Washington Post 2011 Annual Report Download - page 23

Return of Title IV Funds. DOE regulations require schools participating in Title IV programs to calculate correctly and
return on a timely basis unearned Title IV funds disbursed to students who withdraw from a program of study prior to
completion. These funds must be returned in a timely manner, generally within 45 days of the date the school determines
that the student has withdrawn. Under DOE regulations, failure to make timely returns of Title IV program funds for 5% or
more of students sampled in a school’s annual compliance audit in either of its two most recently completed fiscal years
could result in a requirement that the school post a letter of credit in an amount equal to 25% of its prior-year returns of Title
IV program funds. Currently, none of KHE’s schools is required to post a letter of credit. If unearned funds are not properly
calculated and returned in a timely manner, an institution is subject to monetary liabilities, fines or other sanctions.
Test Preparation
In 2011, Kaplan Test Preparation (KTP) included test preparation businesses in the areas of pre-college, graduate, health
and bar review, and Kaplan Publishing. Each of these businesses is discussed below. In September 2010, KTP
announced a plan to reorganize its business consistent with the migration of students to Kaplan’s online and hybrid test
preparation offerings. In conjunction with this plan, KTP significantly reduced the number of leased properties from 178
to 79 in 2011 and plans to close several more locations in 2012, as existing leases expire.
Test Preparation. KTP’s pre-college and graduate businesses prepare students for a broad range of college and
graduate school admissions examinations, including the SAT, ACT, LSAT, GMAT, MCAT and GRE. KTP’s health business
prepares students for medical and nursing licensure exams, including the USMLE and NCLEX. Kaplan Bar Review, which
previously operated under the name Kaplan PMBR, offers full-service bar review in 26 states, as well as review for the
multistate portion of the bar exam nationwide.
During 2011, KTP courses were offered at numerous locations throughout the U.S., Canada, Puerto Rico, Mexico,
London and Paris. KTP also offers courses online, which are delivered in a live online classroom and a self-study format.
In addition, KTP licenses material for certain of its courses to third parties and a Kaplan affiliate, which, during 2011,
offered courses at 44 locations in 12 countries outside the U.S. KTP also offers programs and services, including college
admissions examination preparation courses, directly to schools and school districts for students in kindergarten through
12th grade. Through its Kaplan Kids business, KTP provides customized online programs for children from kindergarten
through 8th grade and private tutoring in select markets.
The courses offered by KTP are provided in various formats, including classroom-based instruction and online programs.
During 2011, these businesses enrolled more than 390,000 students in their courses, including more than 148,000
enrolled in online programs. KTP’s student enrollment numbers do not include students enrolled in PACE programs, which
have been operating as part of Kaplan University since the beginning of 2011.
Publishing. Kaplan Publishing, which is operated separately from Kaplan Professional Publishing, focuses on print test
preparation resources sold through retail channels. At the end of 2011, Kaplan Publishing had more than 670 products
available in print and digital formats, including more than 300 e-books. In 2011, publishing of test preparation titles was
integrated into the respective KTP businesses.
Kaplan International
Kaplan International includes Kaplan Europe and Kaplan Asia Pacific. Each of these businesses is discussed below.
Kaplan Europe. Kaplan Europe includes the following businesses, which are all based in the U.K. and Ireland: Kaplan
UK, Kaplan International Colleges and a set of higher education institutions.
The Kaplan UK business in Europe is a provider of training, test preparation services and degrees for accounting and
financial services professionals, including those studying for ACCA, CIMA and ICAEW qualifications. In addition,
Kaplan UK provides legal and professional training, including the operation of a U.K. law school in collaboration with
Nottingham Trent University’s Nottingham Law School. In 2011, Kaplan UK provided courses to approximately 75,000
students, of which 52,000 were dedicated to accounting and financial services coursework. Kaplan UK is headquartered
in London, England and has 27 training centers located throughout the U.K.
The Kaplan International Colleges (KIC) business comprises a university pathways business and an English-language training
business. The university pathways business offers academic preparation programs especially designed for international
students who wish to study in English-speaking countries. KIC operates university pathways programs in collaboration with
seven U.K. universities. At the end of 2011, KIC’s university pathways business was serving approximately 2,800 students.
The English-language business (previously operated under the name “Kaplan Aspect”) provides English-language training,
academic preparation programs and test preparation for English proficiency exams, principally for students wishing to study
and travel in English-speaking countries. KIC operates a total of 43 English-language schools, with 21 located in the U.K.,
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