City Controller John Liu said the concessionaire, New York One LLC, failed to make about $500,000 in capital upgrades to three city-owned carousels.
That includes more than $50,000 for Forest Park, $110,000 for the carousel at Flushing Meadows-Corona Park and more than $400,000 for the Central Park Carousel.
The audit also said the snack bars, pushcarts and surrounding areas were not maintained 'in a safe and sanitary manner.'
Supporters of the Forest Park Carousel, closed since 2008, had long complained about poor maintenance there. The company let its contract expire in 2009.