The full audit is more than 2,000 pages, which illustrates how extensive it is. The state auditor calls it a detailed review of how town credit cards were used, questionable spending, councilmember pay and benefits, the town's finances and workplace issues.
The investigation began in November when Cary town leaders placed Sean Stegall on paid administrative leave after questions were raised about the town's spending.
Stegall resigned in December 2025.
The report details what investigators say was public money spent in ways that appear excessive.
"The spending exposed in the Town of Cary must be addressed with greater oversight and accountability," said State Auditor Dave Boliek. "Public dollars being thrown around carelessly while taxes are being raised only creates distrust in government. This report brings spending to light and shows a true accounting of where tax dollars go in Cary. The public has a right to be frustrated, and hopefully this will result in much-needed financial restraint and discipline in the future."
Findings so far
"Investigators say they identified 'excessive food purchases or meals with no clear business purpose."
- Thousands of dollars in hotel stays
- Councilmember Lori Bush's tuition, which she later repaid.
- One million dollars used for land purchases that councilmembers weren't informed of.
- $65,000 paid to a ghostwriter for a book about former town manager Sean Stegall's management style
- Annual car allowances of nearly $10,000 for councilmembers.
- Dinner expenses including two $120 20-oz ribeye steaks and a $4,164 dinner for Town Council.
- $1600 spent on Ray-Ban sunglasses for Town councilmembers stamped CARY.
Cary's response that's included in the audit: "The work of the OSA and others has helped us identify gaps in oversight, process, and culture. 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 strengthen the systems that failed to prevent it, and ensure our practices reflect the standards our employees and community expect."
Last year, the state auditor says a forensic review found potential fraud and possible criminal activity.
The Wake County District Attorney, Lorrin Freeman, also requested a separate criminal investigation earlier this year. Freeman says that investigation remains open and her office will review the report before commenting.
"We are in the process of reviewing the State Auditor's report which was just released. Many of the issues identified are within the scope of our ongoing criminal investigation. Our work will be centered on identifying areas of mismanagement that also may be violations of the criminal law. Not all mismanagement constitutes crimes. We appreciate the work of the State Auditor's Office and the ongoing cooperation of the town of Cary's officials," Freeman said in statement to ABC11.
WATCH | State Auditor's full news conference
NC auditor's office releases report on former town manager's spending: Full Newser
ABC11's Cindy Bae is continuing to dig through the report and will bring you any new developments throughout the day.
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