Maybe I missed this somewhere along the line and perhaps it's old news but it's new to me: During the Company’s discussions with ED regarding the release of the $16 million and the negotiation of the Memorandum, ED indicated that, in connection with its ongoing review of the Company and its schools, it is contemplating denial of recertification or removal of certification of institutional Title IV eligibility with respect to certain of the Company’s schools, which, depending on the schools, could have a material adverse effect on the Company. http://www.sec.gov/Archives/edgar/data/1066134/000110465914047575/a14-15891_18k.htm
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Your slow beyond belief!
Very old news. I don't have the specific times, but loss of Title IV eligibility at a few campuses has been discussed by upper management over the last few years. It's just ED is finally getting a little more serious. Also in the past the analysis was slightly different. With lots of cash in the bank, and with many campuses, loss of Title IV funds at one school might not have impacted the operation so much, thus the whole materiality issue is in question. Now CCi does not have cash, so what was once a small issue has become material. At this point I am trying to figure out how the accounting department is keeping up with all of this. Too many issues are piling up that need to be carefully tracked and reported. Violations of SOX can provide new housing for the executives.