The North Carolina State Auditor's investigation into the Town of Cary was released to the public this week. The report is extensive (more than 2,600 pages when you include supporting documents) and covers a wide range of topics, from procurement card spending and travel expenses to property purchases, governance, workplace culture, and more.

The auditor identified policy violations, spending it characterized as questionable or excessive, and weaknesses in financial oversight, and referred certain purchases to the Wake County District Attorney and State Bureau of Investigation for review.

We broke the report down section by section. This edition compiles all nine breakdowns into one place, along with links to the full report, coverage from other local outlets, and the Town's response.

The Cary Town Council has also released an independent 272-page review by Womble Bond Dickinson. While separate from the State Auditor’s investigation, the report reaches many of the same conclusions, attributes the operational failures largely to former Town Manager Sean Stegall and structural weaknesses in the council-manager system.

If you only have time to read one thing, read pages 4 through 7 of the State Auditor’s report. That's the executive summary, and it covers the major findings in the Auditor's own words. Throughout our breakdowns, we've tried to stick to what the report says, what it doesn't say, and what remains unresolved.

State Auditor's Report: https://www.auditor.nc.gov/documents/reports/investigative/inv-2026-cary/open

Womble Report: https://carync.app.box.com/s/dsmsccmbs47q82u9cfv9sz3267vu1p3a?fbclid=IwY2xjawTInKZleHRuA2FlbQIxMABicmlkETEySW12dm0wN1hNRzk5YlJFc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHiYwGOFor0D68R3lm0t3dflt33jzt7KbNOnwS3xy36m7-yC469GbNTecbKUS_aem_BdY84hmkkZUacQgSfRRLeA

Moving Forward Dashboard: https://www.carync.gov/connect-engage/newsroom/bottom-line/moving-forward-dashboard

07/16 Town Council Emergency Meeting: https://www.youtube.com/watch?v=pZkwKGOg4d0

One of the largest sections of the State Auditor's report focuses on the Town of Cary's use of procurement cards, commonly known as P-Cards.

A procurement card works much like a government-issued credit card. They are intended to help employees quickly purchase supplies, equipment, travel, training, and other legitimate business expenses without going through the traditional purchasing process for every transaction.

According to the audit, Cary had 828 active procurement cards, meaning more than 62% of Town employees had one. Investigators said that was significantly higher than other large municipalities in North Carolina.

For comparison, the audit found:

Across the nine other largest municipalities in North Carolina, the average was about 16% of employees, roughly one-quarter of Cary's rate.

Between January 1, 2024, and December 31, 2025, Town employees made more than 60,000 procurement card transactions totaling approximately $24.2 million.

The State Auditor concluded that Cary's large number of procurement cards increased the opportunity for waste and reduced oversight. Investigators also found weaknesses in documentation and approval procedures, including purchases that lacked receipts or itemized receipts and expenses that did not have a clearly documented government purpose.

The report highlights numerous examples of spending that auditors questioned, including meals, travel, promotional items, entertainment, and other purchases. Some expenses were later reimbursed, while others were criticized because they lacked sufficient documentation or justification.

One important note: the report does not state that every questioned purchase was improper or illegal. Instead, the Auditor concluded that Cary's procurement card program lacked sufficient oversight and internal controls to ensure taxpayer dollars were consistently spent appropriately.

In response, Cary says it has taken steps to strengthen oversight, including reducing the number of active P-Cards, tightening eligibility requirements, and adding additional review and documentation requirements for purchases.

One section of the State Auditor's report examines the Town's purchase of two properties at 600 and 604 Kildaire Farm Road, near Cary Elementary School, for a combined $1,073,550.

The original allegation was that former Town Manager Sean Stegall divided the purchase into two transactions to remain below a $1 million spending limit and avoid obtaining approval from the Town Council.

