Audit: Idaho Vocational Rehabilitation labeled high-risk; agency seeks state match, hires contractor to address reporting

Legislative auditors and agency leaders told the Joint Finance-Appropriations Committee on Feb. 24 that the Idaho Division of Vocational Rehabilitation (IDVR) has serious fiscal-management weaknesses, prompting a federal high‑risk designation and a $10 million federal reallotment that requires state matching funds.

April Renfro, chief auditor with the Legislative Services Office audits division, told the committee that auditors found the division “did not establish procedures and control activities to ensure compliance with appropriation laws applicable to fiscal year 2024.” The audit identified insufficient financial-management systems, failures to account for and report obligations and expenditures properly, and inaccurate and unsupported federal financial reporting.

Why it matters: The division supports Idahoans with disabilities seeking employment; audit findings and uncertain federal decisions put both future federal funding and day-to-day client services at risk.

Noncognizable adjustment and supplemental requests: Budget staff and IDVR leaders said the governor recognized a noncognizable adjustment of $10,000,000 in federal funds after Rehabilitation Services…