• The Canyon Crest Academy Foundation (CCAF) is a non-profit that processes donations to CCA, regulates school-affiliated organizations, and helps fund on-campus programs.

• Around May 2024, the Foundation quietly removed its Executive Director of 12 years without making a public statement.

• Many believe the executive director was fired due to the years of questionable conduct at the CCA Foundation while it was under her control.

• The CCA Foundation’s largest expense is completely unaccountable, which is extremely suspicious.

• This massive ambiguous expense, called “Other Program Expenses”, was nearly $700,000 in 2023 alone and has accumulated to over $3.5 million dollars over the past 12 years.

• The Foundation has a history of failing to report management salaries to the IRS, which is required under federal law.

• A large portion of the CCA Foundation’s “STEM General Fund” is allegedly spent on management salaries under the guise of supporting day classes and paying for shared expenses.

• The Foundation charges clubs excessive fees that  appear to be arbitrary charges compared to any other school in the district.

• The Foundation’s excessive bloat when dealing with finances often hinders the operations of on-campus organizations.

Click here for the Google Document version of our report.

(Data from CCAF’s 2022-2023 Financial Statements)

As you can see, with every major expense accounted for[1] (excl. Special Events), it is completely ambiguous what “Other Program Expenses” could be. Thus, this “Other Program Expense” represents nearly $700,000 spent in unknown places during 2023 alone. To make things worse, this massive cost is buried within hundreds of lines of financial jargon on their annual report, with virtually no mention of the expense anywhere else. Shockingly, over the past 10 years, “Other Program Expenses” have accumulated to over $3.5 million[2]. 

We find it extremely suspicious that the Foundation’s largest expense is left completely unclear. Miscellaneous expenses relating to the Foundation’s duties should be placed into the other categories for transparency, especially since it totals to millions of dollars. Donors should not accept that the Foundation’s largest expense is left completely vague.

Missing Salary Disclosures

Prior to the executive director's removal, based on the Foundation’s Form 990, we believe that the CCA Foundation only had two permanent, paid employees: Executive Director Joanne Couvrette and Finance Manager Gina Mahmood. Their names appear together as the sole paid employees of the CCA Foundation in their 2013 and 2014 Form 990. Furthermore, according to Joanne and Gina’s LinkedIns, the CCA Foundation has been their only place of employment since 2012, meaning that they have been employed at the CCA Foundation for 12 years.

The IRS states that the salaries of all of a nonprofit’s “current officers, directors, and trustees” must be disclosed in Part VII of the organization’s Form 990. From 2013-2014, the CCA Foundation applied this rule to Gina Mahmood, as her salaries were disclosed in the Form 990s during those years. However, from 2015 onwards, Gina Mahmood’s salaries have disappeared from the CCA Foundation’s Form 990 for unknown reasons. While Gina’s job as Finance Manager doesn’t necessarily require her salary to be disclosed since it is not technically an officer position, her role as de facto CFO and her status as one of just two paid Foundation employees means that her title should be reclassified as an officer and that her salary should be reported for the sake of transparency.

However, what is far more alarming is the lack of salary disclosure for Joanne Couvrette. Joanne held the powerful role of Executive Director, which is by definition a director position that requires salary disclosure. While her salary was reported from 2013-2014, no income was disclosed from 2015-2020 from those documents. 

Source: CCA Foundation 2015 Form 990, Section VII.

We would like to reiterate that federal law requires non-profits to report salaries of officers on their Form 990. It appears the CCA Foundation broke federal law five years in a row by not disclosing the salary of their Executive Director.

STEM Fund Issues

The STEM Fund is the CCA Foundation’s general fund for the 3 main school-affiliated STEM programs - Robotics, which includes both the Aluminum Narwhals and the Robo Ravens, Science Olympiad, and iGEM. The fund’s revenues are primarily generated by direct donations, donation fees from specific STEM programs, and grants. 

However the Foundation uses these donations to pay for what appears to be excessive salaries classified under“funding day classes and shared/general expenses”[3]. This does not appear to be a standard practice.

When donating to a specific STEM program, such as the Narwhals robotics team, 25% of the proceeds go to the STEM General Fund. This 25% fee also applies to specific Athletics and Envision programs. Most of the district's other non-profit fees do not exceed a 5% fee. 

Source: CCA Foundation Donation Portal.

Along with the 25% fee, the STEM General Fund itself takes in direct donations, which together are meant to fund STEM day classes and pay for shared/general expenses.

However, based on four years of STEM Fund financial data[4], a massive portion of the donations are actually spent on management expenses, which mostly consist of executive salaries. 

From 2018-2021, a whopping 44% of revenues have gone to management expenses every year on average.

