San Dieguito board accepts audit of school foundations, orders implementation plan and MOUs after public outcry

The San Dieguito Union High School District Board of Trustees voted Aug. 7 to accept independent audits of the district’s four school foundations and to direct the superintendent to prepare a detailed implementation plan addressing the auditors’ recommendations, including draft memoranda of understanding (MOUs) to formalize reporting and oversight.

John Dominguez of audit firm CWDL told the board the firm issued unmodified audit opinions for La Costa, San Dieguito Academy and Torrey Pines foundations, and a modified opinion for the Canyon Crest Academy Foundation (CCA) because a calculation of in‑kind contributions was missing from CCA’s financial reporting. “We did render an unmodified opinion on the financial statements for La Costa, Sandegito, and Torrey Pines, and we did modify our opinion on the financials for Canyon Crest Academy,” Dominguez said.

The board’s vote followed hours of public comment and a large number of speakers — including two Canyon Crest students whose research prompted the audit — who urged immediate reforms. “Implement the recommendations of the auditors. The MOU to establish clear financial reporting guidelines is a must,” one student told the board during the public-comment period.

The audit identified a range of weaknesses across foundations: inconsistent operating policies and procedures, gaps in expenditure controls and credit-card approvals, incomplete or inconsistent IRS Form 990 disclosures, missing documentation for certain investment and donor-restricted balances, and the failure to record some in‑kind contributions tied to district facility use. CWDL recommended standardized MOUs between the district and each foundation, routine financial reporting to the district, clearer donor disclosures and improved internal controls.

Speakers at the meeting described strong community support for foundations but said problems identified by CWDL had eroded trust. “The audit found dozens of issues — missing wage documentation, balance discrepancies and unclear reporting on renting school facilities,” one commenter said. Several parents and donors urged the board to require the CCA Foundation to lower its administrative allocation; the audit record and commenters noted CCA had reduced a previously reported 25% administrative allocation to 20% after the audit was released.

Regina Toomey, the new executive director of the CCA Foundation, told the board the foundation is working with the district to correct findings and sought to clarify the public concern about fees: “When a donor gives to a specific team, for example, girls soccer, 80% of that donation goes directly to the team. The remaining 20% stays within the athletic program to support shared resources that benefit all athletes,” she said.

Board members pressed the auditors and staff on materiality, the extent of adjustments and next steps. Trustee Allman and others asked for clarity on whether donors can give directly to teams and how the foundation allocates overhead. Auditor Dominguez said CWDL performed the engagement under generally accepted audit standards, that the Canyon Crest adjustments recorded as part of the audit totaled roughly $50,000 in journal entries, and that the modified opinion reflected an omitted fair‑value calculation for in‑kind facility usage rather than evidence of theft. “We did not see any direct indication of fraud in our testing,” he said.

After discussion, the board approved a motion to accept the CWDL reports and to direct the superintendent to return with an implementation plan addressing all audit recommendations for board review. The motion, as amended, specified that the implementation plan should include a concept for MOUs with each foundation to formalize reporting requirements and transparency measures.

Superintendent Dr. Stafieri told the board she would work with staff and foundation leaders on a fall schedule of deliverables and said the district already receives about $5 million a year in foundation support. “We look forward to collaborating in the spirit of continuous improvement to enhance our operational relationship,” she said.

The board did not take disciplinary action at the meeting; it accepted the auditors’ reports and set direction for next steps. Trustees said the next items will include a plan from the superintendent with timelines, an outline for the MOU concept and follow-up reporting to the board on implementation.

What’s next: The superintendent will present an implementation plan to the board this fall that details how the district and each foundation will address the auditors’ recommendations, how routine reporting will be structured, and proposed MOUs intended to clarify reporting, facility use authorizations and donor disclosures.