It's an issue that led to the resignation of Town Manager Sean Stegall.
Mayor Harold Weinbrecht said the Town embraced the state's involvement and that the state auditor's office first contacted Cary officials on Nov. 25.
"We welcome the assistance of the state in unwinding these issues associated with over-the-top spending and inadequate financial reporting, a lack of transparency with the full Council, staff, and citizens, and an unhealthy work environment created by Sean with many of the staff he worked most closely with," Weinbrecht said.
On Monday, the Town announced that Deputy Town Manager Russ Overton had been appointed as interim town manager.
The Town reached a $195,000 separation agreement with Stegall, who officially resigned Saturday.
Weinbrecht also said the law firm Womble Bond Dickinson had been hired to review Stegall's spending during his nine-year stint as town manager.
"Our finances are in good shape, and we appreciate the leadership that our interim town manager, Russ Overton, brings to help us resolve these issues and move us forward," the mayor added.