Bridgepoint Education Inc., an operator of for-profit colleges, restated its financial reports back to 2011, citing material weakness in internal accounting controls and the misstatement of revenue and debt provisions.
San Diego-based Bridgepoint (NYSE: BPI) failed to continually reassess assumptions of revenue collectibility, according to securities filings. It identified adjustments to revenue, provision for bad debts, accounts receivable and restricted cash balances that should have been recognized during earlier periods, the company said.
The operator of Ashford University and the University of the Rockies is taking steps to rectify its internal control deficiencies, including increased training and a review of accounting procedures, according to the filings.
“Management with the requisite level of accounting knowledge, experience and training commensurate with our financial reporting requirements did not analyze certain accounting issues at the level of detail required to ensure the proper application” of generally accepted accounting principles, the filings showed.
For-profit colleges are under increased scrutiny from the U.S. Securities and Exchange Commission, state attorneys general and the Consumer Financial Protection Bureau for their recruitment and marketing practices. Corinthian Colleges Inc. (Nasdaq: COCO) said last month it will shut down or sell all of its 107 campuses after the Department of Education limited its access to federal student aid.