However, the Auditor did not substantiate that allegation. Investigators found that the properties had different owners and therefore had to be purchased separately. They also determined that the Town Manager and Deputy Town Manager effectively had no fixed spending limit as long as money was available within a fund previously appropriated by the Council.

Instead, the Auditor's concerns centered on the decision to purchase the properties despite concerns raised by an assistant town manager, the failure to inform the full Council, the absence of normal real estate documentation, and the use of money from the Parking Technology Fund.

One property was jointly owned by the Estate of Carlos Yates Jordan and Jordan Real Estate Holdings, LLC. The second was owned solely by Jordan Real Estate Holdings, LLC.

The Town paid $387,980 for one property and $685,570 for the second, bringing the total purchase price to $1,073,550.

The Auditor noted that this was consistent with the properties' combined appraised value of $1,101,200. The report therefore does not conclude that Cary substantially overpaid for the land.

According to the report, Council Member Lori Bush asked an assistant town manager to evaluate several properties, including the land near Cary Elementary School, for possible purchase by the Town.

After evaluating the property, the assistant town manager emailed Bush that she did not believe the land was worth purchasing and that the Town had no immediate use for it.

The assistant town manager later told investigators that Stegall instructed her to "just buy the property" and said he would speak with the Council about the purchase himself.

According to the Auditor, the full Council was never informed of the purchase, even after it had been completed.

Former Town Manager Sean Stegall made the final decision to purchase the properties and directed staff to complete the transaction despite an assistant town manager's recommendation against it.

Cary's internal process for most property transactions includes completing a "Real Estate Intake Form Acquisition," which is submitted to and evaluated by the Town's real estate office.

When investigators requested the contracts for these purchases, they discovered that the intake form had never been completed.

The Auditor did not conclude that the missing form invalidated the purchase. However, it meant the transaction did not go through the normal documentation and internal review process used for most Town real estate acquisitions.

The report does not support that allegation.

Investigators found that the parcels had different ownership arrangements, which required them to be purchased separately.

The Auditor also found that although Cary's four assistant town managers each had a $500,000 spending limit, the Town Manager and Deputy Town Manager could spend up to the full amount available within a Council-approved fund appropriation.

Stegall was therefore not subject to the $1 million spending limit described in the original allegation.

The issue identified by the Auditor was that Cary lacked a policy requiring direct Council approval for a capital purchase of this size. That allowed more than $1 million to be committed without the full Council being informed or voting specifically on the purchase.

The properties were purchased using money from Cary's Parking Technology Fund, a capital expenditure account.

According to the Finance Director, a better process would have been to amend the budget and transfer the money from the Parking Technology Fund into a land acquisition fund.

She also told investigators that, at a minimum, the Council should have been informed that money from the Parking Technology Fund was being used to purchase land.

The Auditor found that no controls were in place requiring that notification or approval.

The Finance Director also said staffing reductions in Cary's budget office had limited its ability to work with project managers and independently verify whether money was being spent appropriately.

Town records confirm that Cary purchased the two properties on July 31, 2024.

In December 2025, Mayor Harold Weinbrecht said the Town still owned the land but had not decided what to do with it. In a January 2026 interview, he said the Council had not discussed a future use for the property.

The State Auditor's report does not provide a newer plan for the land. Cary's public Town Manager transition page continues to identify the two parcels as Town purchases but does not announce a final use or disposition.

Separately, the Auditor's report states that the Office of the State Auditor provided the Wake County District Attorney and State Bureau of Investigation with a preliminary overview of purchases made by Stegall that appeared potentially fraudulent.

The report says the Auditor withheld the specifics of those purchases to protect the integrity of any resulting investigation. It does not state whether the Kildaire Farm Road property purchases were included in that referral.

The Auditor recommended that the Town Council adopt a formal capital expenditure policy requiring Council approval for purchases exceeding a specified dollar amount.

The policy should clearly define capital expenditures, establish approval limits, and require documentation showing that purchases were properly reviewed and authorized.

