News Summary
An audit has uncovered significant financial mismanagement within the San Dieguito Union High School District’s foundations, initiated by student investigations. Key concerns include discrepancies in financial reporting, missing employee files, and lack of oversight. Findings revealed unauthorized expenditures and failures to track donations, leading to serious implications for accountability and compliance with laws. The Canyon Crest Academy Foundation’s excessive fees on donations were particularly highlighted, prompting a commitment from other foundations for transparency and reform.
San Diego – An audit of the San Dieguito Union High School District’s school foundations has uncovered significant financial mismanagement. Conducted by the CWDL auditing firm, the audit was initiated due to an investigation led by two seniors from Canyon Crest Academy, Litong Tian and Kevin Wang. Their inquiries flagged numerous discrepancies in financial reporting that raise concerns about the potential for fraud and misappropriation of funds.
The audit outcomes have raised serious questions regarding compliance with accounting standards and federal tax laws among the various foundations linked to the district. A particular area of concern is the Canyon Crest Academy Foundation, which was found to be missing essential employee I-9 files, potentially exposing the foundation to legal penalties and complications.
Key findings of the audit reveal a glaring lack of accountability and oversight governing the district’s four high school foundations: Canyon Crest Academy, La Costa Canyon, San Dieguito Academy, and Torrey Pines. These foundations, which are independent nonprofit organizations, aim to generate private funds to support educational programs and needs not sufficiently funded by state resources. However, the audit indicated that these organizations lack comprehensive written policies and procedures that are critical for effective operational governance.
Several serious financial control issues were identified during the audit. These included inconsistent account reconciliations and unauthorized expenditures. Additionally, the foundations failed to report in-kind donations and did not track donor-restricted assets, compounding concerns over financial management transparency.
The audit revealed inconsistencies between the financial records of the Canyon Crest Academy Foundation and balances from earlier audits and tax returns. Alarmingly, the foundation also operated without any formal oversight from the San Dieguito school district, which means there were no clear operational guidelines or responsibilities defined by a written memorandum of understanding (MOU) between the district and the foundations.
Focusing on the 2023-24 fiscal year, the audit confirmed pieces of information contained in the students’ prior findings, particularly regarding excessive fees charged by the Canyon Crest Academy Foundation on donations made by students. While many nonprofit foundations charge between 5% to 10% for administrative expenses, it was uncovered that Canyon Crest Academy Foundation charged a steep 25%. Following this audit, the foundation has announced it will reduce its fee on student club donations from 25% to 20% and has revised its overall fee structure.
The audit’s findings come at a turbulent time for the Canyon Crest Academy Foundation, as the executive director at the time of the audit, Joanne Couvrette, was dismissed from her position in May 2024 after a controversial social media post. She has since filed a lawsuit against the foundation for wrongful termination.
In response to the audit’s findings, leaders from the La Costa Canyon, San Dieguito Academy, and Torrey Pines high school foundations have expressed a commitment to improving transparency and ensuring compliance with suggested reforms. The San Dieguito school board has scheduled a meeting to discuss the audit’s findings and the steps that need to be taken to address these significant issues.
The situation highlights the vital importance of oversight and accountability in school funding initiatives, as any mismanagement can have substantial implications for educational resources and programs intended to benefit students. Further investigations and discussions will likely shape the future of the foundations and their operational practices.
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Additional Resources
- San Diego Union-Tribune: Audit Finds Financial Mismanagement
- NBC San Diego: CEO Pleads Guilty to Fraud
- Times of San Diego: United Way Initiative
- Wikipedia: Financial Management
- Google Search: San Diego financial audit
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
