Bridgepoint Education Provides Update to OIG Compliance Audit of Ashford University
September 03 2009 - 8:28PM
PR Newswire (US)
SAN DIEGO, Sept. 3 /PRNewswire-FirstCall/ -- Bridgepoint Education
(NYSE: BPI) today announced that on September 2, 2009, Ashford
University received an update from the U.S. Department of
Education's Office of Inspector General (OIG) regarding the status
of its ongoing compliance audit of Ashford University. As
previously disclosed in Bridgepoint Education's filings with the
Securities and Exchange Commission, the OIG audit services division
commenced a compliance audit of Ashford University in May 2008,
covering the period March 10, 2005, through June 30, 2009. The OIG
indicated it is considering audit findings in the following areas:
compensation policies and practices relating to enrollment
advisors; calculation of returns of Title IV program funds;
timeliness of returns of Title IV program funds; student
authorizations to retain credit balances; disbursements of unearned
Title IV program funds; and maintenance of supporting documentation
for students' leaves of absence. The OIG advised Ashford University
that the identified findings are tentative and remain under review
by the staff of the OIG, and that it expects to issue its draft
audit report within the next 30 days. Bridgepoint Education
believes that Ashford University operates in substantial compliance
with the regulations of the Department of Education which are
applicable to the areas under review, but it expects that this
report will assert findings of noncompliance and include draft
recommendations to the Office of Federal Student Aid with respect
to fines and corrective action. Ashford University will have 30
days to respond to the draft audit report. Thereafter, the OIG will
issue its final audit report to the Office of Federal Student Aid.
Ashford University will have an opportunity to resolve any findings
and recommendations with officials of the Office of Federal Student
Aid. Due to the preliminary nature of the OIG's findings, we cannot
predict the extent of the OIG's draft or final audit findings, or
the potential liability or corrective actions that might result
from those findings. "From its inception, Bridgepoint Education has
made regulatory compliance a major area of management focus and
considers it of utmost importance. We intend to cooperate fully
with regulatory authorities and will respond appropriately once we
have had an opportunity to review the OIG's draft audit report,"
said Andrew Clark, Chief Executive Officer of Bridgepoint
Education. About Bridgepoint Education Bridgepoint Education's
postsecondary education services focus on offering associate's,
bachelor's, master's and doctoral programs in the disciplines of
business, education, psychology, social sciences and health
sciences. Bridgepoint Education's regionally accredited academic
institutions - Ashford University and University of the Rockies -
deliver their programs online as well as at traditional campuses
located in Clinton, Iowa, and Colorado Springs, Colorado. For more
information about Bridgepoint Education, visit
http://www.bridgepointeducation.com/. Forward-Looking Statements
This news release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements include information relating to future events,
financial performance, expectations and regulation. These
forward-looking statements are based on assumptions and estimates
including, without limitation, those regarding: the timing and
content of the draft and final audit reports from the Office of
Inspector General of the U.S. Department of Education (OIG); the
recommendations of the OIG to the U.S. Department of Education
regarding any fines or other actions to be taken against Ashford
University; and the Company's expectation that it has meritorious
responses to, and will respond appropriately to, the OIG's audit
reports. Forward-looking statements are based on information
available at the time those statements are made and management's
good faith belief as of that time with respect to future events and
are subject to risks and uncertainties that could cause actual
events to differ materially from those expressed in or suggested by
the forward-looking statements. Important factors that could cause
such differences include, but are not limited to: the Company's
inability to influence the OIG to change the findings in the OIG's
audit reports; the Company's inability to address the OIG's
preliminary findings or the ultimate findings of the OIG's audit
reports; the imposition of fines or other corrective measures
against the Company's academic institutions; the Company's failure
to comply with the extensive regulatory framework applicable to its
industry, including Title IV of the Higher Education Act and its
regulations, and other factors discussed in Part II, Item 1A (Risk
Factors) of the Company's Form 10-Q filed on May 21, 2009 and
August 11, 2009, and in other periodic reports the Company may file
with the Securities and Exchange Commission from time to time.
Forward-looking statements speak only as of the date the statements
are made. You should not put undue reliance on any forward-looking
statements. The Company assumes no obligation to update
forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting forward-looking
information, except to the extent required by applicable securities
laws. If the Company does update one or more forward-looking
statements, no inference should be drawn that the Company will make
additional updates with respect to those or other forward-looking
statements. DATASOURCE: Bridgepoint Education CONTACT: Diane
Salucci, Vice President of Corporate Communications and Investor
Relations, +1-858-668-2586, ext. 3690, or Spencer Davis, Director
of Investor Relations, +1-858-668-2586, ext. 4190, , both of
Bridgepoint Education Web Site:
http://www.bridgepointeducation.com/
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