The report does not conclude that the land was purchased for an illegal purpose, that the sellers received an inflated price, or that Stegall violated an existing $1 million spending limit.

Instead, the finding identified a gap in Cary's financial controls that allowed more than $1 million to be spent on land without the full Council being informed, without a specific Council vote on the purchase, and without the transaction going through the Town's normal real estate review process.

Cary says it will research best practices and review its current controls for Council approval of capital spending and the movement of money between capital projects. Based on that review, the Town plans to draft a new Council policy, recommend updates to its budget ordinances, or pursue both. The Budget Department, Town Manager's Office, and Town Council are listed as the responsible parties, with completion targeted by February 2027. Any new policy or ordinance changes will require a vote by the Council in an open meeting. The Town's progress can be tracked under OSA Recommendation 9 on the Moving Forward Dashboard.

Few parts of the State Auditor's report drew more attention than how the Town of Cary spent taxpayer dollars on travel, meals, and other business-related expenses.

The review covered purchases made between January 1, 2024, and December 31, 2025, and looked at whether those expenses complied with Town policies, were properly documented, and served a legitimate government purpose.

According to the report, investigators repeatedly found food purchases that "seemed excessive or served no identifiable business purpose." They also identified alcohol purchases that violated Town procedures and instances where receipts or documentation were incomplete or missing.

The audit notes that Town policy generally requires meals to have a legitimate business purpose, appropriate approvals, and adequate documentation. Employees traveling on Town business are also expected to follow federal General Services Administration (GSA) per diem guidelines for meal reimbursements.

The report includes dozens of examples. Among them are:

For travel and meal expenses, Cary says it has updated its travel policy, strengthened documentation requirements, increased approval and review procedures, and clarified expectations for business-related expenses.

One section of the State Auditor's report examines the Town's payment of $37,300.97 in graduate school tuition for Council Member Lori Bush.

Unlike some of the other sections of the audit, this one is more nuanced. The report does not conclude that Bush knowingly violated Town policy or improperly charged tuition to a Town procurement card herself. Instead, the Auditor's findings focus primarily on the actions of Town management, concluding that former Town Manager Sean Stegall directed tuition payments despite the absence of a Council-approved policy authorizing education reimbursements for elected officials.

The Auditor ultimately recommends that the Town adopt a formal policy governing future education reimbursements for Council members.

According to the report, in early 2024 Sean Stegall emailed Lori Bush a link to Northwestern University's Master of Public Policy and Administration program, writing that it made him think of her.

Bush later told investigators she had already been researching graduate programs and had already been in contact with Northwestern before receiving Stegall's email.

As Bush moved forward with enrollment, she contacted the Town's Human Resources department to ask whether tuition reimbursement was available. According to the report, an HR employee initially responded that the Town's tuition assistance program reimbursed employees up to $3,500 per year.

After looking into the issue further, the HR employee told investigators that the Town's tuition assistance policy applied only to employees, not Council members, and said the Town Attorney agreed with that interpretation. According to the report, Bush was told that if the Town were to pay for her education, it would instead need to be considered as professional development outside of the existing tuition reimbursement policy.

The Auditor found that the Town ultimately paid $37,300.97 toward Bush's graduate tuition even though no Council-approved policy authorized education reimbursements for elected officials. The report states that some tuition payments were made using the Town Clerk's procurement card, while Bush paid other tuition expenses herself before later seeking reimbursement from the Town.

The Auditor concluded that the Town lacked an established policy governing education reimbursements for elected officials and recommended that any future reimbursements require a formal, Council-approved process.

After Sean Stegall was placed on administrative leave, Bush repaid the Town in full.

According to the report, she repaid $36,558 on November 24, 2025, followed by the remaining $742.97 on December 2, 2025, reimbursing the full $37,300.97.

The report also includes testimony from the Town Clerk regarding how the tuition payments were handled.

According to the Auditor, the Clerk said Sean Stegall repeatedly followed up about why Bush's tuition payments had not yet been processed and described the experience as "a year of trauma."

