Audit flags Idaho Vocational Rehabilitation; RSA designates program high‑risk and governor recognizes $10M reallotment

Legislative auditors told the Joint Finance-Appropriations Committee on Feb. 24 that the Idaho Division of Vocational Rehabilitation lacked procedures to ensure compliance with appropriation requirements, prompting the federal Rehabilitation Services Administration (RSA) to designate the division a high‑risk grantee. The governor recognized a $10 million noncognizable federal reallotment for IDVR; the division is requesting a $2.7 million one‑time state match to access the funds and has estimated $1.7 million in costs that federal partners may deem unallowable.

April Renfro of the Legislative Services Office audits division summarized an accountability review issued Jan. 13 that found a failure ‘‘to establish procedures and control activities to ensure compliance with appropriation laws applicable to fiscal year 2024.’' Renfro told the committee the division also had problems with ‘‘insufficient financial management system’’ controls, ‘‘failures to account for and report obligations and expenditures properly,’' and ‘‘inaccurate and unsupported federal financial reporting.’'

Brooke Dupree, a Legislative Services budget analyst, described the fiscal sequence that produced the $10 million: RSA reallocated (reallotted) federal funds late in the federal fiscal year and the governor used deemed authority to recognize the noncognizable adjustment so…