NC state auditor’s new report on Cary finds ‘excessive’ spending, work climate issues

Following months of reports of mismanagement in the town of Cary, the State Auditor’s Office confirmed a lengthy list of “questionable expenses” and an “intimidating” work environment under former Town Manager Sean Stegall in a new report released Thursday.

Stegall resigned as town manager of North Carolina’s seventh-largest municipality in December, three weeks after he was placed on administrative leave. The town began scrutinizing Stegall following a public records request into what the mayor later called “over-the-top” spending.

“Over the course of our investigation, we learned that the general working environment of the town discouraged the questioning of leadership,” according to the more than 2,600-page report. “Multiple people spoke of having observed something they thought they should report, but that they had no one to report it to.”

A press conference is set for 1 p.m. at the Albemarle Building, 315 N. Salisbury St. in Raleigh. The report was released shortly before 11 a.m.

Stegall did not respond to a phone call from The News & Observer following the release of the report.

An initial forensic analysis showed some transactions made under Stegall indicate potential criminal activity, The N&O previously reported. A procurement card, or P-card, is similar to a town debit card and is often used by government employees to expedite purchasing.

In the auditor’s report, there’s a page-and-a-half bulleted list titled “food, travel and other questionable expenses,” that includes:

• $108,714 for mailing flyers to inform citizens of changes to council districts and election dates, which included a photo of each district representative.
• $120,314 on video production for its 2024 retreat.
• $65,656 for a ghostwriter to write about Sean Stegall’s management style.

In the town’s response with the report, it says Stegall was hired and began introducing “private-sector thinking” that made positive contributions, but “yet, over time, and especially toward the end of his tenure, he made questionable decisions.”

“The work of the (State Auditor’s office) and others has helped us identify gaps in oversight, process and culture,” according to the report. “And while these concerns are largely rooted in the former town manager’s actions, we recognize that as an organization, we have the responsibility to understand what happened, identify how we can strength the systems that failed to prevent it, and ensure our practices reflect the standards our employees and community expect.”

The report makes 13 recommendations to the town including:

• Creating a policy outlining the types of purchases that can be made with procurement cards.
• Creating policy covering council training and education
• Strengthening internal controls over financial reporting and communication
• Having the town’s finance department provide training to all staff responsible for reviewing and approving procurement card transactions

Cary spending

An N&O review of Stegall’s purchases found a high-end speaker system delivered to his home, an out-of-town dinner classified as a training expense, upgraded airline tickets and stays at four-star hotels in 2024 and 2025.

The N&O also reported:

• The town paid nearly $40,000 for Mayor Pro Tem Lori Bush’s tuition for a master’s degree in Northwestern University’s Public Policy Program. Bush repaid the money after the spending was reported, saying she wanted to “remove any concern or distraction.”
• The town spent $1 million to purchase land for future affordable housing without the Town Council’s full knowledge
• Stegall submitted a lost-receipt form for $3,400 spent at a hotel “for multiple staff” during a conference in Texas. Documents obtained by The N&O show that staff stayed at a different hotel.
• A book lauding Stegall as a visionary cost Cary at least $151,000 — 143 copies were sold between August and December 2025.
• Two non-ADA-compliant trolley cars cost the town $539,896. Mayor Harold Weinbrecht wrote they’d been returned in 2023. They hadn’t, and Cary eventually sold them for $300,000.

In addition to the state auditor’s investigation, Wake County District Attorney Lorrin Freeman and Cary Police Chief Terry Sult asked state investigators to launch a criminal investigation into whether town funds were misspent. That investigation is ongoing Freeman said Thursday.

Stegall was hired by the Cary Town Council in 2016, making $210,000 when he was first hired. He is listed in state pension system records as making $366,054 last year.

He left the town manager position, with a severance package totalling $198,832, equal to six months pay, The N&O previously reported.

This story was originally published July 16, 2026 at 10:13 AM.

Anna Roman

The News & Observer

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Anna Roman is a service journalism reporter for the News & Observer. She has previously covered city government, crime and business for newspapers across North Carolina and received many North Carolina Press Association awards, including first place for investigative reporting.