The report also states the Clerk believed Stegall intentionally kept the tuition payments from the full Council. She told investigators that Stegall said, "If [Councilmember Bush] ever gets upset at me, I'll let everybody know about the tuition," which she interpreted as an indication that not all Council members knew the Town was paying for Bush's education.

The report further cites another Town employee who said Stegall advised Bush not to repay the tuition because "it's going to make you look guilty."

In response to the audit, Cary says it is developing a formal policy governing education reimbursements for elected officials.

One section of the State Auditor's report examines Cary's 2024 Council and staff retreat in Wilmington.

The costs specifically identified in the report total at least $207,936.75. That included more than $121,000 in video production, $74,173 for the hotel and on-site meals, and additional spending on restaurant dinners, transportation, and other miscellaneous items.

The Auditor did not conclude that holding a retreat was itself improper. Instead, the report highlighted the amount and nature of several expenses connected to the event.

On the first night of the retreat, Town employees performed a choreographed dance to ABBA's "Dancing Queen" as a surprise for former Town Manager Sean Stegall and the Council.

Town officials said the employees used their own personal time and money for choreography and costumes. The performance itself was filmed by Digital P Media and shown to attendees on the final night of the retreat.

The Town spent $86,338.75 on videos shown during the retreat:

The report says these amounts may not include Digital P Media's travel expenses.

After the retreat, Stegall wanted a documentary made about how the dance came together. The resulting 28-minute film, "Dancing Queens: A Case Study," cost an additional $34,975.

That brought the total video production cost connected to the retreat to $121,313.75.

The videos were produced for internal use, but the State Auditor's office released them publicly with the report.

The Town spent $74,173 at the Wilmington hotel. That included attendee rooms, meeting space, breakfast and lunch buffets, and a plated dinner.

The report also highlighted several restaurant expenses:

The report specifically states that Stegall wanted the $34,975 "Dancing Queens" documentary produced after seeing the performance.

However, it does not identify who approved every video, restaurant, transportation, or hotel expense connected to the retreat. It also does not state that the Council voted to approve each individual expense.

The Auditor did not make a recommendation specifically dedicated to the Wilmington retreat. Instead, the expenses are addressed through broader recommendations involving procurement cards, documentation, transaction reviews, and Council travel. Cary says it plans to create a formal policy for meal expenses during Council travel, establishing allowable expenses and documentation, review, and approval requirements. Council approval is targeted for February 2027 and will require a vote in an open meeting.

One section of the State Auditor's report examines Cary's broader financial condition between fiscal years 2021 and 2025.

The Auditor found that Town spending grew faster than revenue, resulting in operating deficits in 2023 and 2024. The report also found that Cary fell below its required Fund Balance minimum, although the Town and Auditor disagree about the size and duration of that shortfall.

One important note: the report does not conclude that Cary is bankrupt or unable to meet its obligations. According to the Auditor, the Town's finances had recovered by the end of fiscal year 2025 and its Fund Balance was once again above the required minimum.

Between fiscal years 2021 and 2025, Cary's revenue increased by $81 million, or 41%.

During the same period, spending increased by $99.8 million, or 60%.

That resulted in operating deficits during two consecutive years:

The report shows that Cary returned to a positive operating result in fiscal year 2025.

Cary's Fund Balance functions like an emergency savings account. Town policy requires it to remain equal to at least 33.33% of budgeted General Fund spending.

Both the Town and the Auditor agree that Cary fell below that minimum in fiscal year 2023, but they calculated different shortfalls:

The larger disagreement involves fiscal year 2024.

Using Cary's calculation, the Town was $4.4 million above the required minimum. Using the Auditor's calculation, Cary was $10.4 million below it.

The difference comes from the budget figure used in the calculation. Cary used the original budget adopted at the beginning of the year. The Auditor used the final adjusted budget, which included amendments approved throughout the year.

