State auditor questions $121K spent on Cary video production during Wilmington retreat

WILMINGTON, NC (WWAY) — The North Carolina Office of the State Auditor has released an investigative report detailing what it describes as questionable spending practices, weak financial oversight and policy violations involving the Town of Cary’s use of taxpayer dollars.

According to the report, investigators found town officials violated spending procedures and identified tens of thousands of dollars in purchases that either lacked a clear government business purpose or appeared excessive. Those expenses included high-cost meals, alcohol purchases, hotel cancellation and no-show charges, travel expenses, council-related purchases and spending tied to retreats and promotional activities.

Among the largest expenses highlighted was $121,314 spent on video production for the Town of Cary’s 2024 retreat in Wilmington. According to investigators, the money paid for filming a performance at the retreat and producing a documentary about how the performance came together.

The report also questioned $65,653 spent on a ghostwriter to write a book about former Town Manager Sean Stegall, $37,301 in graduate school tuition paid for a councilmember before it was later reimbursed, and more than $1 million in property purchases made by Stegall without full Town Council review.

Other purchases cited in the report include:

• A dinner for two in Atlanta that featured two $120 ribeye steaks and a $48 glass of wine.
• $4,164 for a Town Council and staff dinner at Rey’s Restaurant in Raleigh.
• A $3,419 penthouse hotel stay for former Town Manager Sean Stegall.
• $733 for an executive van to transport town employees 12 miles to a Wake County Mayor’s Association holiday dinner.
• $1,600 for 10 pairs of Ray-Ban sunglasses for councilmembers.
• Annual car allowances of $9,626 for each councilmember.

Investigators also found Cary had 828 Town VISA cards, with more than 62% of town employees issued a purchasing card. The State Auditor noted that rate is far above the average of 16% among North Carolina’s nine other largest municipalities.

Between January 2024 and December 2025, town employees made more than 60,000 purchasing card transactions totaling $24.2 million.

The report also found that more than $100,000 in purchases were missing receipts or lacked itemized documentation, making it difficult to determine whether public funds were spent appropriately.

In addition, investigators said the town’s fund balance fell below its minimum policy threshold in recent fiscal years while spending outpaced revenue and property taxes increased.

State Auditor Dave Boliek said the findings show the need for stronger oversight and accountability.

“The spending exposed in the Town of Cary must be addressed with greater oversight and accountability,” Boliek said in a statement. “Public dollars being thrown around carelessly while taxes are being raised only creates distrust in government.”

The report recommends tighter controls over Town VISA cards, improved financial reporting, clearer reimbursement policies, stronger approval requirements for major purchases and greater transparency over taxpayer spending.

The State Auditor’s Office said some purchases have been referred to the Wake County District Attorney and the State Bureau of Investigation. Investigators declined to release additional details to protect the integrity of any potential criminal investigation.

The Town of Cary’s response to the findings is included in the report, along with an appendix detailing all Town staff purchasing card transactions reviewed during the investigation.