempstead spokesman Collin Nash. “No town has ever been audited by the county comptroller’s office in county history.”

“We believe it is appropriate to have the Court of Appeals determine whether or not Nassau County can audit towns. When the status of the law is determined once and for all the town will comply with the court’s decision,” Nash said.

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