The Auditor concluded that the final adjusted budget better reflected the Council's legally authorized spending and more closely aligned with accounting guidance. Cary's response says it disagrees with the Auditor's conclusion for fiscal year 2024 because of that difference in methodology.

During a Council meeting in November 2025, former Town Manager Sean Stegall repeatedly said Cary had never fallen below its Fund Balance minimum.

That statement was incorrect under both calculations because the Town itself acknowledges falling $3.1 million below the minimum in fiscal year 2023.

The report says it is uncertain whether Stegall knew the Town had fallen below the threshold when he made those statements.

The Auditor made four recommendations related to Cary's financial health and reporting.

Cary says it plans to:

The reporting and policy changes are targeted for completion by May 2027. The training program is targeted for February 2027. Policy changes will require a Council vote in an open meeting.

The adopted fiscal year 2027 budget also restores a budget director and internal auditor and compliance positions intended to strengthen financial oversight. Progress can be tracked under OSA Recommendations 10 through 13 on the Moving Forward Dashboard.

One section of the State Auditor's report examines Top of the Arc, a book about former Town Manager Sean Stegall's leadership philosophy that was developed and published using Town resources.

The Auditor confirmed that Cary paid $65,653 to the book's ghostwriter. Chief Strategy Officer Susan Moran estimated that the Town had invested approximately $150,000 in the project overall.

As of May 20, 2026, only 266 copies had been sold, including three e-books, while another 2,309 copies remained in inventory.

The Town owns the copyright, meaning any potential revenue belongs to Cary.

According to Moran, Stegall had wanted to write a book before becoming Cary's Town Manager and arrived in Cary with the idea already in mind.

Once Stegall decided to proceed, he instructed Moran to find a ghostwriter. New York writer Seth Kaufman was hired to interview Stegall and write the book. Cary ultimately paid Kaufman $65,653.

Top of the Arc was published on August 5, 2025, by Radius, a partner of Simon & Schuster.

Moran described the book as using experiences, primarily from Cary, to explain Stegall's leadership style and offer government leaders a different perspective on how to operate their organizations.

Although Stegall's name appears on the book, Moran told investigators that he did not personally receive payment from the project beyond his regular Town salary.

The only individual expense specifically quantified by the Auditor was the $65,653 paid to Kaufman.

However, Moran estimated that the Town had approximately $150,000 invested in the book after accounting for the broader project.

The report does not provide a complete itemized breakdown of that estimate, so it is not possible to determine from the audit exactly how much was spent on publishing, printing, design, marketing, or other related costs.

Moran acknowledged that the project had not been financially successful and was nowhere near recovering its costs.

As of May 20, 2026, Town officials reported that Cary had sold 266 copies of Top of the Arc, including three e-books.

Another 2,309 copies remained in inventory.

The report does not state how much revenue those sales produced or provide an updated plan for the remaining books.

Mayor Harold Weinbrecht told investigators that he and the rest of the Council did not know Town funds were paying for the book.

According to Weinbrecht, Council members assumed Stegall was financing the project himself.

The report does not state that the Council voted to authorize the project or approve its individual expenses. It also does not identify who approved every payment associated with publishing and producing the book.

The Auditor did not issue a numbered recommendation specifically addressing Top of the Arc like most of the other sections of the audit, and no action items directly related to the book appear on the Moving Forward Dashboard.

That leaves the fate of the remaining 2,309 copies, and any future revenue from them, as an open question.

The final section of the State Auditor's report examines the work environment under former Town Manager Sean Stegall.

According to the Auditor, employees and Council members described a culture that discouraged questioning leadership and increasingly relied on private conversations, isolated decision-making, and carefully controlled information.

The report includes accounts of intimidation, pressure, bullying, emotional outbursts, and fears of being marginalized for disagreeing with Stegall.

The report does not include a response from Stegall to these accounts.

The Auditor said multiple employees described seeing things they believed should be reported but feeling they had no one to report them to.

