An audit of the New York State...

An audit of the New York State Racing Assn. found the nonprofit organization spent $472,938 over its state-set limit and said the money should be paid back to the state.

Prepared by state comptroller Edward Regan’s office, the audit said the racing association, “erroneously” classified as “extraordinary” the $1.35 million spent to paint and galvanize the Aqueduct Race Track grandstand before the Breeders’ Cup Series in November 1985.

The association contended the expenditure was not subject to the $106.6 million ceiling. The comptroller’s office, however, maintained the painting was a normal operating expense subject to the ceiling.