Nearly 60% of the students are in one of the two OPEIDs, so timing cash relies heavily on those two. The modular campuses have starts every month, so Title IV funds should be flowing in frequently, but the start dates seems to have been uniformly moved toward the end of the month. Heald appears to have a similar academic calendar to EUO. For Heald classes end October 5, and the next quarter starts October 20. My concern is what happens if ED has paid for the students of EUO and Heald and the cash runs dry? Also from the EUO reports, it seems that the student population is way down. The above numbers were as of March 31, 2014. To be specific, what I am suggesting is that CCi might be paying today's bills and payroll with cash that is to cover the entire term that ends in October. If this is true, then it is very likely that CCi will run out of cash before October, and ED won't be sending the big cash until the start of the next term, plus up to 21 days, depending on the approved drawdown in days, as monitored by Fitzgerald. I've seen this with students. As soon as cash comes to for an entire term, it's spent right away, and then nothing is left. Another way to put it is that possibly we are still in the honeymoon phase of the operating agreement, and this honeymoon period might end a bit too soon for CCi.
5 replies (most recent on top)
"that meant they collected funds for students past the 14 consecutive day FA law. Crime." After 60% of the term has passed all the FA funds are earned. So it might not make any difference.
Last term they kept fraudulent attendance records. They kept students in classes though they hadn't participated in months in my classes. (I'm online and had no access to those records to change them.) that meant they collected funds for students past the 14 consecutive day FA law. Crime.
Of course they are lapping which is a fraud term described below. That has always been going on there.
Definition of 'Lapping Scheme' - An accounting method that involves altering the accounts receivable section of the balance sheet when cash that is intended for the payment of a receivable is stolen. The method involves taking the first receivable collected and using that to cover the theft, while the second receivable collected is accounted to the first, the third receivable to the second, and so on.
Honeymoon in so far as ED is still sending cash and allowing a drawdown of the 21 day delay.
Honeymoon? We are in the death throes! The paycut 'ends' in October, just in time to shut us down. ECPO had 27,000 students last term. It's 16,000 this term. They're going down.