Cherry Bekaert Audit Finds Material Weaknesses, Tone at Top Under Cary's Stegall

An independent audit by Cherry Bekaert identified material weaknesses in Cary’s internal controls and flagged deficiencies in the “tone at the top” under former Town Manager Sean Stegall, findings that sharpen scrutiny of town governance as multiple investigations proceed. Audit Director Lee Ann Watters delivered the results to the Cary Town Council and tied the weaknesses to leadership and employee perceptions about reporting misconduct.

Watters told council, “Your former town manager did not always adequately communicate the importance of compliance with policies and procedures, accountability, and other internal control responsibilities. Unfortunately, we learned that employees did perceive that there was a risk of retaliation if they raised concerns.” She recommended strengthening reporting mechanisms, saying, “We further recommend that you consider strengthening your reporting mechanisms. So what you might sometimes call whistle-blower mechanisms and particularly your anti-retaliation protections that are provided to employees.”

The audit covers fiscal year 2025 financial statements and was presented during a council meeting. The town’s finance director, Kimberly Branch, at the same meeting presented FY2025 results and said Cary remains in a strong fiscal position, citing “nearly $23.6 million net in fiscal year 2025” and a “total fund balance at $106 million.” Branch called the numbers “very positive and exciting news.” Those figures stand alongside the governance findings, leaving residents and elected officials to reconcile fiscal health with concerns about control and transparency.

Sean Stegall stepped down as Cary town manager in December 2025 after a decade in the role. His departure followed revelations that included a questionable land deal and the town paying Councilmember Lori Bush’s tuition. The independent audit’s findings arrived as several external and internal probes continue: the North Carolina State Auditor’s Office is investigating alleged fraud, waste, and abuse; the State Bureau of Investigation is determining whether evidence supports a criminal inquiry; and the Wake County District Attorney is also engaged. Cary town leaders have retained private counsel to review specific spending, and the town will pay Womble Bond Dickinson up to $150,000 to examine procurement card and reimbursement transactions.

Public reaction at the meeting reflected unresolved concerns. Neighbor Hanif Williams said, “All of those numbers, and we still are not clear on where we stand in that. So, again, I'm still perplexed and confused.” Mayor Harold Weinbrecht acknowledged multiple probes and the need for stronger procedures, saying, “I have a feeling it won't be very rosy, but we will hear from them. We also have the DA and the SBI looking into things. I don't know if they'll find anything. We have no idea, no information, what's going on with them. And then we have the internal investigation where they will try to come up with additional policy and procedure changes to make us stronger.”

The independent audit did not review 100 percent of transactions in fiscal year 2025, and officials described the audit process as still unfolding. For Cary residents, the immediate implications are clear: municipal finances appear stable on paper, but governance failures tied to leadership culture have prompted multiple reviews and an outside legal engagement. Watch for the final Cherry Bekaert report, the Womble Bond Dickinson review, and updates from the State Auditor, SBI, and Wake County District Attorney to see whether policy changes, reimbursement accounting, or legal actions follow.