One employee said she had been preparing to resign before Stegall was placed on administrative leave because of what she described as bullying and pressure.

According to the report, employees and Council members described Stegall's behavior as intimidating, erratic, and increasingly emotional. One employee said Stegall "blowing up" during meetings became more frequent and that he would become loud, emotional, or disappear.

A Council member told investigators that Stegall sometimes prevented her from speaking or voicing concerns and threatened to shut down projects in her district.

The Town Clerk described the atmosphere more directly:

"You could never go against [Mr. Stegall]. You could never tell [him] 'no.'"

She said employees who challenged him could be picked on or marginalized.

One example the report details appears in its section on Council Member Lori Bush's tuition.

The Town Clerk told investigators that Stegall had intentionally kept the tuition payments from the full Council. According to her account, Stegall told her:

"If [Councilmember Bush] ever gets upset at me, I'll let everybody know about the tuition."

The Clerk also said Stegall repeatedly pressured her about processing Bush's tuition payments and described that period as "a year of trauma."

The Auditor also found that the Council delegated financial matters to a small group while limiting its own involvement and access to information.

According to the report, Stegall encouraged this through private one-on-one meetings and what the Auditor described as a "concierge service" approach to handling individual Council members' priorities outside of full Council meetings.

The Auditor said the Council enabled this arrangement by allowing it to continue throughout Stegall's tenure.

Council Member Sarika Bansal described the financial discussions provided to Council as "all fluff" and said Council members did not know the Town had fallen below its Fund Balance minimum.

Council Member Lori Bush told investigators that Council members would ask about the cost of individual programs but did not know Stegall was moving money between departments and funds.

The Finance Director said financial and budget matters had been placed on the "backburner" and that Finance staff had been "muted" during those years.

The Auditor did not place responsibility solely on Stegall.

While the report says Stegall encouraged private conversations and controlled access to information, it also concludes that the Council enabled this approach and allowed it to continue.

The Auditor said Council members generally remained hands-off on budget planning and relied heavily on Stegall and a small number of staff members to manage the Town's finances and internal operations.

The State Auditor did not issue a numbered recommendation specifically addressing workplace culture. However, Cary has taken several separate steps in response to the concerns surrounding Stegall's management.

The Town commissioned outside law firm Womble Bond Dickinson to conduct an independent review and launched its first employee engagement effort in more than a decade. That process included employee focus groups, a confidential survey, analysis, and recommended next steps.

Cary has also ended the former practice of the Town Manager meeting privately with individual Council members. Interim Town Manager Russ Overton instead began meeting with groups of two or three Council members and at least four staff members, with the goal of improving documentation and ensuring more people receive the same information.

Beyond the major sections covered elsewhere in this edition, the State Auditor's report highlights several additional expenses and events involving former Town Manager Sean Stegall.

These include a penthouse hotel stay, custom Ray-Ban sunglasses, retirement gifts, unused hotel rooms, transportation costs, promotional spending, and Stegall's unpaid severance agreement.

During a Town-funded conference trip, Stegall stayed in a penthouse accommodation at Hotel Van Zandt.

The charge was approximately $3,419.

Stegall submitted a Lost Receipt Form that described the expense as a "hotel for multiple staff." When asked why the receipt was unavailable, he wrote, "Don't remember who booked."

Investigators contacted the hotel and obtained the itemized receipt themselves. According to the Auditor, Stegall was the only Town employee who stayed at Hotel Van Zandt. Other Cary employees attending the trip stayed at a nearby hotel.

The Town spent $1,600 on 10 pairs of Ray-Ban sunglasses for Council members. Each pair had "Cary" printed on the earpiece.

The Town Clerk told investigators that the sunglasses were purchased after an outdoor event where Council members had been blinded by the sun while taking a photo.

According to the Clerk, Stegall wanted "the highest of the high" and demanded the highest level of sunglasses available. She also said that items purchased for Council members would generally be given to Stegall as well.

