Audit fallout: San Dieguito board moves on CCAF reforms
After a fiery meeting, trustees move to tighten transparency rules across all district foundations, following 14 major findings in the CCAF audit
ENCINITAS — The San Dieguito Union High School District Board of Trustees is moving forward with action amid the fallout from an explosive report and subsequent financial audit regarding the Canyon Crest Academy Foundation.
The board met on Thursday and engaged in heated exchanges throughout the item, but finally directed Superintendent Anne Staffieri to draft a memorandum of understanding with the district’s four educational foundations — Canyon Crest Academy, La Costa Canyon, San Dieguito Academy and Torrey Pines. The board also directed Staffieri to ensure “transparency” is baked into the MOUs.
The CCAF has been under fire for the past year after two former students — Kevin Wang and Litong Tian, both 18 — founded Ravens for Transparency and published a report in September 2024 detailing how the foundation appeared to mismanage funds for the CCA’s robotics team. The two found multiple inconsistencies with financial reporting, missing IRS documentation, a lack of disclosure of the executive director’s salary, CCAF charging a 25% fee on donations, and at least $3.5 million in unexplained “other program expenses,” among many other issues.
“We were right on so many issues,” Tian told the board. “The question today is what now? What happens from here? My goal is to make sure that CCAF functions better for students and the community. My goal is not to decrease donations. The MOU establishing clearer financial reporting guidelines is a must.”
The item has been a source of contention among the board, along with dozens, if not more, of parents and supporters of CCAF. SDUHSD Chairwoman Jodie Williams said she wanted to move as quickly as possible through the item, asking other trustees to limit their comments and questions to 10 minutes. She said she wanted trustees to keep their comments to those “necessary” to approve accepting the audit report.
However, Trustee Michael Allman objected, saying it was the most important item of the night and also challenging who defines “necessary.” Allman peppered John Dominquez of CWDL, the external auditing firm, regarding 14 findings about the financial mismanagement and other concerns.
After 10 minutes, Williams interjected and cut off Allman, saying that other board members have questions and comments. This sparked an emotional and fiery exchange between Allman and Williams, with Williams saying she has the right to call for the vote and move on if Allman didn’t move faster. Allman told Williams, “You are again trying to shove this under the rug.”
He then asked several more questions before Trustees Phan Anderson and Rimga Viskanta joined the discussion. Viskanta said the audit showed the missteps but noted how the audit didn’t show any fraud or illegal conduct.
Allman disagreed, saying the foundation failed the audit on multiple levels.
Regardless, Viskanta said the CCAF is a great resource in providing support for the students, after-school programs, athletics and more. She said the organization helps buy jerseys, pay coaches, and fund travel, to name a few.
“A concern was raised with one foundation, and they circled the wagon. People who are hiding don’t hide their books,” she said, amid jeers from some in the audience, saying the foundation had no choice as the Board of Trustees approved the audit.
Trustee Jane Lea Smith, meanwhile, recused herself. She said she was recusing herself as she was a former CCAF board member and wanted to avoid any potential conflicts of interest.
Allman, meanwhile, said nobody knows where the 25% went and asked the board why Williams and Viskanta didn’t want to follow up.
The audit
CWDL found 14 findings relating to the foundation’s operations, financial records and more. Dominguez said the firm was given full access to all the foundations’ books and financial records. He said they used a sample size of 1% to 2% of the foundation’s total assets from the 2023-24 fiscal year to conduct the audit.
(Below Litong Tian speaks to the SDUHSD Board of Trustees on Thursday.)
Dominguez said since the foundations lack a formal MOU agreement with the district, it can lead to issues, such as engaging in best practices for financial reporting, expenditure and credit card payment controls, cash reconciliation, employment records, and more. CWDL also found and confirmed Wang and Tian’s initial reporting, with balance funds not matching from the end of one fiscal year to the start of another.
Also, in-kind donations were not tracked, and Dominguez also questioned the foundations’ practice of using district facilities without paying rent to the district or being offered a discounted rate.
“The district facility use is a big one for us,” he explained. “There is no formalized agreement in place to use. It should be examined and go to legal counsel to see what is appropriate. (We recommend) Establishing approved rates and elements when facilities are in use.”
