Cary residents demand answers after audit details questionable $1M spending

Cary residents are calling for accountability after a state audit detailed more than $1 million in questionable spending under former Town Manager Sean Stegall, saying new policies cannot undo money they believe was improperly spent.

The 2,600-page report, released Thursday by the North Carolina Office of the State Auditor found weaknesses in Cary’s financial controls, inadequate documentation and what investigators described as a culture of weak oversight by the town’s elected leaders of Stegall, who as town manager ran Cary’s day-to-day operations.

A separate independent review released by the town late Thursday echoed many of those findings, citing failures in procurement-card oversight, financial reporting and workplace culture. The review, paid for by the town and conducted by Womble Bond Dickinson, said Stegall significantly contributed to those failures but concluded the problems extended beyond one person. The firm found Cary's governance structure left elected leaders too dependent on information controlled by the town manager. 

State Auditor Dave Boliek’s investigation report highlighted spending on behalf of council members, including Ray-Ban sunglasses and car stipends, as well as spending by Stegall and other town employees —  expensive meals without clear business purposes, hotel cancellation fees and more than $121,000 spent on video production for a 2024 retreat.

During a town council meeting Thursday night, residents questioned why those expenses were not flagged earlier.

“I would love the refund,” said Tracy Filomena, a Cary resident of 31 years.

Council members acknowledged residents’ frustration but said the town cannot recover money that has already been spent.

Instead, the town council voted to raise residents’ property taxes 8% last month, saying they need the additional money to hire new police and fire staff, and blaming Stegall for not telling them those departments needed more help.

Stegall didn’t respond to requests for comment. 

The report by the state auditor suggested the council should’ve been more plugged into what was happening inside the town they were elected to lead.

"What the team found in the town of Cary is, quite frankly, a culture of extravagant spending of tax dollars by elected officials and the staff of the town of Cary," Boliek said Thursday.

In their formal response to the audit, Cary leaders pointed to changes they say will strengthen oversight, including restoring a previously eliminated internal auditor position and updating financial policies.

Mayor Harold Weinbrecht and interim Town Manager Russ Overton wrote that the findings exposed “gaps in oversight, process, and culture” and that Cary has a responsibility to identify how those failures occurred.

During Thursday’s meeting, Weinbrecht said council members received summarized financial information and didn’t know the full cost of several purchases and events until employees came forward late last year. “I like the analogy of boiling a frog in water slowly — that’s kind of the way it was,” Weinbrecht said. “We know now we should have.”

Residents at the meeting said council members need to have a clear understanding of financial materials going forward. “We elected our officials,” Filomena said.  “... Mistakes were made — and I think they are doing their best to acknowledge, and I just hope they continue to make things public.”

The auditor’s office said Stegall controlled information contributed to a workplace culture where employees feared retaliation for raising issues.

Stegall was hired in 2016 and resigned in 2025 after questions about his spending and management practices became public.

Council members said Thursday that while Stegall played a major role in the alleged failures identified in the audit, the town’s systems also failed to catch problems sooner.

Boleik recommended stronger rules around procurement cards, better documentation requirements and more financial reporting to elected officials.

Residents said those changes are necessary but said rebuilding trust will require more than new policies.

“We want answers and we want them now,” said John Welsh, a Cary resident of 23 years.