Audit finds control failures at Idaho Vocational Rehabilitation; committee hears $10M federal reallotment, $2.7M state-match request and $2.4M contractor costs

Legislative auditors and budget staff briefed the Joint Finance-Appropriations Committee on Feb. 24 about widespread financial-control and reporting problems at the Idaho Division of Vocational Rehabilitation (IDVR), the federal designation of the division as a high‑risk grantee, and the agency’s use of a multi‑million‑dollar consultant contract.

Brooke Dupree, a budget and policy analyst with the Legislative Services Office, told the committee that the governor recognized a $10,000,000 noncognizable federal adjustment for IDVR and that the division is requesting a $2,700,000 one-time general-fund supplemental as the required state match. Dupree said the governor recommended an additional $1,700,000 one-time general-fund supplement for client services the division expects federal partners to deem ineligible.

Audit findings and federal reaction

April Renfro of the Legislative Services Office audits division told the committee the office’s accountability report 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 federal Rehabilitation Services Administration (RSA) designated IDVR as a high‑risk…