State auditors and federal officials flag Idaho Vocational Rehabilitation for high-risk status; committee hears $10M federal allotment, $2.7M state match and $1

The Idaho Division of Vocational Rehabilitation (IDVR) was designated a high‑risk grantee by the U.S. Rehabilitation Services Administration (RSA), and legislative auditors told the Joint Finance-Appropriations Committee on Feb. 24 that the division’s internal controls and financial reporting were insufficient to ensure appropriation compliance.

Brooke Dupree, a budget and policy analyst with the Legislative Services Office, briefed the committee on the division’s fiscal picture and said the governor recognized a $10 million non‑cognizable adjustment after RSA re‑allotted federal funds to Idaho. Dupree told the committee that the $10 million federal increase requires a state match and that the division is requesting a $2.7 million one‑time general‑fund supplemental as Idaho’s share of the match. The governor’s recommendation included that $2.7 million and an additional $1.7 million one‑time general‑fund request intended to cover services the division estimates its federal partners will deem ineligible for reimbursement.

Dupree explained the mechanics: “The money came from the Rehabilitation Services Administration. ... when it's getting close to the end of the federal fiscal year, they look at all the grants that they've given to states and they see who isn't going to spend their full grant and that money comes back and gets re allotted to states that they do expect to be able to spend that grant.” She said the federal award carries a required state match (roughly 21.3%…