Cary town officials and residents got a detailed look at the results of an independent audit into the town's financial statements in fiscal year 2025 during a council meeting on Thursday night. Cary’s finance director also presented the annual financial results for the same fiscal year.
An opinion from independent auditing company Cherry Bekaert, LLP uncovered material weaknesses in the town's internal control, starting with former Town Manager Sean Stegall.
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“The result of our procedures did indicate that the former town manager did not always model or reinforce the ethical behavior that is laid out in your policy,” said Audit Director Lee Ann Watters.
Stegall resigned after being placed on administrative leave following a public records request revealing a series of major expenses that much of the town council, including the mayor, say they were unaware of.
The audit results discussed in Thursday’s meeting showed Stegall did not emphasize the need for compliance or accountability.
The second material weakness was a missing financial report from the town related to $2.1 million in grant expenses eligible for reimbursement.
Watters confirmed that the grant expenses misstatement was corrected by town officials.
She also referenced a reported fraudulent check for $1.3 million that was perpetrated against the Town of Cary by an outside source in April of 2025. Watters says it was reported to the police, and the town did not suffer a financial loss. She says the State Auditor and the Wake County District Attorney have initiated separate investigations into the activities.
Otherwise, Watters said the results were mostly clean.
"There were no conditions or events noted that gave us any indication that there was a doubt about the town's ability to continue as a going concern," Watters said.
During Thursday’s meeting, Cary's Director of Finance, Kimberly Branch, said the town is in "good financial position”, based on the town’s year-end fund balance, consistent utility results, and its position to advance on financial management.
Branch highlighted stats, including the town’s nearly $23.6 million net in fiscal year 2025, which put the town’s total fund balance at $106 million.
"It is very positive and exciting news," Branch said.
But the results presented did not answer many questions and concerns about the former town manager's overspending and lack of transparency.
After the meeting, WRAL News asked Hanif Williams, a Cary neighbor who previously asked town council members to step down, how he felt about the results.
“All of those numbers, and we still are not clear on where we stand in that,” Williams said. “So, again, I'm still perplexed and confused."
The independent audit did not review 100% of the town's transactions in 2025. The State Auditor, Wake County District Attorney, State Bureau of Investigation, and a private law firm are also investigating the town's finances and the former town manager.
