A New York fire district has filed suit against the bookkeeping company that handled its accounting services for nearly two decades, alleging the company refused to turn over electronic financial records, payroll templates, and other accounting data needed for the district’s operations and annual audit.  

The case was filed by the Locust Valley Fire District in Nassau County Supreme Court against North Shore Payroll & Bookkeeping Corp. The district alleges that North Shore has provided accounting and bookkeeping services for approximately twenty years and is currently operating under a contract that runs through December 31, 2028. George Stack is identified in the petition as the president and principal officer of North Shore and the company’s primary contact with the district.  

According to the petition, the dispute arose in early 2026 when the fire district began reviewing and updating its accounting procedures. At the time, North Shore was processing payroll for district employees through ADP. The district sought to bring payroll processing in-house and requested ADP payroll templates and training materials from North Shore.  

The district further alleges that during preparations for the payroll transition it discovered that North Shore had full access to and control over the district’s bank accounts and online banking. The petition states that North Shore eventually turned over account access but sought a resolution from the Board of Fire Commissioners indemnifying the company for the future conduct of district employees involved in payroll processing. The district alleges that when asked to explain the request, Stack responded that he trusted himself but not district employees. The board did not adopt the requested resolution.  

In March 2026, the district retained CPA Jill Lemke of JKL Municipal Accounting Solutions to assist with its accounting operations. The district then requested that North Shore provide the QuickBooks data and files relating to the district’s financial records. According to the petition, North Shore refused, claiming the QuickBooks files were proprietary, but indicated they could be provided for a fee. The district alleges that North Shore subsequently submitted a proposed new contract that included provisions for the sale of the QuickBooks data and fees for ADP training.  

The petition alleges that North Shore repeatedly insisted that a new contract be negotiated before it would release the QuickBooks files, despite the existence of the current contract extending through 2028. The district contends it repeatedly advised North Shore that it was not seeking to negotiate a new agreement.  

As part of the transition process, Lemke requested information identifying the version of QuickBooks being used so that the district could establish compatible access to its financial records. The district alleges that the request was denied and that North Shore again tied compliance to the execution of a new contract. Additional requests from the district and its attorney seeking the QuickBooks files, software information, and ADP templates were also unsuccessful.  

The petition further alleges that the district’s independent auditors requested the QuickBooks files in order to complete the district’s 2025 audit and Annual Financial Report. According to the district, North Shore failed to provide the requested records, preventing completion of the audit and causing the district to miss a filing deadline with the New York State Comptroller. The petition states that the auditors could not complete the Annual Financial Report without the electronic QuickBooks data.  

The district also alleges that during a Board of Fire Commissioners meeting on April 13, 2026, the board formally requested that North Shore provide the QuickBooks files. According to the petition, Stack attended the meeting but did not respond to the request. The district further alleges that it was stated on the record during that meeting that no contract negotiations were taking place.  

The dispute appears to center on a provision in the parties’ existing contract stating that “all original accounting data, including spreadsheets, shall remain the property of” North Shore. The district contends that the QuickBooks files, payroll templates, and related electronic records belong to the fire district because they contain the district’s own financial information and are necessary for its ongoing operations, audits, and reporting obligations.  

The Fire District is asking the court to order North Shore to provide the QuickBooks data and files relating to the district’s financial information, disclose the version of QuickBooks being used, and turn over the ADP payroll templates used for district payroll processing.