Dominguez said much of CCAF’s operation lacked best practices in many areas and fell short in GAAP (generally accepted accounting practices). Due to those shortcomings, many parents and critics of the foundation are demanding the board approve a full forensic audit.
While a forensic audit is not required under GAAP, they are recommended when there is a credible suspicion of fraud, misappropriation of funds, whistleblower complaints, or an annual audit shows irregularities, among others.
Best practice recommendations from the American Institute of Certified Public Accountants, state regulators, and nonprofit oversight bodies state a forensic audit should be performed immediately upon suspicion of irregularities, following a leadership change in finance/management where concerns exist, and after material weaknesses are identified in internal controls during a regular audit.
Also, the California Attorney General’s Registry of Charitable Trusts can require a forensic audit if a nonprofit is under investigation. Federal agencies (IRS, DOJ) may also trigger a forensic audit if Form 990 discrepancies suggest mismanagement or fraud.
Reaction
Many in attendance praised Wang and Tian’s efforts, while the young men stressed to the board the need to continue to push for reforms. The CCAF lowered its fee structure from 25% to 20% earlier this year. The charge allocates money donated to the robotics team to a general fund.
(Below Kevin Wang speaks to the SDUHSD Board of Trustees on Thursday.
The two stressed their goal was never to hurt the foundation, but rather to highlight the shortcomings and engage in meaningful reforms to increase transparency.
Wang said the board must take immediate action to help with donations and regain trust with the community. Tian stressed for the board to implement CWDL’s recommendation for standardization for all foundations.
Even though the CCAF has enacted some reforms, such as the reduction in fees, the two said more must be done.
“The recently released audit highlights many glaring issues within the CCA Foundation’s practices, in addition to the highest 25% fees and missing salary disclosures; there are a dozen more problems,” Wang told the board. “Given these recommendations, it’s clear changes must be made. The foundation must take initiative on its own, which includes reducing fees, reconciling balances and increasing financial transparency.”
Former CCAF Board President Amy Caterina ripped the foundation and district for perpetuating financial mismanagement. She said it began when CCAF hired former Executive Director Joanne Couvrette and then CCA Principal Brett Killeen.
She said she’s been fighting against the toxic culture at the foundation, district, and Board of Trustees for the past 10 years, saying the district’s “willful ignorance” regarding Couvrette and Killen only emboldened the pair and dismissed previous concerns.
Caterina offered three solutions — firing Killeen, forcing CCAF off campus, and censuring Smith. Caterina said Smith cheated in her campaign, served on the CCAF board during the time of financial malfeasance, and then tried to cover it up.
“I don’t think for a minute that this problem has been solved,” Caterina added. “A complete forensic audit must be conducted. Accounts must be reconciled; overcharges must be returned to the program from which they were stolen. I couldn’t be prouder to celebrate the work of Kevin and Litong. They stood up to liars, bullies, cheaters and thieves.”
Regina Twomey, who was hired in July as the new executive director of CCAF, said the foundation has acknowledged the audit findings. She said she would be concerned if no issues were found, but is working closely with the school and district on those findings. As for the fees, she said those help all students and athletes, plus maintaining facilities.
Supporters of the foundation, though, said the audit was sufficient and identified problem areas with the foundation. Katrina Young, the former chair of the Board of Trustees, said the board must stay on its current path and follow the recommendations of CWDL.
She cautioned any changes in the process could do more harm than good, noting there is nothing to be gained from calls of victory. Young said the true victims are students.
Others, meanwhile, targeted Allman for his association with JenEd, owned by Jennifer Ramirez. Her company advocates and works with parents and students on individual educational and 504 plans, special needs assessments and more.
Jen Charat told the board the foundation has been caught in a storm of hatred as outrage traveled faster than facts, calcifying into a narrative. She said LCC had as many issues as CCAF, but hasn’t been vilified, while the 25% has been a key success in making the school the third-best public high school in the state.
“The glee on display here tonight is not aligned with any of the audit’s posted,” she added. “The narrative is misguided, again. Will it ever stop? With the audits, we have a mirror. None of our four audits are perfect. They all have gaps. These are structural issues, nothing near failure.”
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EXCELLENT journalism, Steve Putersky!
I watched the 8/7/25 Board meeting, and your reviews are so accurate, thank you!
Taxpayers Oversight for Parents and Students of San Dieguito Union High School District (TOPS of SDUHSD) appreciates you!