What Cary is saying about the state auditor’s report on town spending
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- The State Auditor released a 2,600+‑page report on Cary’s questionable expenditures.
- Cary's written response lays most of the blame for purchases at Stegall’s feet.
- The town says he eliminated budget and internal auditor positions and reduced staffing.
Cary officials are laying most of the blame at the feet of their former town manager after the release Thursday of an over-2,600-page report from the North Carolina State Auditor’s Office that dives into a plethora of the town’s questionable expenditures.
Town officials did not know the 2,600-page report was being released Thursday, according to Cary spokesperson Carolyn Roman.
Former Town Manager Sean Stegall resigned as town manager in December, three weeks after he was placed on administrative leave, The News & Observer previously reported.
The town had previously agreed to pay Stegall a lump severance of almost $200,000, provided he return town property and give access to his town-related text messages, according to the report. Stegall refused and has not been given his severance.
The N&O reached out to every member of the Cary Town Council as well as the mayor and interim Town Manager Russ Overton.
Council member Sarika Bansal, the only one who responded Thursday morning, said she did not know the report was coming out until The N&O told her.
Bansal said the town has budgeted for two new internal auditor positions this year to address spending concerns, but she doesn’t yet know if those positions have been filled or even advertised.
A written response from the town of Cary, included in the auditor’s report, blames Stegall for questionable purchase and decisions.
Stegall introduced private-sector thought processes to the town, Cary’s statement says.
“Cary continued to thrive, and the former Town Manager made many positive contributions to the community,” it says. “Yet over time, and especially toward the end of his tenure, he made questionable decisions” including:
- Not demonstrating “expected ethical behavior”
- Selectively sharing information only with specific council members, leaving others with a perception that “a majority of the Council was giving or supporting a particular direction or action.”
- Reducing staffing, resulting in overworking employees and putting pressure on them to get work done quickly. This resulted in employees spending more money on convenience fees or other expenses to get things done.
- Eliminating budget and internal auditor positions, creating gaps in financial oversight.
- The statement said Stegall claimed he “thrived under pressure” and often waited on making decisions which sometimes resulted in things like canceling hotel rooms outside of a refund window.
- The town said it’s provided hundreds of thousands of documents and its staff has “fully cooperated” with the auditor’s office.
What measures has the town taken in response?
The town outlined in the report a number of measures it’s taken, some at the recommendation of the report.
Previously, more than 60% of town employees had access to town “p-cards” or procurement cards, which function like a town debit card and are often used by government employees to expedite purchasing.
The town said it’s reduced the number of p-cards held by staff by 25%.
The town has also updated many of its procedures on how to use and distribute the cards, according to its statement.
The report makes other recommendations for spending procedures and calculating the town’s financial reserves. The town said it’s making progress on many of those, with timelines for implementation set for early- to mid-2027.
The town also budgeted for a new budget director position alongside the two new two internal auditors to address spending concerns.
This story was originally published July 16, 2026 at 12:55 PM.
