Legislative audit and federal review find control failures at Idaho Vocational Rehabilitation; committee hears $10M federal reallocation and contractor costs

The Joint Finance-Appropriations Committee on Feb. 24 received an update from legislative auditors and agency officials outlining significant financial-control weaknesses at the Idaho Division of Vocational Rehabilitation (IDVR), the federal designation of the agency as a high-risk grantee, a $10 million federal reallotment recognized by the governor, a $2.7 million state-match request to access that money, and an estimated $1.7 million in services found unallowable by federal reviewers.

April Renfro, manager in the Legislative Services Office audits division, told the committee auditors found that "the division did not establish procedures and control activities to ensure compliance with appropriation laws applicable to fiscal year 2024." Renfro said the finding prompted a fiscal monitoring review by the Rehabilitation Services Administration (RSA), which on May 3 designated IDVR a high-risk grantee and imposed specific conditions under 2 CFR 200.208 while requiring a corrective action plan.

The committee heard that the governor recognized a $10 million noncognizable federal adjustment — money RSA…