Audit finds weak controls at Idaho Vocational Rehabilitation; RSA designates program high-risk after $10M federal reallotment

A legislative audit and agency testimony on Feb. 24 laid out a complex federal-funding problem for the Idaho Division of Vocational Rehabilitation (IDVR), including a federal agency designation as a high-risk grantee, a $10 million noncognizable federal reallotment, an estimated $1.7 million in potentially unallowable charges, and a roughly $2.5 million contract for outside consultants to assist with forensic accounting and corrective actions.

April Renfro of the Legislative Services Office audits division told the Joint Finance-Appropriations Committee that the audit (Accountability Report, issued Jan. 13, 2025) found IDVR "did not establish procedures and control activities to ensure compliance with appropriation laws applicable to fiscal year 2024." The report identified weaknesses in financial management, failures to account for obligations properly, and inaccurate or unsupported federal financial reporting. Renfro said the federal Rehabilitation Services Administration (RSA) designated the division as a high-risk grantee and imposed specific conditions under 2 CFR 200.208.

Brooke Dupree, a Legislative Services budget and policy analyst, summarized the financial picture for the committee: IDVR’s FY2024 personnel costs were roughly $11.8 million and trustee-and-benefit payments about $11.8 million. In September the governor recognized a $10 million noncognizable adjustment after RSA reallotted federal funds; those federal funds require a state match (Dupree said the federal share is 78.7% and the state share 21.3%). To access the full…