Individuals and companies have been led to believe that the STEM Fund goes to pay for shared expenses and day classes. While this is true to an extent, the portion of money spent on management fees is beyond the norm compared to all other non-profit Foundations in the district.

Furthermore, since the 25% donation fee is also applied to the other general funds, we question if that the same exorbitant salary fee itemized as "shared expenses and funding day classes" occurs in the Athletics and Envision programs as well?

This is just one of many findings the foundation lacks in transparency across its operations, especially when it comes to management salaries and fees.

Excessive Fees

Source: Executive Director Salaries. CCA Foundation salaries from 2018-2020 are rough estimates as actual numbers were not reported, see spreadsheet for explanation. 

Prior to her recent removal, Joanne Couvrette was by far the highest paid executive director in the district[5]: from 2018 to 2023, she was paid 72.1% more than other SDUHSD Foundation directors on average.  This is especially noteworthy since prior to Joanne’s tenure (2004-2012), the CCA Foundation was completely volunteer-run[6] but still generated revenues comparable to the period immediately following Joanne’s arrival[7].

These high salaries could be made possible by charging on-campus organizations seemingly outrageous fees. In addition to charging a massive 25% fee off direct donations, for certain clubs like the Robotics team, the Foundation arbitrarily charges 28-34% of total club revenue every June to pay for management expenses (management salaries and overhead). 

This end of year charge is based on another arbitrary number, rather than a set percentage or amount.

Source: Robotics Financial Data.

Over the past 6 years, the Foundation has taken roughly $150,000 from the Aluminum Narwhals robotics team. This amounts to over 60% of the team's non-summer camp revenue. This “management expense” goes to the STEM fund and to executive salaries. In the same time period, only $10,000[8] of the Foundation’s STEM Fund has been spent on the robotics team’s needs (CNC Machine); this sole purchase was all the way back in 2018. Since then, the Foundation has refused to spend any of the general fund money on team expenses, which has been confirmed by the robotics team’s coaches. 

Furthermore, the Foundation has effectively silenced any possible dissent or complaints through threats; for instance, one robotics coach said that if the team informed donors and sponsors about the high fees, they would be severely punished by the Foundation.

In summary, it is evident that the Foundation takes significantly more from many school clubs than it invests in them, which explains how it can afford to pay its director a six figure annual salary. As a result of these exorbitant fees, many clubs like the Robotics team have become dependent on Summer Camp programs to fund their operations, as the foundation has relatively less influence over the revenue generated from these camps.

Furthermore, the CCA Foundation’s fee on donations is abnormally high compared to the other schools in the district, and it is the only Foundation that takes an arbitrary amount from club accounts at the end of the school year. These fees are especially egregious since nearly every major club on campus (Robotics, Speech and Debate, Science Olympiad, etc.) is 100% self-funded and receives very little financial support from the Foundation. In other words, in addition to an arbitrary end-of-year fee for management expenses, clubs pour tens of thousands of dollars each year into a general fund that largely pays for management salaries, while receiving almost no benefits in return. 

Concealment of Fees

Source: CCA Robotics June 2022 P&L Statement.

In financial documentation provided to clubs, the CCA Foundation conceals the true amount of money taken each year: instead of reporting the actual amount of donations then subtracting the 25% in the form of an expense, the foundation reports donations as the amount after the fee. For example, instead of saying that a club raised $10,000 and had $7,500 after fees, the CCAF simply says that they raised $7,500. This can potentially mislead the club by making their donation revenue appear lower than it actually was. This practice also conceals the 25% fee and makes it look like the foundation charges less than it actually does: in the financial statements provided by foundation to the STEM clubs, there are no mentions of the 25% fee directed towards the STEM Fund.

Excessive Bloat

For a school-sponsored program such as the Robotics team to spend the money that they raised, a third party must pay for the goods or services out of pocket and fill out a paper reimbursement form to submit to the foundation office. It generally takes the foundation 1 to 3 months for the individual to be reimbursed, which creates an issue especially since many school programs must regularly make large payments. To reiterate, this lengthy process is not for requesting funding from the school - it is for school sponsored clubs and teams to spend their own money which they had raised themselves.

Source: Robotics Team 3128 Finance Journal, June 18, 2024, Expense Tab[11]

For instance, as of June 18, 2024, a robotics expense dating all the way back to March 10th (over 3 months prior) was not reimbursed. This extremely long waiting period is the norm, not the exception: expenses on the robotics team can take up to 4 months before reimbursement.