The report also identified $1,625 spent on two iPads given to retiring Town directors. Town officials said additional gifts, beyond the iPads, were purchased using personal money voluntarily contributed by other directors.

The report highlights $5,843 in cancellation fees at the Courtyard by Marriott in Cary for a Quarterly Council Meeting planned for May 2025.

According to the Town Clerk, two possible dates were reserved while officials decided when to hold the meeting. After choosing one date, the Town waited too long to cancel the second reservation and was charged a cancellation fee.

The report also identified $1,638 in no-show charges for three hotel rooms in Pittsburgh that were charged to Stegall's procurement card in June 2024.

Town officials told investigators they were unaware of any business purpose for that trip.

The Town spent $733 on an executive van to transport attendees from Cary Town Hall to the Wake County Mayors Association Holiday Dinner at 12 Oaks Golf Course in Holly Springs.

The destination was approximately 12 miles from Town Hall.

The report notes that Council Member Sarika Bansal attended the event but drove herself and did not use the van.

Cary also purchased eight tickets to the dinner at $100 each, bringing the identified ticket and transportation expenses to $1,533.

The Town spent approximately $305 on a room at The Mayton for a Raleigh-based social media influencer who attended Cary's Lazy Daze festival.

The influencer posted about the event and tagged the Town's Instagram account, but the Auditor noted that the post did not disclose that Cary had paid for the hotel room.

The report says it was unclear what benefit the Town received from paying for the stay.

Cary spent $108,714 with Poole Printing during 2024 and 2025 to print and mail flyers about changes to Council districts, election dates, and Town resources.

The flyers included the names and photographs of Council members. The Town also paid $3,571 in procurement card processing fees that the Auditor said could have been avoided by paying through check or electronic bank transfer.

Several Council members told investigators they had concerns about the mailings. Former Council Member Jennifer Robinson said their distribution during election season felt like "free advertising" for candidates running for office.

The report also mentions $100 spent on a Mariah Carey cardboard cutout for a promotion in which Cary temporarily changed its spelling to "Carey."

The cutout later traveled with Town staff to a conference in Salt Lake City. Cary initially could not tell investigators whether transporting it had created an additional expense, but later said it was brought onto the flight as a carry-on at no extra cost.

Stegall was placed on paid administrative leave on November 20, 2025, and resigned as Town Manager on December 13.

Cary agreed to provide him a conditional lump-sum severance payment of $194,832, equal to six months of his salary.

The agreement required Stegall to:

According to Town officials, Stegall refused to comply with those conditions.

Cary never paid the $194,832. According to the report, the conditions were never satisfied, so the severance was withheld, not paid and later recovered.

On January 23, 2026, the State Auditor's Office met with the Wake County District Attorney and the North Carolina State Bureau of Investigation to provide a preliminary overview of purchases made by Stegall that appeared potentially fraudulent.

The report does not identify which specific purchases were included in that referral. The Auditor said those details were withheld to protect the integrity of any investigation that could result.

A referral does not mean Stegall has been found guilty of a crime or that every expense highlighted in the audit was considered fraudulent. It means the Auditor provided information to prosecutors and state investigators so they could determine whether further investigation or criminal charges were warranted.

The report does not announce any criminal charges. The Wake County District Attorney's office has confirmed that many of the issues in the report fall within the scope of an ongoing criminal investigation, while noting that not all mismanagement constitutes a crime.

Most of the Auditor's recommendations are addressed through broader reforms involving procurement cards, documentation, transaction reviews, Council travel, capital spending, and financial reporting. Cary is tracking its progress on each recommendation on its public Moving Forward Dashboard, with most policy changes targeted for completion between February and May 2027. Any new policies or ordinance changes will require a Council vote in an open meeting.

Moving Forward Dashboard: https://www.carync.gov/connect-engage/newsroom/bottom-line/moving-forward-dashboard