PRESS RELEASE IOWA LAKES COMMUNITY COLLEGE AFFIRMS INTEGRITY, COMMITMENT FOLLOWING STATE AUDITOR’S REVIEW
ESTHERVILLE, IOWA – A state auditor’s report released today found no evidence of intentional misconduct by Iowa Lakes Community College in its administration of federal student aid and institutional grants between July 2019 and February 2024. The special investigation, requested by the U.S. Department of Education, reviewed 15 institutional grants totaling $16.1 million and 14 academic terms of Title IV compliance.
The report identified no misallocation of those grant funds, reflecting the college’s sound management of public resources and its commitment to fiscal accountability.
It also identified questioned costs related to how certain federal financial aid return amounts were calculated under complex Title IV regulations. These findings concern technical compliance determinations regarding the application of federal rules and do not allege fraud or intentional misconduct.
College leaders emphasized that the findings reflect a limited portion of the overall funding administered during the review period, underscoring Iowa Lakes’ strong stewardship of public resources and its mission to provide opportunities for quality lifelong learning and promote economic development for its communities.
Between summer 2019 and spring 2024, Iowa Lakes served 13,752 students. During that time, the college generated nearly $34 million in tuition revenue and distributed more than $24.8 million in federal financial aid through Pell Grants and Direct Loans, helping more than 6,500 students pursue their education.
“We take compliance seriously and view this report as an opportunity to refine our practices,” President Scott Stokes said. “I want to thank our employees for the tremendous amount of work they devoted to this process and the state auditor’s office for their diligence. Iowa Lakes remains committed to supporting students with integrity and ensuring they have access to the resources needed for success.”
Board of Trustees President Arden Kinnander said the review reinforced the strength of the institution.
“The board has full confidence in Iowa Lakes, its leadership and its employees,” Kinnander said. “We are proud of the difference this institution makes in the lives of students and in the growth of our communities, and we remain committed to guiding the college forward with integrity and accountability.”
The review reflects the complexity of federal regulations and includes recommended control procedures. During the process, the State Auditor’s Office reported differing conclusions related to certain calculations and sought guidance from the U.S. Department of Education; however, no formal correspondence or determination was received from the federal agency on those specific matters. While interpretations differed regarding certain calculations, Iowa Lakes respects the audit process and remains committed to clarity and continuous improvement.
Iowa Lakes Community College extends its sincere appreciation to the State Auditor’s Office for the time and diligence devoted to this complex review. The college will continue working with the Iowa Department of Education to ensure alignment with federal guidance and strengthen internal processes where appropriate.