This unnecessarily tedious process makes it difficult for on-campus organizations to purchase goods and services. Many parents, teachers, and coaches are reluctant to front hundreds to thousands of dollars knowing that it could take up to 4 months before they would be reimbursed, if at all. Additionally, the Foundation is allowed to deny reimbursements after the money has already been spent, which can cause even more problems. Again, this money is raised by the club or team themselves, making this process unnecessary and harmful to on-campus organizations.  

Furthermore, since the CCA Foundation controls all the money coming in and out of various school-sponsored organizations, the Foundation is responsible for compiling financial documents for the organizations to use. It is imperative that these documents be released in a timely manner, as the clubs and teams need up-to-date financial statements in order to properly manage their operations. However, the pace at which the Foundation releases these P&L statements is ridiculously slow, taking as long as two months to release monthly data. 

This places a tedious burden on clubs and makes it nearly impossible for them to track their financial information based on official documents alone. Consequently, it is an open secret that nearly all major CCA clubs are forced to have a secret unofficial set of books to record up to date information about their finances.

Misleading Financial Claims 

On their “Where your Donations Go” website tab, the CCA Foundation often cites outdated expenses and takes credit for money raised by clubs and other organizations, even when their involvement was minimal or nonexistent. 

“Camps & Clinics: $127,988”

The Foundation claims to have spent $127,988 on “Camp & Clinics”. The implication that camps run by CCA clubs are funded through donations is highly misleading, as these camps are profitable for these clubs. For example, the FRC Robotics’ 2022 Summer Camp had $47,367 in revenue vs. $15,651 in expenses[12], leading to a total profit of $31,716. As such, it is completely misleading to categorize a profitable enterprise, like the Robotics Summer Camp, as an expense. 

Furthermore, the Foundation has virtually no involvement in Camp & Clinics to begin with; the camps in question are run and advertised by the clubs themselves, including the FRC Robotics Teams (Aluminum Narwhals and the Robo-Ravens), Humanities Conservatory, the Aerospace Club, iGEM, various athletic teams, and Speech and Debate. In all of these cases, the foundation is not involved in operating the camps, fundraising for the camps, or advertising for the camps. As such, taking credit for the fundraising and activities from these camps is highly misleading and dishonest.

“CNC Machine: $10,000” and “Lathe and Stand: $4,200”

These claims are misleading because of how old the expense is: the Lathe was purchased in 2017 while the CNC Machine was purchased in 2018, meaning that these purchases are far from current. According to a coach, this old expense was only even possible because a Robotics coach was on the board of the CCA Foundation at the time. Since the coach’s departure from the board, the Robotics team has been refused funding from the STEM General Fund.

“iGEM Lab: $4,500”  and “Lab Ice Maker: $3,300”

While we were unable to confirm this information, we found records from 2018 that showed both the iGEM Lab and Lab Ice Maker as STEM Fund purchases, which may indicate that the two purchases occurred during or before 2018. If true, this would further reinforce the CCA Foundation’s pattern of taking credit for very old expenses.

Speech and Debate Incident

In June 2023, the CCA Foundation gave CCA Speech and Debate an inaccurate report and erroneously informed them that they were forty thousand dollars in debt, causing some team members to unnecessarily stress. Eventually, the Foundation provided the coach with the correct information, which showed that the team was not actually in significant debt. This incident, which has been verified by the team’s coach, further demonstrates the various incompetencies within the Foundation. 

Furthermore, during the 2022-2023 season, Speech and Debate had no clear picture of finances due to the lack of a liaison to the Foundation. Current Foundation rules require clubs to have a non-coach parent liaison in order to see finances, and current coaches with existing roles cannot serve as a Foundation liaison. As such, many organizations like Speech and Debate often do not have the ability to view their own finances. While this rule is not necessarily a difficult restriction to overcome, needing a liaison just to see finances (not manage them) is completely arbitrary and unnecessary.

We will mention that the Coach has not criticized the Foundation because of this incident, and that he reiterates how important the Foundation is to the functioning of the club. We agree with the Coach that the Foundation plays a vital role in many school and club functions, and that is why we believe it is so important for the organization to operate with the highest ethical and professional standards.

Platinum Seal of “Transparency”

In order to instill confidence in their activities and to give off the appearance of transparency and accountability, the CCA Foundation emphasizes that they have a Candid[13] Platinum Seal of Transparency. The Foundation boasts about this seal on its About Page, website footer, and even on their email sendoff. 

Source: About CCAF.

Source: Canyon Crest Academy Foundation 

However, a closer look at Candid’s policies regarding this seal makes it evident that it is not as expansive as the Foundation implies. Out of the 15 requirements to attain this seal, 10 are already required by federal law to be listed on the organization's Form 990 nonprofit tax form, which is a document that could be viewed publicly on the IRS website. The other 5 requirements are comparatively trivial and include information such as brand information and leadership demographics.  

