By Corinne Murdock |
Arizona’s auditing agency for the Department of Veterans Affairs (VA) found no wrongdoing in its recent audit of Grand Canyon University (GCU).
The Arizona State Approving Agency (SAA) undertook the audit in response to the ongoing Federal Trade Commission (FTC) lawsuit against GCU for allegedly deceptive advertising and illegal telemarketing. The FTC sued GCU in December, several months after the Department of Education (ED) fined the university over $37 million for allegedly deceiving doctoral students into paying more for their degrees than advertised.
In the SAA letter to GCU reviewed by AZ Free News, SAA said that its audit yielded no evidence supporting the Biden administration’s claims.
“The Arizona SAA did not have any substantiated findings based on our review of Grand Canyon University,” stated SAA’s letter to GCU. “There are no findings impacting the continued approval of Grand Canyon University at this time. There are no follow-up actions required by Grand Canyon University at this time.”
SAA announced its audit in January, the second one to take place in under a year; the last SAA audit occurred last May.
GCU President Brian Mueller told AZ Free News that the SAA’s findings were in agreement with two favorable court rulings in recent years, all of which found GCU to not be guilty of the issues that the Biden administration claims exist. Mueller said that these discrepancies were “troubling,” and further indication of an unjust and purposeful targeting.
“The SAA, our accrediting body and two federal judges all looked at the same set of facts as the bureaucrats in Washington, D.C. and came to the complete opposite conclusion,” said Mueller. “To have zero findings, praise and a court ruling that our disclosures are clear on one end and then have the U.S. Department of Education impose its largest fine ever on the other… that is very troubling. To be targeted in this manner by the federal government is an egregious example of overreach and the weaponization of these federal agencies.”
The Higher Learning Commission, GCU’s accrediting body, assessed the university’s doctoral disclosures to be “robust and thorough,” providing a “clear” academic and financial pathway for prospective students.
The Biden administration appears to be alone in its unfavorable assessment of GCU; further records to provide context as to why have not been made available for public review, either.
The lack of transparency prompted the Goldwater Institute to sue the Biden administration last month. ED denied their public records request seeking the documents that informed ED’s decision to fine GCU. The records request was spurred by the fact that ED didn’t include student complaints or visitations to GCU as part of their investigation into the university.
In our report issued several days before ED announced its record fine into the university, the Biden administration apparently coordinated efforts between ED, FTC, and VA to investigate GCU after the university sued ED for denying its nonprofit status. The IRS granted nonprofit status to GCU in 2018, but it took until late 2019 for ED to deny the status.
SAA recognized GCU as a private nonprofit in its most recent audit report.
Several months after GCU sued ED in early 2021, the agency launched a multi-year, off-site review of GCU. Several months after ED’s announcement, the FTC announced that it found GCU in violation of federal law; each violation incurs civil penalties of up to $50,000. The last time the FTC exercised the authority it leveled against GCU was in 1978.
The FTC, ED, and VA began their investigations into GCU in 2022.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
