State audit details lax oversight, high-volume card use in Cary
The North Carolina Office of the State Auditor released a more than 2,600-page report that documents a pattern of questionable spending and weak financial controls in the Town of Cary. The audit follows the resignation of former Town Manager Sean Stegall and identifies procedural violations, missing receipts and purchases that lacked a clear government purpose.
Investigators examined procurement card and other spending records and found an unusually high number of employees issued town credit cards, a large volume of small-dollar transactions and numerous purchases that the audit characterizes as excessive or lacking documentation.
| Measure | Figure |
|---|---|
| Town VISA cards issued | 828 |
| Employees with a Town VISA card | More than 62% |
| Card transactions (Jan 2024–Dec 2025) | 60,000+ |
| Transaction total | $24.2 million |
Examples of questioned spending
- $37,301 paid for a councilmember’s graduate tuition, later reimbursed.
- $65,653 paid to a ghostwriter for a book about the former town manager.
- More than $1 million spent by the former town manager on property without documented full council review.
- Over $100,000 in purchases were missing receipts or lacked itemized documentation.
The audit also cites high-cost meals, alcohol purchases, hotel cancellation and no-show charges, travel expenses, council-related purchases and spending tied to retreats and promotional activities as areas of concern.
“The spending exposed in the Town of Cary must be addressed with greater oversight and accountability,” State Auditor Dave Boliek said. “Public dollars being thrown around carelessly while taxes are being raised only creates distrust in government.”
Scope and immediate consequences
The report highlights that Cary’s rate of employees with procurement cards—about 62%—is far above the average of 16% in nine other largest North Carolina municipalities cited by auditors. That abundance of cards, the audit concludes, contributed to insufficient controls.
Town leaders have already faced political and operational consequences: the resignation of the town manager and a public debate over spending and oversight. The audit’s findings could shape Cary’s budgeting and internal control changes, including stricter procurement policies, limits on card issuance and enhanced audit capacity.
What residents should watch for next
How Cary’s elected leaders respond matters for local taxpayers and for Wake County’s broader fiscal practices. Potential next steps that could affect town operations and budgets include:
- Policy changes reducing the number of procurement cards and tightening allowable expenses.
- Hiring or expanding internal audit and budget oversight roles to monitor compliance.
- Council review of past purchases and possible recovery or repayment where policy was violated.
The audit provides a granular accounting of where tax dollars flowed and frames immediate questions about accountability and fiscal discipline in Cary government. Residents concerned about the town’s financial stewardship can expect further action from the town council and administrative staff as Cary responds to the audit’s recommendations.
