Discrepancies in financial records. Inaccurate reporting of financial activities. Missing documentation to justify expenditures.
An audit initially prompted by two Canyon Crest Academy seniors who last year investigated their school’s nonprofit foundation has found a number of instances of financial mismanagement by San Dieguito Union High School District’s school foundations.
The audit said the foundations’ inaccurate financial reporting raises the risk of fraud and misappropriation of funds. And its findings raise questions as to whether some foundations may have violated accounting standards and federal tax laws.
The audit also found that Canyon Crest Academy Foundation in particular was missing employee I-9 files required by federal law for employment eligibility verification — an issue that auditors said could expose the foundation to legal penalties.
The audit report released Monday raises questions about whether there is sufficient accountability and oversight for San Dieguito’s four high school foundations.
The foundations raise private money from students’ families and other donors to fill in gaps in programming, supplies and other needs at schools that aren’t covered by state funding. The foundations are nonprofits run independently of the district, typically by a few hired staff members as well as parent volunteers.
According to the audit, the foundations — which altogether report millions of dollars in revenue — do not have comprehensive written policies or procedures to guide their operations.
They also have not been following proper financial controls. For example, some foundations have not been regularly reconciling their accounts and have made some expenditures without proper prior approval or supporting documentation, such as receipts or invoices, according to the audit.
Among the audit’s other findings: Foundations were failing to report in-kind donations, were not tracking which assets have donor restrictions and were not recording investment activities in general ledgers.
For Canyon Crest Academy Foundation, the audit found discrepancies between the foundation’s own records and previously audited balances and filed tax returns.
Meanwhile, the foundations have been operating with no formal oversight from the San Dieguito school district — even though the foundations are included in San Dieguito’s own financial audit.
The school district does not have a formal written memorandum of understanding or agreement with any of the foundations, the audit found. The district should have such MOUs, the audit said, to establish expectations regarding operational responsibilities, use of district facilities and oversight, such as requiring regular financial reporting from the foundations to the district.
The audit, which focused on the foundations’ activities for the 2023-24 fiscal year, was completed by the San Diego-based CWDL auditing firm.
Its review was prompted by an investigation into the Canyon Crest Academy Foundation published almost a year ago by Litong Tian and Kevin Wang, then high school seniors at Canyon Crest. Both graduated in June.
Kevin Wang (left), and Litong Tian (right), at Pacific Highlands Ranch Park in Carmel Valley on Aug. 5, 2025. (Ariana Drehsler / For The San Diego Union-Tribune)
Their report scrutinized the foundation’s financial practices, particularly its practice of taking a hefty cut of the donations made to student clubs to pay for general funds and foundation administrative costs. They also noted that the nonprofit had failed to report its executive director’s pay for multiple years of federal tax filings, as required.
Canyon Crest Academy Principal Brett Killeen responded to their report by attacking it in a school-wide email to families, calling it “grossly erroneous” and saying the student authors needed to be educated on how “to communicate effectively, following appropriate norms and with civility and accuracy.”
The foundation also condemned the report, calling its allegations false and criticizing how the students went about publishing it.
But the students’ work also generated acclaim from community members who praised their ingenuity and courage in holding the foundation accountable in the face of backlash from school administration.
The audit released this week supported Tian and Wang’s concerns about the fees and executive director salary reporting, in addition to finding several new issues.
The audit agreed with Tian and Wang that the fees taken from student clubs were inconsistent — Canyon Crest was charging significantly more, 25%, than the other three foundations, which charged 5% to 10% — and like them found that the fees were not always clearly communicated to donors.
In an interview Tuesday, Tian said he feels vindicated by the audit, since it confirmed several of his and Wang’s findings and showed their concerns about the foundation were valid.
“It feels like we’ve been credited for our work,” Wang said.
The two said they agree with the audit’s recommendations and want the foundation to implement them.
“I just want the foundation to work better for the students,” Tian said. “I feel optimistic with the recommendations from the auditors that the foundation can finally accept the reality of what happened, and accept the recommendations in order to regain the trust of the community.”
Wang, 18, is starting at Indiana University, and Tian, also 18, is starting at Cornell University this month. Both plan to major in business.
In an email, Canyon Crest Academy Foundation President Sandra Sincek said the nonprofit has already taken steps to “improve and strengthen our operations.”
The foundation has refiled five years worth of tax filings, she said. The foundation has also reduced the fee percentage taken from student club donations from 25% to 20% and revised its fee structure, she added.
Sincek added that the foundation has written a corrective action plan based on the audit’s findings.
“Our top priority remains the students and families we serve,” Sincek said. “We are proud of the work we’ve done in the community and remain fully committed to transparency, accountability and continuous improvement.”
The person who led the Canyon Crest Academy Foundation during the year that was audited was Joanne Couvrette, who was the nonprofit’s executive director for 12 years.
Couvrette said the foundation’s board fired her in May 2024 for making a Facebook post in which she referred to pro-Palestinian protesters as “terrorist sympathizers.” She sued the foundation in February, alleging wrongful termination.
Couvrette could not be reached for comment.
Leaders of the three other high school foundations — La Costa Canyon, San Dieguito Academy and Torrey Pines High — said they appreciate the audit and are committed to transparency. They said the recommendations will help them improve their operations, and they will work with the district in doing so.
Joe Austin, the executive director of Torrey Pines’ foundation, said that in some cases the audit’s findings may convey sloppy operations by the foundations when the nonprofits may be trying to do what’s best for students.
For example, he said his foundation may not always be able to immediately get prior approval for spending if they’re paying for already-budgeted items, such as tennis balls for a coach who just ran out and needs more promptly.
Still, Austin said: “We’re looking to do whatever we can do to approach complete transparency about the money we take in and what we do with it to improve the education for kids.”
The San Dieguito school board will discuss the audit’s findings and potential follow-up actions at its meeting on Thursday at 6 p.m., at the district office located in Encinitas at 710 Encinitas Boulevard.
Originally Published: August 5, 2025 at 5:21 PM PDT