State audit finds Idaho vocational rehabilitation lacked controls; agency seeks $2.7M match for $10M federal reallocation and uses contractor to remediate

Legislative auditors reported to the Joint Finance-Appropriations Committee on Feb. 24 that Idaho’s Division of Vocational Rehabilitation did not maintain adequate internal controls over federal grant expenditures for fiscal year 2024, producing a designation as a “high‑risk grantee” and triggering federal oversight and remediation requirements.

April Renfro, audit manager with the Legislative Services Office audits division, told the committee her team’s accountability review found the division “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 properly account for and report obligations and expenditures, and inaccurate and unsupported federal financial reporting.

Why it matters: The federal Rehabilitation Services Administration (RSA) designated Idaho a high‑risk grantee and reallocated additional federal funds to the state late in 2024. RSA attached conditions to the award and required a corrective action plan; auditors and agency staff said additional technical remediation was needed to respond to federal questions and bring reporting into compliance.

What happened: The division received a $10 million noncognizable adjustment (a late federal…