Home > News > October 27, 2006

Capella University is Being Audited by the
United States Department of Education,
Inspector General's Office!

We have just learned that, according to Capella University's latest submission (October 27, 2006) to the Security and Exchange Commission (SEC) that they being audited by a Federal law enforcement agency; this time, they are being subjected to an audit by the United States Department of Education, Inspector General's Office. Interestingly, this is the same law enforcement agency that nailed another for-profit online school - the esteemed University of Phoenix! In that case, "UOP applied inappropriate methodologies" that "may have understated the amount of Title IV funds to be returned by over 10 million dollars!"

Risks Affecting Us

"Our business is subject to numerous risks as discussed more fully in the section entitled “Risk Factors” immediately following this Prospectus Summary. In particular, our business would be adversely affected if . . .

. . .we [Capella University] experience damage to our reputation or other adverse effects in connection with the compliance audit of Capella University currently being conducted by the Office of Inspector General of the U.S. Department of Education [!]"

Site visitors will be delighted to learn that the Inspector General's Office (OIG) is another law enforcement arm of the United States Department of Education that "conducts audits, investigations, and inspections of education programs and operations. Anyone knowing of fraud, waste, or abuse of Department of Education funds should contact the OIG Fraud Hotline to make a confidential report."

While we currently do not have any details regarding this potentially significant audit, we urge all concerned citizens who may be aware of any "fraud, waste, or abuse of Department of Education funds" by Capella University and/or their officials to report it immediately to the OIG's fraud hotline!