These pieces of information do not provide any additional financial transparency above what’s already required by federal law. In other words, Candid awards their Platinum Seal of Transparency to any nonprofit that provides basic information, most of which is already public. As such, the purpose of this seal is likely to get more nonprofits to place themselves in Candid’s database, rather than to prove that the said organizations follow a high standard of transparency. Thus, we believe that this seal does not prove transparency, and cannot be used to shield the Foundation from accusations of incompetence and malicious behavior. 

Student Representative Problem

The Foundation by-laws state that “[s]ubject to Board approval, the school may appoint up to two student representatives to the Board who will serve as the student liaisons”. However, in recent years, these positions have been vacant and no attempts have been made to appoint these liaisons. 

Source: CCA Foundation By-laws.

In order to serve the interests of the student body and ensure that the clubs and organizations that help fund the Foundation receive adequate representation, it is imperative that the Foundation follows the guidance of its own by-laws and appoint student liaisons who can advise the organization and help provide much needed oversight. 

Conclusion

The CCA Foundation plays a vital role in schools functions: this includes helping the school raise money, funding under-supported programs, and handling many complicated financial tasks, among other important services.

Given their importance within the school, the Foundation’s appalling management approach indicates that the organization requires major changes in order to better serve the organizations, students, and families at CCA. 

This report reflects the opinions of the writers based on our research. We encourage everyone to seek all available facts about the situation to reach their own conclusions.

With our findings in mind, we strongly recommend that the CCA Foundation immediately take the following actions:

• Provide a reason as to why the executive director was removed.

• Undergo a complete audit of all financial transactions from 2012-2024 in order to uncover any potential fraud.

• Identify where the funds in “Other Program Expenses” actually went over the past 12 years.

• Publish Executive Director Joanne Couvrette’s salaries from 2015-2020, as required by federal law.

• Categorize and publish its annual expenses transparently.

• Cease spending of General Fund money on management salaries.

• Allow clubs to access General Funds for financial support as needed.

• Significantly reduce the fees imposed on-campus organizations and charge amounts comparable to other schools within the district.

• Reduce excessive spending on management salaries.

• Eliminate the arbitrary end-of-year surcharge.

• Reduce the reimbursement wait time to under a month, which can be partly achieved by digitizing the process.

• Remove all old and misleading financial claims.

• Appoint two student liaisons to the Foundation as per their by-laws.

• Acknowledge and publicly apologize for any past wrongdoings to donors and club members.

Appendix

[1] Full list of possible expenses: Raven’s Fund - Day Classes (Academics), College & Career Center, School Technology. Athletics - Coaches, Equipment, Transportation, Tournaments. Envision - Music/Theater/Art Programs, CCA-TV. STEM - Robotics, Science Olympiad, iGEM. Graduation - Grad Night, Graduation Day. Foundation Salaries & Overhead - Management Salaries, Overhead. While we were unable to assign “Special Events” to a specific category of expenses, we believe that it is irrelevant as the Special Events expense is very small: it made up just 1.2% of total expenses in 2023.

[2] CCA Foundation - Other Expenses

[3] Information from CCA Foundation Donation Portal.

[4] CCA Foundation - STEM Fund Revenue & Management Expenses

[5] CCA Foundation - Executive Director Salaries

[6] On the CCA Foundation’s 2004-2012 Form 990s, there were no paid employees listed. Joanne Couvrette and Gina Mahmood arrived in July 2012 (after 2012 Fiscal Year ended), and were the first paid employees listed in the Foundation’s 2013 Form 990. Thus, we can assume that the Foundation was volunteer-run before Joanne Couvrette and Gina Mahmood’s arrival.

[7] From 2008-2012, CCA Foundation annual revenues averaged $772,158 per year (before Joanne Couvrette arrived). In 2013 (first year of Joanne’s tenure), Foundation revenues were $853,463, representing a moderate 10.5% increase over the average. Thus, revenues before Joanne’s arrival were comparable to revenues immediately following her arrival.

[8] Amount confirmed by Where Your Donations Go on the CCA Foundation website. The $4,200 Lathe has been excluded as it was purchased in 2017, which is outside of the time frame stated in the aforementioned section.

[9] Percentages for other schools confirmed by various coaches and officers via email & social media.

[10] Does not include Summer Camp Revenue as fees for that category are negotiated separately and excluded from the end of year charge. Excludes 2021-2022 as an outlier due to COVID-19.

[11] Heavily altered to only include uncleared expenses. Reimbursed individuals and notes sections omitted due to privacy concerns. 

[12] From the CCA Robotics June 2022 P&L Statement.

[13] Formerly known as a Guidestar, Candid is an online nonprofit database with information on millions of organizations.