Five new things state auditors found in their Town of Cary investigation
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- The State Auditor found Town Manager Sean Stegall bullied staff and acted erratically.
- Reports indicate Stegall intimidated staff and sometimes silenced a council member.
- Cary's procurement card use exceeded other major North Carolina municipalities.
Here are five new things revealed in the state auditor’s investigative report on the Town of Cary:
Bullying by town manager
Town Manager Sean Stegall bullied staff and displayed erratic behavior. This was alluded to when the town announced his resignation, but the report provides more detail.
“OSA (Office of the State Auditor) received reports from both Town staff and council members of intimidation, pressure, bullying, and erratic behavior on the part of Mr. Stegall. One employee said that Mr. Stegall ‘blowing up’ in a meeting became increasingly frequent over time. ‘He became very emotional and very loud or he might disappear.’ One Councilmember told us that at times Mr. Stegall would not allow her to speak or voice concerns, even threatening to shut down projects for her district.
“During our interview with the Town Clerk, she told us more about her experience working with the former Town Manager. ‘[Y]ou could never go against [Mr. Stegall]. You could never tell [him] ‘no.’ [Mr. Stegall] always wanted the best. You could never say no to him. If you did, you were picked on, you were marginalized, all these things.’”
Excessive use of procurement cards
Procurement card use in Cary went way beyond other North Carolina major municipalities.
The audit found 62% of Cary employees had been issued a procurement card, compared to 10% in Charlotte, 16% in Raleigh and 15% in Durham. Auditors found numerous, previously unreported examples of improper or questionable spending and a lack of supporting documentation, particularly from Stegall. Charges included a $490 dinner at an Atlanta steakhouse for two people; $2,205 for a “bond watch party” at a Cary restaurant; and $2,131 for an unnecessary stay for town employees at a Nashville hotel the night before a conference.
Town council members’ perks
In addition to part-time salaries, council members receive annual allowances of $9,626 for vehicles ($10,950 for the mayor) and $2,460 for phone, internet and other digital devices. Council member Sarika Bansal has turned down the allowances, while Council member Bella Huang opted for a town cellphone instead of the digital allowance. The vehicle allowance is $528 more than the average annual car payment.
Severance not yet paid
Stegall has not been paid a lump-sum severance of $194,832 because it was based on his returning town property and providing access to his text messages associated with town business.
“According to Town officials, Mr. Stegall refused to comply with these conditions and therefore did not receive this severance.”
Bad information on fund balance
Stegall repeatedly and wrongly told officials the town had not fallen below its fund balance, which is a sum of money equivalent to 33% of budget general fund expenditures set aside in case of emergencies. In fiscal years 2023 and 2024, the town fell below the fund balance before recovering in fiscal year 2025.
“Nevertheless, during a Quarterly Council meeting in November 2025, Mr. Stegall stated multiple times that the Town’s Fund Balance had not — nor had it ever — fallen below its minimum threshold. Whether he knew that the Town had fallen below the Fund Balance threshold is uncertain.
“Former Councilwoman Jennifer Robinson told investigators, ‘We had a work session after I was unelected, but before we had the review of [Mr. Stegall]. And in that work session [Mr. Stegall was asked], ‘Have we ever broken our Fund Balance Policy?’ And [Mr. Stegall] was like, ‘No! We’ve never broken the Fund Balance Policy.’
This story was originally published July 16, 2026 at 1:28 PM with the headline "Five new things state auditors found in their Town of Cary investigation."