A financial audit for the foundation that handles fundraising for Canyon Crest Academy is now out, and the students who spurred the audit said they feel vindicated.
Auditors found inaccurate financial reporting, missing records and more.
“Many of our key points were vindicated by the report," Litong Tian said. "For example, they confirmed that the foundation failed to disclose salaries under IRS form 990s, which was what we claimed. They confirmed that their balance sheets did not line up — another one of our claims.”
Last year, Tian, along with Kevin Wang, published a report that detailed irregularities they found with the bookkeeping at Canyon Crest Academy Foundation (CCAF). The Foundation raises and manages money for student clubs.
In their report, Wang and Tian found that the foundation charges significantly higher fees than other school foundations in the district. Other foundations charge between 5% to 10%.
"They took the 25% fee off the top of donations. And to top that, they took so long to reimburse for expenses," Wang said. "It's just way too high for what little they're providing for these clubs."
Both Wang and Tian have since graduated and are heading to college this fall.
After the report was published, the San Dieguito Union High School District ordered an independent audit of all school foundations. That audit was released this week. It found 16 issues. Some were minor, such as missing memorandums of understanding (MOU) between the district and foundations.
The audit also found discrepancies between the CCAF’s records and previously audited balances and tax returns.
"That's why we think it's so important for the district to release an MOU with all the foundations," Tian said. "So there's a standard policy for financial reporting and for transparency.”
"In an email to KPBS, CCAF president Sandra Sincek said the foundation has taken steps to “improve and strengthen” its operations. Students and their families remain the foundation’s “top priority,” she said.
“We are proud of the work we’ve done in the community and remain fully committed to transparency, accountability and continuous improvement,” Sincek said.
The foundation has also lowered its fee to 20%, Tian said, it's an important first step, but more needs to be done.
"But we would like to see it go down further," he said. "When the district releases their MOU with the foundation ... we want to see a standard set of guidelines, a standard set of policies that apply to all foundations. So that way, the CCA Foundation's fee would be in line with the other three foundations in the district."
The report will be presented to the district at its meeting Thursday evening. The board is not expected to take any action at the meeting. Wang and Tian hope the district will implement some, if not all, of the auditors' recommendations.
